Eoin Treacy's view Cotton accelerated to an historic nominal peak by mid November and pulled back sharply, only to rally to hit another new high in December. It has failed to sustain the break to new highs and steadied somewhat above 140¢ over the last two weeks. Prices remain overextended relative to the 200-day MA and the prospects for increased volatility and a reversion to the mean have increased. I initiated a short in the March 2011 contract at 140.305¢ including spread-bet dealing costs.