Put This Pattern To Use
We talk about it often here on TradingMarkets and screen
for it daily on the Futures Indicators Page, but the pattern continues to work.
Today we saw Turtle Soup Plus Ones work out on both the long and short
side.
December
live cattle
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plunge with a limit-up up move today. Six days of selling that drove prices
to contract lows finally gave way to buying today as the futures/cash spread
got too far out of line. The fast move up still provided entry for the
nimble at the Turtle Soup Plus One Buy
trigger at the prior 20-day low in the 67.00 area. Lives closed up 1.500 at
67.425. November feeder cattle
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Going south, the currency futures used by our
Northern Neighbors triggered on the opening when they traded at the previous
20-day high.
Canadian dollars
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falling .0025 to make good on their
Turtle Soup Plus One
Sell setup.
Traders continued adding to bond positions as new
anthrax cases, choppy earnings reports, and reports of declining industrial
production added to uncertainty and bolstered the flight to safety bid in
the “risk free” rate represented by Treasury derivatives. Both T-bonds
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10-year notes
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Highs continuation moves with the contracts adding 10/32 and 7/32,
respectively.
Stock index futures continued displaying signs of
momentum. After opening higher and tumbling on another round of anthrax
scares, all three contracts recovered to close in the green. December Nasdaq 100 futures
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closed above the trigger of an ascending-triangle pattern a constructive
sign.
Energies sold off ahead of tonight’s API weekly inventory reports.
November crude oil
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heating oil
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each registered outside days down two days ago and crude and heating oil nearly
registered outside days down again today, signals that strongly suggest
additional lower prices.
Natural gas
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gapped open and was the biggest mover on a percentage basis, up 9.00%, ahead
of tomorrow’s AGA inventory report. Nat gas closed up .214 at 2.592.