Telephone Rings Dow Futures

  • February 14, 2001
  • Marc Dupee

AT&T
(
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PowerRating) said it “omitted” financial
information in a recent Securities and Exchange Commission filing which will
delay the transferring of shares from the parent to its wireless division. It
also said it would sell more than $3 billion in stock to pay down debt. The
actions are just the latest in a series of problems that have plagued the number
one long distance company: AT&T has guided earnings lower three times in
recent months and is splitting into three divisions in an attempt to revamp a fledgling
stock price. AT&T is one of America’s most widely held stocks.

Shares of  Telephone are the biggest decliner on the
Dow and the negative sentiment is spilling over to the other telecom component,
SBC Communications
(
SBC |
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PowerRating). Declines by these two are leading the Dow and Dow futures
(
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lower, now down 98 at 10,845. 

Energies are trading in
setup zones. Both March crude oil
(
CLH1 |
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PowerRating) and unleaded gasoline
(
HUH1 |
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PowerRating)
are trading at their
Pullback From Highs
entry points, the high of day three, the low-bar day. A global task force
forecast energy consumption to rise 50% over the next 20 years. 

March cotton
(
CTH1 |
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PowerRating) gapped
open and is rallying for a third consecutive day out of a Turtle Soup Plus One
setup after striking a one-year low Feb. 9.  

Cocoa
(
CCH1 |
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PowerRating), from the Momentum-5
and Pullback From Highs
lists, is setting new intra-session highs and breaking above yesterday’s high,
and is now trading at break-even levels.

Orange
juice
(
OJH1 |
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PowerRating) is trading on its highs of the session and at a Pullback
From Highs trigger, (yesterday’s high, which corresponds with a few ticks
above the high of the low-bar day). OJ has the potential to make a larger-than-normal move, a setup implied by its10/100
Volatility Explosion reading.