Finally Ripe

After being the laughingstock of an underwhelming group of soft commodities, the mystical cocoa plant may finally be ripe to make some noise during the spring months. 

Using the thinly-traded ETN, NIB, below on the daily timeframe, as a rough proxy for the futures contracts, we can see cocoa putting in a more defined bottoming formation alongside upticks in buy volume than at any moment in time in a good while. Note how price carved out a base formation after a very steep, prior downtrend. This is clearly more constructive action with the $25 level needing to hold now. 

As for equities, bears made a push within the last hour or so which is sure to keep exuberant longs into the morning bounce honest. Weakness in GOOGL is not helping the cause, either, a name I sold out of on Monday for a small win due to the disappointing action. 

At a minimum, the market still may need a bit more time to firm up. More on this in my usual Midday Video for Members.