Will Japan’s New PM Perform?
Futures Editor Marc Dupée will be writing
the Futures Outlook while Dave is away. Dave returns Wednesday.
Traders continue to digest Monday’s speech
by Japanese Prime Minister Koizumi where he promised to curb government debt and
eradicate bad loans at banks. Although his first policy speech was short on
details, enthusiasm for the so-called “reformist” and the much-needed
changes he may implement remain high. That brought buyers back into the market
to leave the market closing slightly down, but where it opened, on the high of
the session. This left a long tail-on-high formation and suggests further upside
for the
Japanese yen
(
JYM1 |
Quote |
Chart |
News |
PowerRating).
Cotton
(
CTN1 |
Quote |
Chart |
News |
PowerRating) is
set up in a Turtle Soup Plus One Buy
formation. Look for a reversal in this contract out of its consolidation
on low pattern.
July sugar
(
SBN1 |
Quote |
Chart |
News |
PowerRating) is the
leading contract on the Momentum-5
List and formed an outside day on its high, a constructive development. Look
for a buying opportunity in this market. One could enter on a traditional Pullback From Highs
entry, on a 1090
Open, or on an Off The Blocks
entry.
Also in the softs, coffee
(
KCN1 |
Quote |
Chart |
News |
PowerRating) is a Momentum-5
market, making the later two entry strategies viable as traders continue to
cover shorts ahead of the Brazilian winter.
Similar to sugar,
June lean hogs
(
LHM1 |
Quote |
Chart |
News |
PowerRating) have two signals working for it, only to the
downside: hogs are in the fourth day of a
Pullback From Lows
setup and are on the Implosion-5 List.
This contract could see more downside out of this set up.
