NazDogs Roll Over

  • March 9, 2001
  • Marc Dupee

June Nasdaq 100 futures
(
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PowerRating) tumbled after
Intel warned for the third straight quarter that it would miss earnings
expectations, hitting speed-bump, limit-down trading-curb levels and rolling
over to a new low before coming up
for air.

But this contract is building an intraday shelf
just below the Turtle Soup Reversal level. The Turtle Soup reversal level is the
prior 20-day low, March 1’s 1872. In this setup made public by Connors and
Raschke in Street Smarts available on TradersGalleria,
traders fade the new low and go long at that level with the protective stop
going below today’s intraday low of 1848.

The June Spooz
(
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PowerRating) also tanked to limit-down
levels and are building a shelf above the intraday low of 1247. Dow futures
(
DJM1 |
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PowerRating) also plunged, as Intel is a Dow component.

Stock index futures got no help from this morning’s jobs
report, which showed non-farm payrolls increased more than expected and wages
rising slightly. This indication of a tight labor market — unemployment remains
at 4.2% — and rising labor costs means the Fed is less likely to cut
interest rates as aggressively as some would like.

Interest rate futures tumbled on the jobs report,
cascading from their 105 10/32 high in the minutes immediately following the
report. Both T-bonds
(
USM1 |
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PowerRating) and

10-year notes
(
TYM1 |
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PowerRating) are trading on their lows of the session,
down 10 ticks each. 

Currency futures initially tumbled on the new economic
data and reduced likelihood of aggressive Federal Reserve interest rate cuts but
have come back to nearly unchanged levels. 

Canadian dollars
(
CDH1 |
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PowerRating),
however, from the Implosion-5 List,
continue to be pressured and are down .0010 at .6459.

Momentum-5
List leader soybean oil
(
BOK1 |
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PowerRating) continues an interesting pattern
of hitting new highs on lap-up openings and selling off throughout the
session.