Energies Sizzle
Energy contracts are filling out the Momentum-5
List and are surging to new contract highs despite a declaration by OPEC
that it will raise output by 500,000 barrels a day. Heating oil continues to
lead the march higher, but all contracts are up at least 1%.
Rain in the central part of Brazil is improving the
prospect for healthy crops and sending coffee to a contract low. Coffee had
rebounded in a Turtle Soup Plus One buy setup but has been in a strong downtrend
(see the Futures
Trend Matrix) and had registered down momentum signals.
Disappoint cash prices in cattle continued to disappoint
as live cattle continue to descend 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.
IBM is following through on its breakout to an 11-month
high and working to ratchet up Dow futures, which are now trading at their
highest level since late April. The rally in big blue is also a net positive for
the S&Ps and are bolstering tech for a net positive result in Nasdaq 100
futures. All three stock index futures are on either the Momentum-5
List or
New 10-Day Highs List.