Looking at the chart we have now broken the bottom of the 3 month trading range today and did not see much of a bounce. Specs lowered their long position last week to 12.1% from 13.3% as can be seen on page 2. The USD continues to hold firm and the DJI is struggling at the 10k level. Outside markets are not supporting cotton and the fear of inflation is very low so the commodity complex in general is sliding lower.

Fundamental demand is still strong as China jumped into the ring this weekend and will remain good buyers scale down. However, we are breaking some technical support levels that may find some sell stops if specs continue to liquidate. Cert stocks are still growing and the volume is rising so we could be setting up for some kind of correction very soon.