What a difference a day makes…ugh! Yesterday, iPath DJ-UBS Coffee TR Sub-Idx ETN (JO) looked like it was reversing to the upside off of a June-July triple low in the vicinity of 32.00.
After yesterday’s upside reversal from 31.91 to 33.15, JO was poised for upside continuation in the aftermath of a completed correction from the April 24 high at 43.00.
Today’s breakdown and sharp downside reversal to a new corrective low could not have surprised me more.
Unless JO stages a sharp upside recovery above 32.00 by today’s close, I will bail out of my 50% long position ahead of the closing bell.