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Obvious Trade of the Day: Hurricane Irma Orange Juice

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Tuesday saw a five percent run up in Frozen Concentrated Orange Juice contracts following the build up of hurricane Irma into a class five monster over the long weekend. It looks like it will make landfall soon and the orange groves in Central Florida could take a pretty heavy hit. While FCOJ is primarily imported from points south (such as Brazil and Mexico) it acts as a substitute for the fresh OJ that Florida primarily produces when the price rises.

Those are the basic fundamentals. The technical picture is also outstanding with FCOJ prices trending down for most of the last year but setting up a line of accumulation over the past three months. Tuesday's action represents a clear breakout of that line and there is very little in the way of overhead resistance.

Use proper risk management and I think you could make some money here. If you don't know what that means and are curious, you could email me at

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Mr. Batson thinks the most important fundamental that ought to be considered when analyzing liquid assets is the necessary multidecadal trade-off in outperformance between stocks and commodities. This is a natural part of the business cycle that allows supplies of raw materials to be increased in response to the rising demand created by the economic expansions facilitated by epochal stock bull markets.
Mr. Batson is currently seeking new clients who fit the definition of "Qualified Eligible Persons." If you would like to discuss the markets with a trader who has consciously chosen to place himself outside the mainstream of investment thinking for the past decade, please contact Mr. Batson at
David Batson, CTA is engaged in advising clients on approximately 37 globally-traded futures contracts. While the adviser has a primary focus on the precious metals markets, he may advise positions in any market including the energies, grains, meats, softs, financials and fixed income.

David Batson is the owner and sole adviser of David Batson, CTA (Commodities Trading Adviser) and has been trading professionally since 1999. Beginning with his owns accounts in stocks, Mr. Batson managed to be completely out of equities by 2000 and short by 2001. Not wishing to be trading solely in a bear market in stocks, Mr Batson turned his focus towards commodities, understanding that it was time for an epochal (generational) bull market in raw materials and in gold in particular.

Mr. Batson began the process of registering as a Commodities Futures Broker with the National Futures Association (NFA) in 2002, initially going to work with Empire Futures based in Los Angeles, California. Upon obtaining his Series-3 license Mr. Batson then worked at various brokerages in Seattle, Chicago and Dallas, notably with CMB Trade Group based in Dallas, Texas. Mr. Batson first registered his license with CMB in 2005 and had clearing arrangements until 2012.

Mr Batson first registered as a Commodities Trading Adviser in 2012.

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