Benign Inflation Boosts Bonds
September T-bonds
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PowerRating) are trading at a six-week high as the
debt market takes an “In Greenspan We Trust” attitude following his
comments to the Senate Banking Committee this week that he doesn’t think
inflation is a serious risk. Long bonds tend to do better with low inflation
because their interest income does not erode.Â
Both T-bonds and
10-year notes
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PowerRating)Â are on the Momentum-5
List and are making good on Off The Blocks
setups.
Going the other way,
Dow futures
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PowerRating) are lower and making good on their new Implosion-5 List
reading and on an Off The Blocks
entry.Â
In the metals,
silver
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PowerRating) is making good on its Turtle Soup Plus One Buy
setup and is 2.2 higher after a tail at a contract low yesterday.Â
Energies lapped higher but are reasserting their downside
momentum exhibited by Implosion-5 List
readings in unleaded and crude oil.Â
October sugar
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PowerRating) is exploding to a
new contract high. As mentioned in recent Futures Recaps and Midday Alerts,
sugar has been showing that it could make a big move by registering on the
Multiple Days Low
Volatility List AND direction by its Momentum-5
List reading. Sugar is up .23 at 9.35.