Beans, Momentum Magic
If you were not already long the Momentum-5 leader, September beans
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PowerRating), there was opportunity for a play again this morning with an Off The Blocks entry. Beans gapped up this morning, cleared the opening range and are trading just off their year-to-date highs, rallying another six cents after triggering their OTB entry. This is the third day in seven that beans have rallied 10 or more cents.
This morning’s Pre-Opening Futures Market Outlook pointed out that momentum buying has been detected in the Commitment of Traders Report: “there has been active large trader (fund) buying in the past week with a net long position of 23,200 contracts, up 19,711 in just one week.â€
Dry weather during a critical growth phase for the crop as well as reduced planting and a lower grain carryover are also enhancing the bullish case in the grain.
Soymeal
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PowerRating), another Momentum-5 market, is also rallying and approaching year-to-date highs, but is leaving topping signals on the five-minute bar chart. Meal is trading at 273.4.
Euro FX futures
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PowerRating) have resolved (filled) the June 28 gap and are leaving a Doji bar, a sign of change, here appearing as the potential end of a three-day reaction off an all-time low.
Natural gas had the biggest volume of the nearby contract month yesterday in a very narrow range. The volatility compression and volume expansion is resolving to the upside. Nat gas is very oversold and has already achieved measured-move downside objectives from the spring highs (implying a reaction rally is in order). Nat gas’s 4%, or 1.32, move to 3.285 is its biggest in a month.
In the meats, hogs
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PowerRating) are tumbling from their parabolic precipice. Pork bellies
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