Imminent Threat Bonus For. . .
A late-afternoon dispatch from unspecified US officials,
citing an “imminent…terrorist threat” that put US military
installations in the Middle East on the highest “Threatcon Delta”
alert rattled markets late in the session. The announcement came one day
after indictments were handed down for a bombing in Saudi Arabia five years ago
that killed 19 military personnel.Â
September T-bonds
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point in the last 30 minutes of trading, trading to a six-week high as stock index
futures sold off. Crude oil also rose in late-session trading and closed near its
highs. Treasury products often rise in times of international crisis or
uncertainty as investors seek a safe haven.
But bonds were already up on the session as the
debt market had taken an “In Greenspan We Trust” attitude, reacting
positively to 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 fixed interest income does not erode with stable prices.
Both T-bonds and
10-year notes
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List and made good on Off The Blocks
setups, adding 28/32 and 16/32, respectively.Â
Going the other way,
Dow futures
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reading and on an Off The Blocks
short entry. Dow futures closed down 75.0 at 10,680.
In the metals,
silver
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setup, but erased gains and finished at a contract low, closing down
2.0 at 430.0.
Energies lapped higher, reasserting the downside
momentum exhibited by their Implosion-5 List
readings, but then got a bounce on the Gulf “imminent threat”
announcement. August crude oil
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October sugar
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new contract high. As mentioned in recent Futures Recaps and Mid-day Alerts,
sugar has been showing that it could make a big move by registering on the
Multiple Days Low
Volatility List AND has indicated direction by appearing on the Momentum-5
List for the past three days. Sugar closed up .21 at 9.26.