Taking Aim at an Old Target

Commodities are finally catching a broad-based bid today, with a big key being whether they can stage a strong close. 

While many eyes are on the metals, precious and otherwise, as well as crude oil, it is also worth taking a gander at some of the softs. Corn and wheat are snapping back hard from recent sell-offs, and coffee is taking some baby steps. 

On the JO daily chart, below, ETN for coffee, note the highlighted falling channel is threatening an upside breakout. 

In addition, note the weakness in plays like DNKN SBUX today. I recognize the fundamental argument that those firms may already have coffee costs locked in. But the market does what it does, and the knee-jerk reaction to sell DNKN SBUX into a coffee rally is something to monitor going forward. 

I will discuss some specific trade ideas related to this thesis for Members in my usual Midday Video, filming now.