Momentum-5s, Working Out

  • October 19, 2001
  • Marc Dupee

Contracts from the Momentum-5
List are working out, making nice gains. December wheat
(
WZ1 |
Quote |
Chart |
News |
PowerRating),
dollar index futures
(
DXZ1 |
Quote |
Chart |
News |
PowerRating), and November orange
juice
(
OJX1 |
Quote |
Chart |
News |
PowerRating) are all higher and are making good on Off The Blocks
 long entries. 

Going the other way against the dollar index, the
most heavily weighted currency in the index’s basket, euro FX futures
(
ECZ1 |
Quote |
Chart |
News |
PowerRating),
and the
British pound
(
BPZ1 |
Quote |
Chart |
News |
PowerRating) are down after triggering out of Pullback
From Lows setups. The British pound was one of the contracts featured in
last night’s Nightly
Futures Traders Reports as “looking heavy out of its bearish
flag/pullback from a one-month low formation.”

T-bonds
(
USZ1 |
Quote |
Chart |
News |
PowerRating) and
10-year notes
(
TYZ1 |
Quote |
Chart |
News |
PowerRating) are also on the M-5 List, but have been
mentioned in the past two evenings’ Nightly
Futures Traders Reports as having the potential to fail up at their
current levels in the area near their contract highs, possibly in a (same
day) Turtle Soup sell pattern. Although T-bonds missed the high mark of 107
11/32 to trigger the Soup Reversal by four ticks this morning, both are down
and their outside bar at a high setup suggests the market could continue to
sell-off. 

December lean hogs
(
LHZ1 |
Quote |
Chart |
News |
PowerRating) have plunged off quadruple tops,
sinking twice the distance of their peak-to-valley ranges — the 200% levels
in red on the chart (see my Defining
Reward/Risk Ratios With Chart Setups), the completion of a measured move.
Now pulling back, hogs have retraced to Fibonacci ratios of their recent
plunge and failed to fully close, let alone close above, the
10/15 gap, a sign more downside is in store. Hogs also register 1-2-3-4
Pullback From Lows setups today. Two possible areas to short from are at the
Fib resistance levels specified above in the 50.800 to 51.00 area.
Alternately, the Pullback From Low is triggered on a move below today’s
low. 

The following chart shows downside objectives reside in the 46.225 to
47.600 area for hogs.

 

February 2002 pork bellies
(
PBG2 |
Quote |
Chart |
News |
PowerRating) and December
live cattle
(
LCZ1 |
Quote |
Chart |
News |
PowerRating) are in similar setups to hogs. 

Going the other way,
December

copper
(
HGZ1 |
Quote |
Chart |
News |
PowerRating), from the
Implosion-5 List and the
New 10-Day Low List, is off to new contract lows and is also making good on
an Off The Blocks
short entry.