Cheaper Utility Bill

  • February 14, 2001
  • Marc Dupee

Natural gas
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futures dived today as forecasts for warmer weather eased concerns about
supplies that remain 25% below year-ago levels. Notably, nat gas futures failed
to rally when weekly figures from the American Gas Association were released
midway through the session and showed a drawdown in stockpiles that was
in-line with expectations. The March contract closed .509 lower at 5.510. 

Natural gas also
registered an outside day at low, which is generally a strong sign of more
movement in the direction of today’s breakdown. Today’s pattern also represents
an upside-down cup and handle. While there is likely to be some reaction to
today’s two-month low, Turtle Soup Plus One Buy setup, and in-line AGA
fundamental data tomorrow, the reaction could be muted and 5.750 will act as
strong resistance. 

March crude oil
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futures rallied for a scalp trade out of its
Pullback From Highs
signal, then took their cue from the declines in natural gas and other contracts
in the energy complex. Crude closed .68 lower at 29.68,

heating oil
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In stock index futures trading, tech traders kept their eye on the the semis,
which were the only sector up by more than 1% for the first half of the stocks
session, after Applied Materials
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manufacturing equipment, beat earnings expectations. Strength in the semis bled
over into Internets, computer technology and networkers to stage a one-day
reversal of fortunes in index futures. Nasdaq 100 futures
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closed 90.00 higher at 2316.00, while blue chip index futures slipped. S&P futures
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closed 6.30 lower at 1319.80 and Dow futures
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10,833.0.

Hurting the blue chips, AT&T
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information in a recent Securities and Exchange Commission filing. The omission 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 rather
than distribute stock to shareholders. The
actions are just the latest in a series of problems that have plagued the
number one long distance company and resulted in three earnings guidances lower
in recent months.   

March cotton
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open and rallied for a third consecutive day out of a Turtle Soup Plus One
setup after striking a one-year low Feb. 9. Cotton closed 1.92 higher at
61.45. A marketer of cotton, Dunavant, impacted the market by
claiming that the U.S. Department of Agriculture estimate was too high with
its world cotton figures, due to the USDA’s miscalculation of the Chinese
crop. 

In livestock, April lean hogs
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rallied 1.200 in a wide-range bar to close at 58.600. If hogs can convincingly
fill the gap at 59.375, they could nullify their developing head-and-shoulders
pattern. Mad cow disease could play a role, as pork is seen as a substitute
meat.