Chocolate Thunder
Cocoa followed through on yesterday’s best close in a
month and volume up-tick to close at another monthly best. Traders cited a
relative shortage of cocoa and higher prices at ports in the world’s major
producing country, the Ivory Coast.Â
Cocoa’s gap higher, drift down without filling the
morning gap, and strong finish, leaves a bottom island base and potential
platform upon which to launch a rally off its lowest level in decades. The
771-774 area remains a key “cluster” resistance area. A break above
this level is constructive. March cocoa
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Stock index futures gyrated on both sides of breakeven.
The Nasdaq 100 Index
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the index down a stunning 25%. But the 7.50 higher close to 2282.50 was not what
you might characterize as a blowout relief of an extreme oversold condition.
Although their big gap-down move yesterday left them too
low to trigger their Turtle Soup Plus One Buy
setup, S&P futures
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higher to 1288.00.Â
Dow futures
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stock index futures, rallying on the hope that DJIA components Wal-Mart and Home
Depot will impress with last-minute sales holiday sales, by an impressive
comeback in JP Morgan, and by a move into basics (paper, chemicals, and
softdrinks). The move in the Dow is noteworthy because the average (and futures)
overcame a big disappointment from AT&T, down 9%, and a 5% loss in
IBM.Â
Besides moving into basic blue chips, traders also found
defensive refuge from tech in interest rate futures. From the Momentum-5
List, both
T-bonds
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ending up 9/32 each.Â
Traders swapped greenbacks for European currencies, sending the
March dollar index futures
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Swiss francs
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new 60-day highs. The collective move above key levels in these currencies
points to the chance for a secular change in the relative economic standings of
the US and the continental economies. Euro FXs, franc, and pound futures were
all on the
New 10-Day Low List with euro FXs and francs filling out the Momentum-5
List.
Natural gas
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continued to hit new highs, taking advantage of continuing cold in the
country’s midsection and lower-than-normal stockpiles of the heating fuel. The
contract has been tentative at all-time highs, gapping to records and selling
off during New York trading hours. February closed .304 higher at 9.250.Â
Soymeal
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gains out of its Turtle Soup Plus One
Sell setup, but finished strong in the final minutes to a record contract
close, up 1.4 to 193.8. The contract looks explosive due to its 6/100 Low Volatility
and Multiple Days Low
Volatility List
readings. Meal is also on the Momentum-5
List and set up in a bullish flag, implying further upside.