Gas Re-Ignites
The leading contract on the
Momentum-5
List natural gas
(
NGZ0 |
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PowerRating) went
ballistic for a second day, closing at yet another all-time record. Nat gas
dipped in the first half of the session while awaiting weekly storage statistics
from the American Gas Association (AGA). Once the industry group released its
figures, nat gas rallied above Tuesday’s high and out of an intraday
cup-with-handle pattern to make good on an Off The Blocks
set up and close up .249 at 6.265, a new
all-time high. AGA figures showed stockpiles remain 9% below last year’s levels
as forecasts for cold in major consuming regions fueled this market’s rally.
Other contracts in the energy
complex (also with Momentum-5
readings) rallied following Tuesday’s weekly API report on stockpiles. The API
also showed lower stockpiles following recent cold weather and a noticeable draw
down in heating oil. December crude oil
(
CLZ0 |
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PowerRating),
 heating oil
(
HOZ0 |
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PowerRating), and
unleaded gasoline
(
HUZ0 |
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PowerRating) all rallied more than 2%,Â
In a knee-jerk reaction, March sugar
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PowerRating)
rallied after hitting its lowest close since July on Tuesday. Reports of tenders
from Tunisia, Iran, and Taiwan demonstrated steady world demand. The market is
also concerned about potential frost damage to the cane crop Louisiana.
Wednesday’s move could be a
temporary reaction rally and a good place to look to get short: although sugar
gained .37 to 9.10 (4.24%), it remains pressured, evidenced by its standing on both the Implosion-5
and Pullback From Lows
lists
Coffee
(
KCZ0 |
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PowerRating)Â remains under high pressure, dipping to fresh
contract lows to continue making good on its Implosion-5 List
reading. December closed 1.10 lower at 70.30 and picked up downside steam after
the Green Coffee Association said stocks in warehouses at a dozen major port
warehouses declined by 3.9% to 6,022,702 million bags. This contract remains
explosive as suggested by its Multiple Days Low
Volatility reading.Â
Orange
juice
(
OJX0 |
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PowerRating) lapped above its (Jeff Cooper) 1-2-3-4
Pullback From Highs
trigger (the high of the low-bar’s high), rallying to a high of 76.00 before
closing up .80 at 75.40.
January pork bellies
(
PBF1 |
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PowerRating) did not follow through on a two-day rally as traders focus on CME storage data which
came in much stronger than expected. Bellies finished down 1.775 to 62.850.
December lean hogs
(
LHZ0 |
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PowerRating) sold off early in the session, recovered
to spike a new 20-day high, leaving an intraday Turtle Soup setup. Unable to
progress, hogs fell off highs and closed down .450 at 54.100.