Volatility Drives Gasoline
Unleaded gasoline
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PowerRating) prices are higher on news that a
refinery in New Jersey shut down. Inventories of unleaded gasoline are already
9% below last year’s levels. The Jersey facility refines the cleaner-burning
reformulated gasoline required in designated metropolitan areas such as New
York. Unleaded continues rallying off its 50day moving average hit two days ago.
June crude oil
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PowerRating) is also
moving out to a three-month high out of an ascending triangle. This contract is
also now trading near the neckline of an inverted head-and-shoulders pattern,
portending a possible move back into the $30 range.Â
I received an email from member Cecil Chaudoir. Cecil has
been trading grains for many years and has intimate knowledge of these markets,
having been a crop duster and grains trader for years. Cecil informs me that
there is an “army worm infestation that is sweeping the Midwest is the
worst infestation in fifty years. The worm count is exceeding 50 worms per
square foot in some areas.” New crops will be affected and Ohio and Indiana
are already having problems. Thank you, Cecil! Grains are down slightly today.
Going the other way,
natural gas
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PowerRating), from the Implosion-5 List,
continues to threaten moving lower in what could be the resumption of its
measured move out of its four-month long descending triangle above. (For more on
calculating measured moves, see my article in the Futures Education section on
the subject).Â
Coffee
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PowerRating) is triggering out of its Pullback From Highs
setup in an outside bar that has taken out its pullback consolidation
range.Â
Also in the softs, cocoa
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PowerRating), which was
on the Momentum-5 List yesterday, is resuming its push higher in a nascent flag
formation.