The Symmetrical Yen
As Dave Landry is traveling to attend Tony Saliba’s
seminar in Chicago, Futures Editor Marc Dupée is writing the Futures Outlook
tonight. Due to network problems, charts are unavailable.
Notice that the pullback in the June Japanese yen
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JYM1 |
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PowerRating)
from January 17 through February 6 is symmetrical with the pullback just ended
yesterday. Both are very close in time, 13 or 14 bars, and 13 is a Fibonacci
number. Today’s close below yesterday’s high-bar low triggers a pullback short
entry signal. Finance Minister Kiichi Miyazawa
implied that Japanese policy makers want the yen to weaken–albeit slowly–to
help the country export its way to economic health. The overall trend here
appears down.
June dollar index futures
(
DXM1 |
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PowerRating) gapped below the neckline of a
head and shoulders top. Such breaks can be significant so look for a shorting
opportunity here.
July soybeans
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SN1 |
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PowerRating) failed to mount a
significant rebound out of a Turtle Soup Plus One Buy today. With the contract
logging an inside day at a significant low, consider short entry triggers.
Soybean oil
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BOK1 |
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PowerRating) closed at a new contract
low and on its lows. Look for this Implosion-5 List
leader to probe new lows.
July cocoa
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CCN1 |
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PowerRating) ran into resistance in the
1000 area and still has work to do on the downside out of its bigger picture
head and shoulders top.
With this market extremely oversold and lower interest
rates suggesting that the economy will re-inflate, the Turtle Soup Plus One Buy
setup in cotton
(
CTN1 |
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News |
PowerRating) provides
a good, risk-defined reversal (long) play.