Soupy Gasoline Staging A Comeback
Unleaded gasoline popped open to a new high but is
pulling back. The pattern of hitting a new 20-day high–where a new high hasn’t
been struck in the past four days–and then reversing, is one that can be
exploited in a strategy know as the Turtle Soup and made public by Larry
Connors and Linda Rashke in their book Street Smarts, available through M.
Gordon Publishing. This strategy is similar to the Turtle Soup Plus One
reversals calculated daily on the futures indicators page but occurs on the same
day rather than the day following the failure of a 20-day high or low.
Still, strength in crude (from the Momentum-5
List) and heating oil–both trading at new highs–is pulling gasoline higher
and unleaded gasoline looks like it will push back to the upside.
Four contracts are on the Turtle Soup Plus One
Sell list Friday and three of them, cocoa, natural gas and December wheat
are making good on their signals. Rumors of gunfire and tank movements in the
Ivory Coast capital sparked a panic that jolted cocoa 52 points higher Thursday. Cocoa is the world’s leading producer of cocoa and remains near 30-year lows despite a coup last December that creates some uncertainty about steady flow of exports.
But with no official confirmation of the unrest forthcoming, traders and
speculators are selling.
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Grain contracts from the Implosion-5 List
are moving down. Corn and beans are testing new contract lows.
Pork contracts are moving sharply to the upside. Pork
bellies and lean hogs are both up nearly their daily limit and lean hogs are
also trading at a contract high.