Unsheathed Saber Rattles Oil
Movement of Kuwaiti troops in response to threatening
statements from Iraq’s President is having a carry over effect, extending Thursday’s 3% to 5% rally in the oil patch.
Energy contracts lapped lower but have been moving steadily higher throughout
Friday’s session. Energies have rallied every day since Tuesday’s API, which showed
domestic stockpiles at their lowest level in 17 years. The strong price action
in the oil patch has catapulted all four of the major energy contracts onto the Momentum-5
List. Heating oil is trading at a new contract record as the trade is
doubting that stockpiles will build quickly enough to meet winter heating demand
in the Northeast.
An analyst upgrade in tobacco stock Phillip Morris has
boosted the Dow component up more than 10% and its upward surge is pushing Dow
futures to a new three-month high.
Nadaq 100 futures traced a double-bottom, Turtle Soup
Plus One intraday reversal right at the June 1 gap. This move has (temporarily)
broken two days of downside momentum. Like all strong momentum markets, the Naz
dogs also pulled back and are exploding (intraday, 5-minute chart) out of a
1-2-3-4 pullback setup.
Coffee has is up 1.40 off multi-years and trading at the
prominent July 10 low. Although slightly longer than the standard 20 days in the
Turtle Soup Plus One Buy
set up, the pattern could pan out in a reversal off low move.