Corn Getting Husked Again
Corn futures
(
CU1 |
Quote |
Chart |
News |
PowerRating) are falling sharply for a second day as traders reassess whether changes in the crop forecast and weather outlook last week merited a 28-cent run in prices. As pointed out in Friday’s recap, Sept. corn’s run was capped at the confluence of the 168.8% and 261.8% Fibonacci extensions of prior swings.
For today, both Sept. and Dec. corn
(
CZ1 |
Quote |
Chart |
News |
PowerRating) have pulled back 50% from their June 25 through July 12 rallies and are finding support at these levels. According to the recent Commitment of Traders Report, although funds have exited short positions en masse, they still hold a net short position. Despite the past two days’ downdraft, this gives corn a bullish slant because it means more short covering could be in order and that funds still have plenty of buying power. CU1 has come down to fill the 7/10 gap down a heavy 10 cents for a second day.
Presaging a potential move to its lowest level of the year, August heating oil
(
HOQ1 |
Quote |
Chart |
News |
PowerRating), from the Implosion-5 List, is down for a sixth straight day (this market is also working out of an Off The Blocks short entry). What’s happened in the fallout from the boom and bust of volatile energy prices this year is a build up in heating oil inventories that now stands about 22% above last year’s levels according to the American Petroleum Institute. This is also the time of year when refiners begin shifting from gasoline production to heating oil production in preparation for the winter months. Heating oil also had heavy volume late last week as the market declined, a negative sign.
In the same “heating fuel†category as HOQ1, natural gas
(
NGQ1 |
Quote |
Chart |
News |
PowerRating) opened at its Pullback Off Lows trigger and is off more than 5.5%. Prices in this contract are at a one-year low.
In the currencies, Japanese yen
(
JYU1 |
Quote |
Chart |
News |
PowerRating) are triggering out of a Pullback From a 1-2-3-4-5 Lows setup for a second day as they setup to test recent contract lows, down .0036 at .8023.
Silver
(
SIU1 |
Quote |
Chart |
News |
PowerRating) is triggering out of its Pullback Off Lows setup in an expansion-bar outside day. Occurring just off its lows, this is a bearish indication.
As mentioned in Friday’s Mid-day Alert and Recap, cotton was primed for a same-day Turtle Soup reversal today as it tried to find a bottom. This morning, cotton gapped lower and has triggered a Turtle Soup reversal at the prior, July 3 low at 40.61 and is up slightly on the session at 40.95.