Saber-Rattling Rally
In a broadening of the war on terrorism, President Bush encouraged Iraq
to allow inspectors access to domestic facilities to verify the country is
not making weapons of mass destruction. While no direct ultimatum was
leveled at Sadam Hussein, Bush commented that his father’s adversary in the
1991 Gulf War would “find out” if the dictator’s regime failed to
comply.
Although its oil output has been hampered by sanctions, Iraq is one of the
world’s major suppliers, producing nearly 4% of global needs. Military
conflict in Iraq could spur a price escalation similar to that seen in the
conflict 10 years ago. Oil reached $40 a barrel during the conflict that
ousted Iraq from Kuwait.
January crude oil
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In a topsy-turvy morning that has sent T-bonds
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a price-finding mission between Monday’s last-hour high and a test of the
Nov. 20 low, the 30-year future has gyrated after an unexpectedly strong
consumer confidence number. Still, the contract has not been able to climb
above the 50% retracement of yesterday’s high, as it traces lower highs in a
Descending Triangle on the hourly charts.
Natural gas
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has triggered for a second consecutive day out of its Pullback
From Lows setup and is down 4%, or .126 at
2.570.
December
copper
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yesterday’s “low/close at 68.25” as suggested in last
night’s Futures
Trader’s Report but entry has been difficult in this Momentum-5
List market because of the gap openings today and in recent past sessions.
The market has held at the 38.2% or 50% retracement of the prior day’s low
to the following day’s high, so the observation looking ahead on the gaps is
to consider getting into gapping or lapping openings on a pullback to those
ratios.
December gold
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silver
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Multiple Days Low
Volatility plays and are both indicating direction by their
Implosion-5 List readings.
Finally, S&P futures
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conflicting signals this morning. The spooz initially triggered and made on
their
Turtle Soup Plus One
Sell signal this morning — declining 10 handles from the opening print. The
contract has rallied back as many points after finding support at 1152,
displaying the upside inertia from its Momentum-5
List reading.