SGG (sugar ETN) appears to offer an objective long entry here following the successful test of the 42.94 support level & recent trendline breakout while the long-term charts of sugar futures remain constructive. As such, SGG will be added as an official long swing trade idea around current levels. The price targets for this trade are T1 at 48.39 & T2 at 54.03, subject to revision depending on how the charts of sugar futures develop. There is also a chance that one or more additional price targets might be added if the longer-term bullish case for sugar continues to firm up. The maximum suggested stop for this trade (if targeting T2) is any move below 41.45 with a suggested beta-adjusted position size of 0.90.

SGG daily Nov 29th

SGG daily Nov 29th

The previous official swing trade on sugar used another ETN, CANE, as the proxy on that trade as for years I used the former SGG, which then was delisted & moved to trade on the OTC market under the ticker SGGFF as the Barclays was phasing that version of the ETN out to replace it with what is now once again SGG. Although we closed the CANE trade out with a near-perfect exit at the first & revised-to-be-final target, I didn’t like the fact that CANE had consistently underperformed both SGGFF as well as sugar futures during that rally. That previous trade not only exited with near impunity, with sugar correction sharply from there but we also we able to time our entry within close to the low in sugar prices back on August 9th, with that previous weekly chart of $SUGAR (sugar futures) and the updated weekly chart posted below.

Keep in mind that as a relatively new ETN, SGG is still somewhat thinly traded. As such, that will often lead to an unusually wide spread (i.e. the difference between the bid & ask price). As such, I find it best to use limit orders in lieu of market orders when entering or exiting a position like this while splitting the difference between the bid & ask price. I like to give it a few minutes, maybe even 10-minute or longer if the ETN is not moving sharply higher, and then move the order closer to the ask price if it hasn’t been filled after a while.