BAL (Cotton ETN) is Killing It, +176% Since March 2009 Low, +64% Pre-Flash Crash High
11/02/2010 03:21:00 PM
The fabric of our lives, cotton, is breaking price records due to global supply constraints (Pakistan/India), emerging market demand, the reflation bid (flight to real assets) and a lower Dollar. The question is, when do these costs pass through to the consumer, or cotton hedges expire and profit margins get squeezed. I compared BAL to JJC (copper etn), QQQQ (Nasdaq 100 etf ), DIA (dow etf) and GLD (gold ETF). I read that the price of cotton is at a 140 year high (1870). At some point there will be a quick 38.2% Fibonacci retracement in $BAL and cotton futures. Boo ya.