Why Another Rate Cut May Not Help
Stock Index futures sold off, fueled by speculation of
yet another impending rate cut by Alan Greenspan and the FOMC, signaling that
the U.S. economy may not be turning around as quickly as it hoped it will.
Nasdaq 100 futures
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two-month uptrend intact. S&P futures
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of its trend channel, losing 21 points to 1139.50, with the Dow futures
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Treasuries were bolstered by the flight out of the
indices, with T-bonds
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’31, but closing for the second straight session under par, while 10-year
notes
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instruments remains to the downside, however, as both have suffered significant
damage on the way down from their October tops.
Cocoa
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high following a strong run. The contract is hitting the 38.2% retracement of
the October low to the November high and fell 25 points in Monday’s session.
Sugar
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moving average, its first real sign of weakness in weeks. March coffee
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Orange juice
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a bounce off its 50-day moving average, gaining 1.40 to 91.50 following Friday’s
narrow-range bar. The March cotton
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the end of its run, as it appears to be forming a slanted head-and-shoulders
top.
In the meats, feeder cattle
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recovering some earlier losses, gapped down and closed beneath its 20-day moving
average. Live cattle
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continuing its short-term downtrend since bouncing downward from the 50-day
moving average. Hog futures also exhibited technical weakness, with lean hogs
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possible head-and-shoulders top.
Corn
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Tuesday’s USDA release of supply and demand data. Wheat
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also choppy, and for the most part, thin in Monday’s trading. News of Egypt’s
proposed tender could bolster the contract — if it materializes. Soybeans
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soy meal
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double bottom on its chart. Rounding out the group, soybean oil
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average. Outlook for demand in this commodity remains bullish for the long-term.
Currency contracts traded in a mixed fashion, with the December dollar index
futures
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to stage a retest of the November 23 high after bouncing off a 50% Fibonacci
retracement. The British pound
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0.0004 to 1.433 on the day. Euro FX futures
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U.S. dollar, but is trying to mount a challenge on its downward trendline. The
Japanese yen
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Canadian dollar
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as if it is trading in a low-level cup-and-handle on the daily chart, exhibiting
the possibility of another push to the upside.
After Friday’s gains that were for the most part attributed to short-covering,
NYMEX energy contracts were down across the board on Monday, with the exception
of the natural gas
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Crude oil
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OPEC and non-OPEC players to lower production outputs and speculation of
whether any agreement would be followed by the participants at all. Heating
oil
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pullback from low for the fourth consecutive day, and unleaded gasoline
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