Coffee Talk
Coffee rallied off contract lows as traders squared positions in anticipation of
possible retention plans from producing nations. Coffee hinted it could make a
big move off contract lows by signaling a Turtle Soup Plus One Buy
setup and finished up 3.3%, or 2.65 at 82.80.
There were several contracts that made New 10-Day Lows
as well as new 20-day lows to register Turtle Soup Plus One Signals. Cocoa was
the other soft market coming off contract lows to make good on its Soup
buy setup, breaking up to 814 before settling at 793.
The largest monthly drop in durable goods orders ever,
heartened traders basing decisions on interest rates. The steep drop provided
evidence that the Fed’s six short-term rate hikes since June 1999 have been
effective in slowing the economy. Recent economic report have even initiated
speculation that the Fed’s next move may be to cut rates. September T-bonds
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carried to new highs for a second day, adding 4/32 to 100 6/32.
The prospect of lower interest rates was also good for
stock index future. NASDAQ 100 futures
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Composite which rallied for a tenth straight day. NDU0 closed 63.00 higher at
3965.00, September S&P futures
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gained 50.0 to 11,235.0.
Following through on its gap to a new high, heating oil extended to a new contract high, making good
early on its leading position on the Momentum-5
List before October closed .0038 lower at .9440. The market is still focusing on the supply situation which is
38% below levels from one year ago and down as much as 50% in the Northeast, the
major consuming region. Other energy contracts also fell; crude oil
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All five contracts from the Turtle Soup Plus One
Buy list rallied with wheat, gold, and pork bellies also making good on
their signals. Wheat got going late in the session on ideas that the there could be problems with the European crop which would increase US exports.
