Soy Ahoy!
What do you do when a commodity sector fills up and dominates the Momentum-5 List and also registers on the New 10-Day Highs List? Recognize the momentum and strive to find a defined-risk entry point.
This is what is occurring in the grains as the five major Chicago contracts are rallying in a momentum pulse after filling out the Momentum-5 List and scoring new 10-day highs. As pointed out in this space and in Futures Recaps, a change in the fundamentals has sparked heavy fund buying following a USDA report that mentioned reduced plantings of soybeans and a lower year-over-year grain carry over.
August beans
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Corn
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Nasdaq 100 futures
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PowerRating) are slightly higher and are currently tracing a tail after having logged a three-month low. This market is trading right below its Turtle Soup Plus One Buy trigger.
August gold
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Pork bellies
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Cotton is higher and demonstrating nascent signs of upside potential. Two days ago, cotton gapped higher and closed on its high, a constructive sign. Today, cotton is forming an outside day at a seven-day high in a bar similar to the one described above in soybeans (and corn) that preceded beans’ strong upside behavior.