Sugar’s Seven Sisters

• June 7, 2001
• Marc Dupee

Sugar is forming a Pleiades pattern, a new setup I have
been developing. The Pleiades, or seven sisters, is a star constellation I used
to use (prior to cheap satellite navigation devices) to determine a yacht’s
position with a sextant while making ocean passages. The pattern reminds me of
the constellation. In essence, the pattern is a consolidation pattern where
several bars — up to seven – open and close at the same levels, forming
Doji bars, similar to small stars. A move in the direction of the recent break
and out of the “star” consolidation range is your entry and
directional cue.

In an intraday example of a Pleiades pattern, have a look
at September T-bonds
(
USU1 |
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News |
PowerRating) on the five-minute chart. Bonds started
higher this morning, but just prior to breaking down, traced seven Doji
(star-like) bars before breakout down out of their range and falling half a
point. 

 

 

August gold
(
GCQ1 |
Quote |
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PowerRating) is in day six of what appears to be a Pleiades
on the dailies. 

Cocoa
(
CCN1 |
Quote |
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News |
PowerRating) is hitting a new four-and-a-half-month
low out of a 1-2-3 Pullback From Lows setup. Notice how the pullback went back
to test the critical 950-960 area. Cocoa is down in part because of improved
forecasts for the Brazilian cocoa crop. 

August lean hogs
(
LHQ1 |
Quote |
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PowerRating) gapped open out of their Pullback From Highs
trigger and have pulled back to the trigger in a continuation setup. August pork bellies
(
PBQ1 |
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Chart |
News |
PowerRating)
are in a triangle following a bounce off lows.