Wheat Crop Smallest In 23 Years
July wheat
(
WN1 |
Quote |
Chart |
News |
PowerRating) is bouncing higher for a third straight session off its delayed Turtle Soup Plus Two
(one day after the TS+1 reversal issued for May 9) signal. Poor planting
conditions, fewer acres planted, and hot weather are all contributing to higher
prices and the view that wheat could move substantially off its recent contract
lows as forecasts for crop output continue to get pared back. Wheat is up 5 1/2
today at 276 3/4.
Debt futures are bouncing back from Friday’s action when
they got slammed in their second-worst decline of the year. Data on factory
output, which fell slightly more than expected, and feeble capacity utilization
(at a 10-year low) highlighted continuing weakness in the manufacturing sector.
Although
T-bonds
(
USM1 |
Quote |
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News |
PowerRating) and
10-year notes
(
TYM1 |
Quote |
Chart |
News |
PowerRating)Â fell too far from their prior 20-day low to
trigger today’s TS+1 Buy
setup, they are providing an indication of today’s reversal. The bonds and
benchmark notes are up half a point and trading on the top of their
ranges.Â
The perception that the US economy will continue to
outperform the Euroland economy is bolstering
June dollar index futures
(
DXM1 |
Quote |
Chart |
News |
PowerRating). This contract has broken the
right shoulder of a head-and-shoulders pattern. A closer look shows that the
dollar index has broken head-and-shoulder-top formations at least twice before
in fractal, or repeating, patterns that have subsequently rallied. The DXM1 is on
the Momentum-5
List.
Going the other way and demonstrating latent downside
momentum by posting on the New 10-Day Low List,
euro FX futures
(
ECM1 |
Quote |
Chart |
News |
PowerRating) are set up to move to their lowest levels of
the year (same for the correlated
Swiss francs
(
SFM1 |
Quote |
Chart |
News |
PowerRating)). The Swiss franc is indicating that this related
pair could make a larger-than-normal move by posting on the Multiple Days Low
Volatility List.
Gary
Kaltbaum on TradingMarketsWorld ! Gary Kaltbaum will be appearing on the
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