And that can happen now.
The thing is there is a tremendous complacency on the short side, and the market always mocks on the guys with complacency. There is too much money to now pick up over there and the risk-reward ratio doesn't favor the short side. Even in Brazil, there is more rain on the horizon, the accumulated deficit of rains is a fact. At the end of this month, new figures will come up counting that and the market won't wait until that.
About the downside, projections, the market should have been broken the 1 dollar support days ago, however, it encountered BUYINGs on the deeps.
Today ICE stock falls down 2,000 bags. Be ready for a big drawdown!!. That situation will indeed matter because ICE stocks are very cheap. Brazilian coffee deliveries don't matter because they will not deliver big bulks as someone think, however, we will see some coffee entering the warehouse of Antwerp, but also will see a high rate of rejection. Currently, the exchange pays more than traders, which explains coffee there.
I don't have any position in the coffee market, but now I will start going long. I don't care if the market will continue coming down. I will buy more.
My philosophy is SIMPLE you can never buy in the low o sell in the high unless you think you are the best trader in the world. LOL!
It's time to go long guys.
Be careful bear friends
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