WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 10/28/2026
MAR-MAY COTTON #2 SPREAD (CTH27-CTK27)
The MAR-MAY COTTON SPREAD (CTH27-CTK27) has been trending down since April 16th when it spiked up on the open and made its 52-week high of positive (+).43. This downward trend continued until September 28th when it made its 52-week low of negative (+)1.88. It has been trading sideways ever since. It matched its 52-week low of -1.88 on October 12th. Even when it was trading sideways, the MAR-MAY COTTON SPREAD (CTH27-CTK27) was not able to settle above the 14-day or 21-day moving averages. As a matter of fact, it has not settled above the either of these moving averages since August 24th, until yesterday. Today it settled right with them and only .24 above the double bottom of 1.88.
I think getting long CTH27-CTK27 might be a good risk/reward trade using a short stop below the 52-week low. I am suggesting trying to get long this spread when the market opens tomorrow at -1.64 (today’s settlement) or better.
If you are able to buy CTH27-CTK27 at -1.64 or better:
Risk 0.30 or $150 Per Spread, to make 1.00 or $500 Per Spread, plus fees and commissions.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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