Sugar House Casino Emerging from a Rough Neighborhood

For all of the backing, filling, head-fakes and heartbreak, the coffee and sugar commodities both look to be cementing longer-term bottoms with their recent rallies which appear to be holding steady. 

For quite some time now, trading the thin soft commodity ETNs has been very casino-esque, ironically tantamount to the Sugar House Casino in Philadelphia, with their day-to-day roulette wheel type of action. But we still run through them on a nightly basis for Members who trade actual soft commodity futures. 

Still, the issue of whether the likes of sugar and coffee (along with soybeans) will continue in a new bull market likely means that eventually these ETNs will become more popular with the retail trader and thus eventually more liquid. 

First, the SGG weekly chart, below, shows the confirmed inverse head and shoulders bottom, which we have bene tracking for over a year now. 

Next, note that the Brazilian sugar producer Cosan, CZZ, reports earnings after the bell tomorrow. So it will be interesting to see what commentary they have and, of course, the market's reaction, since CZZ has been responding well to the rally in sugar.