Good Morning Folks
This morning at 8:29 July coffee was flat at 1.23. During the next three minutes July rose 200 points on a volume of 1380 lots. The official opening of coffee at 8:30 is normally a little volatile, but this morning it was excessive. The normal volume during any five minute period is 150 lots. Currently, July is 75 points off of the high at 1.2425.
This 200 point jump is interesting since during the past 10 trading days July has traded within the narrowest range that I have seen in recent history, only 515 points from a high of 1.2595 to a low of 1.2080.
Since early March both the 40 and 60 day moving averages have gone up about 550 points to about 1.2475. July is currently trading below these averages. Three times since March July has aggressively gone up and come down.
Is today the beginning of another sharp rise which will be followed by a sharp fall?