Sugar High ($SGG)

• Charles Amadeus
• August 29th, 2009

This scan shows Exchange Traded Products trading at new highs and lows, and sugar is reaching for the sky despite new warnings about the health problems associated with its consumption. The WSJ ran this story a few days ago citing the American Heart Associations recommended amount of 9 teaspoons daily versus the average American diet consisting of 22 spoons.

Counting sugar intake in spoons reminds me of another wonderfully intoxicating natural extract, so be cautious when using highly processed consumables. Nevertheless, health and morality be damned, let’s focus on the real news here, the triple top breakout signal on Friday, August 28th.

$SGG is an ETN that tracks the price of sugar for those who do not speculate in commodity futures. While rather illiquid, 65.72 looks like a good for determining position size and managing risk with a stop. Trading in an uptrend with no signs of weakness, this addictive white powder looks poised to take bulls higher.