Oiling Up

A confluence of supporting factors are continuing to
support the energies. The weekly
American Petroleum Institute’s (API) report, released after Tuesday’s close, showed an
unexpected drop in stockpiles of both crude and distillates and bodes poorly
for prices moderating anytime soon. The Israeli-Palestine conflict, a looming oil workers strike in
Venezuela, steady US demand, and early cold weather should leave few willing to
hold short positions. November heating oil
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rose to the Momentum-5
List
, and crude oil and unleaded gasoline each registered on the New 10-Day Highs List.
These contracts also closed on their highs Tuesday.

An earnings warning by Lucent is extending the negative
shadow that has been cast over the market for the entire month of September.
Stock index futures are numbers one, two and three on the Implosion-5 List
and are continuing to slump Wednesday.

Also from the Implosion-5 List, December soybean oil
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is down, and along with the
New 10-Day Low
reading from soymeal 
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, -1.1 to 167.5, the
signals are showing weakness in the soy complex. (Notice, however, that wheat is
still strong and is the leading contract on the Momentum-5 List). 

In the currencies, Swiss francs
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and the British pound
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are gaining as a kind of a flight-to-safety play as traders worry about
continued strength in the dollar while continuing to doubt the euro. Â