This is a weekly chart of NYMEX cotton futures. Amid all the Fed's efforts at quantitative easing (QE), permanent open market operations (POMO), and a falling dollar, cotton is quietly telling us something.
In my opinion, it's saying that it still isn't working. In other words, supply and demand can't be manipulated forever. At some point, market forces take over.
Remember this especially when it comes to the dollar. When there is a record short position against it at the same time as a record bearish sentiment against it, everyone is on the same side of the boat. What happens when a wave comes along?
Rogue waves do exist. Ask any seaman or look it up yourself. They seem to come out of nowhere.
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