They’re Still Talking About It
The Organization of Petroleum Producing Countries is
concerned about a 20% drop in oil prices in just one month, but are claiming
there will not be an emergency meeting to discuss how to shore up prices.
Still, OPEC is concerned about the rapid descent in oil prices and will
doubtlessly continue talking “informally” about what they should
do ahead of Friday, a key day. Tomorrow marks the tenth day that a
“basket” of OPEC crude oils trades at, or below, $22 a barrel.
OPEC has an agreement to cut production after such a milestone.
Energy traders bid up the price of a barrel of crude
in anticipation of a cut in OPEC output. November crude oil
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rallied .55 to 2.49, and heating oil
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cutback from OPEC is a politically questionable move given recent fragility
in global markets.
Natural gas
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rallied for a third day after the weekly AGA report showed a
lower-than-anticipated build-up of inventories. Nat gas has arguably
completed a five-wave pattern down to contract lows struck just days ago and
added 4% to close up .094 at 2.414.
December Nasdaq 100 futures
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entry in a tail pattern left off the morning low after a gap-up opening.
Notice this market was overbought before today’s open — evidenced by the
four down-pointing arrows on the Market
Bias Indicators Page. Today’s rally to a high of 1310 (from 1249.00), left
this market even more overbought, inciting a selloff from double tops that
erased two-thirds of the rally that had begun to make headway into the gap
left on September 17.
The British pound
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List, rallied despite the Bank of England’s quarter-point rate cut. This
contract remains in a steady up trend and inched .0018 higher to 1.4708.
December cocoa
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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.
Also from the Momentum-5
List,
silver
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entry and rallied as many as 6 before pulling back to close up 3.0 at 466.5.
October
live cattle
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strong cash prices.