Heating Oil Revs Up
Following through on its gap to a new high, heating oil
is extending to a new contract high, making good on its Momentum-5
List reading. The market is still focusing on the supply situation which is
38% below levels from one year ago and down as much as 50% in the Northeast, the
major consuming region. The fear remains that there will be insufficient quantities to meet heating demand in the event of a harsh winter.
One way to participate in hot momentum markets is with
the
Off The Blocks
method. This technique gets traders in on markets as they accelerate to the
upside with limited risk.
There were lots of futures on the New 10-Day Low List,
which also registered new 20-day lows. This resulted in an unusually high number
of Turtle Soup Plus One Buy
setups, all of which are working out at this point. Wheat, cocoa, gold,
coffee, and pork bellies are all higher and making good on their reversal
signal.
Finally, cotton, another Momentum-5
List member, is trading up slightly and on its highs in a flag
pattern, lending the December contract a positive bias.