Turbo Twin Tails
Blue-chip stock index futures exploded after touching
down to recent lows, leaving tail bars often associated with a short- to
intermediate-term bottom.Â
Both
Dow futures
(
DJH1 |
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PowerRating) (Pullback From Highs List)
and S&P futures
(
SPH1 |
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PowerRating) (from the Implosion-5)
bled down to contract lows, before Dow futures, leading the Spooz by about five
minutes, did an about face and erased most of the session’s losses. Spooz did a
Turtle Soup Reversal, taking out the previous low before reversing. Turtle Soups
are similar to Turtle Soup Plus One setups and are strategies Larry Connors and
Linda Raschke brought to the public in Street
Smarts, available on TradersGalleria.
Signs that the economy is performing slightly better than
believed spurred gap-up openings in interest rate futures. Both
T-bonds
(
USM1 |
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PowerRating) and
10-year notes
(
TYM1 |
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PowerRating)Â had hit
New 10-Day Highs yesterday. Consumer spending was the highest in four
months, construction spending hit a 10-year high, and the National Association
of Purchasing Managers report was not as weak as many feared. Bonds bled lower
for the first half of the session, then surged back to the session’s high as
stock indices plunged to the lows of the day in a safety bid. USH1 closed 21/32
higher at 105 30/32, and TYM1 added 6/32 to 106 4/32.
In the currencies, the
March dollar index futures
(
DXH1 |
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PowerRating) weakened and European
currency futures rallied after the European Central Bank (ECB) left interest
rates unchanged. Lowered prospects of an early rate cut in the US also hurt the
buck. The DXH1 fell .71 to 111.29,
euro FX futures
(
ECH1 |
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PowerRating) added .00890 to .93220, and
Swiss francs
(
SFH1 |
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PowerRating) gained .0072 to .6066.
(
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PowerRating) closed with little change despite a low in Japanese
stocks and a cut to near-zero in short-term interest rates. A Turtle Soup Plus One Buy
signal may have helped, temporarily, prop up the yen. (
LHJ1 |
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PowerRating) rallied for the twelfth time in 11
sessions to new contract highs. Hogs are the leading contract on the Momentum-5
List. A cold winter has lowered the weights of hogs–reducing the total
supply of pork–to negatively impact the hog situation domestically.
Internationally, an outbreak of foot-and-mouth disease in the United Kingdom and
recent reports of an outbreak in Ireland are enhancing the appeal of pork as a
substitute meat. The mad cow disease scare also looms large over European meats.
Hogs are trading on the top of their morning range and made good on an Off The Blocks
entry.Â
March pork bellies
(
PBH1 |
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PowerRating) closed up .775 at
76.925 as well.Â
Soybean oil‘s
(
BOK1 |
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PowerRating) recent
lapping, gapping and expansion-bar chart signals indicate this that this Momentum-5,
New 10-Day Highs,
and Multiple Days Low
Volatility market could be a runaway. Bean oil added .2700 to close at
16.1400.
