Sugar Pops
Marc Dupee wrote this Installment
Sugar rallied for the sixth time in eight outings. As mentioned in Friday’s
Outlook, the October 10 gap above the August through mid-September consolidation
range is a very constructive sign, as is the contract’s expansion range bar
Monday and its Momentum-5
List reading. Although this contract may be overextended, consider getting
in on this market using the Off The Blocks
approach, or monitor this one for a pullback-long entry.Â
Also notice how when sugar gets in rally mode, it does not pull back much
after opening. A survey of recent data shows that in 90% of the days when sugar
is in this situation, sugar will pull back no more than 12 ticks if it is going
to close positive on the day. In 30% of these instances (where it is on the
Momentum-5 List and above its 10-day moving average), the opening tick is the low
tick of the session. These parameters help define your stop and make the 1090
Opening Method an ideal entry technique for this market.
Also in the softs, December coffee
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PowerRating) set up in a Turtle Soup Plus One
Sell pattern. A move below 84.40 is the trigger for a sell on this contract.
I would use the 85.65 level as a protective stop (rather than the 87.50 high),
which corresponds to Monday’s close and the September 13 high.Â
NASDAQ 100 futures
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despite losses in most of the biggest hitters on the Naz 100 cash. Unless there
is a bifurcation going on within the NDX, look for a continuation of
Friday’s impulse move. December S&Ps
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also show an upward slant in late-session trading Monday, boding well for a
concerted move of all three index futures.
Currencies are set up in reversal patterns. Despite European Central Bank
Dusenberg pulling away the last reason for euros not to go lower
(by implying the institution would not intervene in currency markets), near-Turtle
Soup Plus One buy setups in Swiss francs
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new lows. Bolstering this prospect is a Turtle Soup Plus One
Sell setup in dollar index futures
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PowerRating). The euro is the most heavily
weighted currency in the dollar index and these currencies have the strongest
tendency to move in opposition to one another.Â
Trade Smart