Not Holding Back
December cocoa
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PowerRating), as well as other softs and fibers contracts
traded at the New York Mercantile Exchange, is not holding back
despite trading in a shortened session due to dislocations caused by the World
Trade Center crises. Note that the contract has been moving up the ranks on the Momentum-5
List and is now the second strongest. Cocoa made good on an Off The Blocks
entry this morning. As pointed out in a Futures Recap last week, cocoa has
accumulated a critical mass of more than five expansion bars, gaps or laps in a
shortened time frame (shorter than 21 days), identifying it as a potential
breakaway market. The chart is now showing 10 of these signs in 18 days.
December Nasdaq 100 futures
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PowerRating) remain on a tear and provided
entry in a tail pattern left on the morning low after a gap-up opening.
Notice this market was overbought before today’s open — as evidenced by the
four down-pointing arrows on the Market
Bias Indicators Page. Today’s rally to a high of 1310 (from 1249.00), leaves
this market even more overbought. Although a characteristic of a bull market
is to get overbought and stay overbought, watch resistance and a pullback
out of a forming head and shoulders pattern.
Also from the Momentum-5
List,
silver
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PowerRating) is made good on a Off The Blocks
entry and rallied as many as 6 before pulling back.