What Killed The Early Rally
A first-half rally attempt petered out as index futures succumbed to selling
pressure into the close. Many fears are continuing to weigh down the larger
market, with shipping woes, war fears, and weak economic data all playing their
part in reversing what had been a solid rally off of the 11:10 AM EDT lows.
Dow Futures
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below the 7500 level, while the S&Ps
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below 800. Both contracts did bounce slightly into the close. Nasdaq 100
Futures
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The last-half action in the indices triggered a flight into the bond market,
with 10-year Notes
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Treasury Bond
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Energies rose again amid more uncertainty regarding the
US government’s
intention towards war with Iraq, with Crude Oil
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per barrel to 29.75, again flirting with the lofty $30 mark. Gasoline
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with Heating Oil
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Monday in the green.
Grains rebounded from Friday’s downer, with Wheat
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1/2 points to 381 3/4, in addition to Corn
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points and apparently stabilizing at a key retracement level. Soybeans
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Bean Oil
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The US dollar
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headed south, closing down and slipping back below the 50-day moving average.
Inversely, the Euro
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were able to gain against it, but the Japanese yen
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British Pound
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weakness. Canadian dollars
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In softs, Cocoa
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tension escalated again, with talks breaking down, resulting in gunfights between rebels
and loyalists. Coffee
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average on good upside range, while Orange Juice
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implode, down 0.85 at 92.60. Cotton
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after Friday’s probe lower, and Sugar
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Pork Bellies
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with Lean Hogs
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additional support of a trendline. In the rest of the meat complex, both Live
Cattle
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second consecutive day, closing at their respective lows.