Coffee Brews
July coffee
(
KCN1 |
Quote |
Chart |
News |
PowerRating) is having its most
explosive day in months, rallying out of what is essentially a two-day Slim Jim
formation. Markets that trade in narrow patterns often see explosive moves as a
contract returns to normal volatility from a low-volatility situation, such as
the two past days. Coffee has pulled back 30% from its 66.00 high and support is
holding at 63.50.Â
July cotton
(
CTN1 |
Quote |
Chart |
News |
PowerRating)Â is
turning around from new contract lows and is trading at the trigger of a Turtle
Soup (buy) setup, at the April 2 45.90 old 20-day low. Turtle Soup reversal
setups occur on the same day rather than on the following day as in the Turtle
Soup Plus One setups that we track on TradingMarket’s Futures Indicators
page.Â
From the Implosion-5 List,
corn is leading the way lower in the grains. Soybeans are also
an implosion market and have traded to a new low out of a descending
triangle.Â
June dollar index futures
(
DXM1 |
Quote |
Chart |
News |
PowerRating) are rallying out of their Turtle Soup Plus One Buy
setup.Â
As
Nasdaq 100 futures
(
NDM1 |
Quote |
Chart |
News |
PowerRating) tick to intraday lows,
T-bonds
(
USM1 |
Quote |
Chart |
News |
PowerRating) are rallying to contract highs. There appears to be a
direct translation into bonds as tech falls in a flight-to-safety move. The move
higher in bonds and rallies in the defensive, basics sectors (e.g., oil, oil
services, and forest and paper products) demonstrates persistant skittishness in
equities.