10-Year Gush
Heating oil led the charge higher in energy futures,
striking a new 10-year high in an upward impulse in the oil patch that also left
crude oil and unleaded gasoline at contract highs. Heating oil stockpiles are at
a 24-year low, approximately 39% below levels one year ago and have traders
concerned that any build up in inventories will be insufficient to meet winter
heating demand.
October
heating oil
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HOV0 |
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PowerRating) and unleaded gasoline
(
ULV0 |
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contracts on the Momentum-5
List, rallied .0312 and .0225, respectively.
Crude oil
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natural gas
(
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PowerRating) gained .044 to 4.680.
Stock index futures were
also on the Momentum-5
List and rallied to new monthly highs. IBM followed through on its breakout to an 11-month high,
ratcheting up Dow futures, which closed at a four-month high. The rally in big blue
was also a net positive for the S&Ps and bolstered tech for a net positive result in Nasdaq 100 futures.
One way to trade futures and a technique looked at very
closely by many stock index futures traders in the pits is with pivots. September S&P futures
(
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PowerRating) took out
their pivot in the
opening 10 minutes of trading and rallied through the R1 and R2 levels to approach
a five-week spike high. (Click
here to review Dave Landry’s article on trading pivots). After nearly
matching the July 17 high, the S&Ps then pulled back to the R2 level, in a
move that demonstrates how resistance later acts as support. The SPs, from the
New 10-Day Highs List, were up as many as 15 before closing 4.90 higher at
1518.50.
NASDAQ 100 futures
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Dow futures
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In the grains,
November soybeans
(
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PowerRating) surged up 9 1/4 to 480 1/4 on concerns that hot dry
weather will stress crops. December
soymeal
(
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PowerRating) saw the best gains on a percentage basis +2.3% or 3.7
to 161.3, while soybean oil
(
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PowerRating) barely budged adding only .0600 to
15.740.
Disappointing cash prices in cattle continued to disappoint
as live cattle descended after dropping to a contract low
Friday. The October contract registered on the Implosion-5 List
and broke down from the neckline of a head and shoulder top Friday before
closing .450 lower at 85.050 Monday.
Rain in the central part of Brazil improved the prospect for healthy crops and
sent coffee to a contract low. Coffee has been in a strong downtrend
(see the Futures
Trend Matrix) and has recently been registering down-momentum signals on
both the Implosion-5 and New 10-Day Lows lists and ended 2.55 lower at 80.15.