Gas Bulls Giving Thanks To NE Cold

Forecasts for a cold Thanksgiving in the Northeast,
strong demand in the West, and rising tensions in the Middle East are
underpinning natural gas prices and have rocketed them to new all-time
highs. Natural gas prices continue to be one of leading contracts on the Momentum-5
List

Contract highs in the December contract (also from the
Momentum-5) and a 21-year high in January heating oil
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is
fanning the fire under natural gas as stockpiles in each remain significantly
below last year’s levels and users compete for the substitute heating fuel
products. Demand for electrical generation remains high in the Western states,
and fresh rounds of violence in Israel continues to support the energy complex.
Crude oil
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is also trading near contract highs, up .40 at 35.62.
Traders will closely watch Tuesday’s API and Wednesday’s AGA for a better
picture of inventories of oils and gas. 

In the grains, both
January soybeans
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and soymeal
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are trading
lower after registering Turtle Soup Plus One
Sell
signals. Soybeans and soymeal in particular have a bullish fundamental
story behind them. The European Union and Italy voted to at least partially ban
the use of bonemeal as an animal feed to mitigate the spread of mad cow disease.

In Monday’s Futures
Market Recap
I pointed out that weakness in foreign currencies implied that
December dollar index futures
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could rally. The DXZ also
registered on the New 10-Day High
and
6/100 Low Volatility
List
, implying a larger-than normal move. The dollar continues making
headway despite a severe market and an indeterminate US Presidential election.
The dollar historically rallies 5% after presidential elections. The DXZ0 is up
.47 at 117.70.

Newcomer to the Implosion-5 List,
the Japanese yen
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is contributing to dollar strength as is fresh
New 10-Day Lows
both Monday and Tuesday in the Swiss franc
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and euro FX
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Finally, in the softs, march 2001
coffee

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is setting new seven-year lows, making good on its Implosion-5 List
reading and down trend (see the
Futures
Trend Matrix
).