Cocoa Soup?
Cocoa
(
CCH1 |
Quote |
Chart |
News |
PowerRating), from the Momentum-5
List, is extending its parabolic run and also rallying out of a Pullback From Highs
pattern. Look for potential short covering later in the day and a potential
Turtle Soup Reversal (sell). A Turtle Soup Reversal occurs in the same day
rather than on the following day as in the more frequently referenced Turtle
Soup Plus One setup. Traders will likely be unwilling to go home long the
weekend at overbought, high levels and with reports coming out that the mid-year
harvest from Ivory Coast may not be as bad as forecast. Cocoa is up 44 at 1048.
Grain contracts are filling out the Implosion-5 List
roll and wheat struck a
New 10-Day Low. Traders are looking at the ideal growing conditions in
Brazil, the world’s second largest producer of soybeans and how a large South
American crop will likely (continue to) weigh on prices. Soymeal
(
SMH1 |
Quote |
Chart |
News |
PowerRating)
continues to lead the way down here, down 2.2 at 167.2.
Unleaded gasoline
(
HUH1 |
Quote |
Chart |
News |
PowerRating)
is on posting on the
Momentum-5
List and is setup in a cup and handle pattern. Gas is also on the 6/100 Low Volatility
List, so watch this one to make a larger than normal move as its volatility
reverts to the mean. Other supporting technical data for the upside
argument include a Pullback From Highs
setup in March crude oil
(
CLH1 |
Quote |
Chart |
News |
PowerRating).
Three down signals from the
Futures
Trend Matrix gave the early clue that stock index futures could decline.
Nasdaq 100 futures
(
NDH1 |
Quote |
Chart |
News |
PowerRating),
S&P futures
(
SPH1 |
Quote |
Chart |
News |
PowerRating), and
Dow futures
(
DJH1 |
Quote |
Chart |
News |
PowerRating) are all lower but rebounding slightly from
lows.