British Unit Retreats
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British pounds hit fresh multi-year lows as traders took the view that English
monetary officials will not raise interest rates and narrow the differential
between US and continental rates. The pound set up in narrow-range bars on lows
Monday and registered on the
Implosion-5 List,
signaling a potential move lower.
Participants also held the opinion that European officials
seem unconcerned with a deteriorating euro and a sagging
EuroFX
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PowerRating) which worked to drag down the pound to a close .0142 lower at
1.4570. Swiss francs
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PowerRating), from the Pullback From Lows List
also tumbled, losing .0071 to .5779. As European currency futures declined,
dollar index futures
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surged to contract highs, closing .75 higher at 112.15.
Stock index futures ended mixed.
Dow futures
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PowerRating) and Spoos
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PowerRating) closed marginally lower, and an
argument can be made that a two-year low on the VIX
(
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PowerRating) and a CVR VI
signal from the
Market
Bias Indicators Page restrained their progress. Tech stocks broadened and several
big cap Naz 100 stocks traded near their highs, including Oracle (ORCL), Cisco (CSCO),
Sun Micro (SUNW), and Intel (INTC), which worked to leave the slow creep up in the
Nasdaq 100 futures
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NDU0 |
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PowerRating) intact for a finish 17.50 higher at 3976.50.
Potentially higher interest rates became the focal point in interest rate futures as Tuesday’s
economic data showed a seven-year high in monthly new home sales and a
near-record high in consumer confidence. September T-bonds
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USU0 |
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PowerRating) closed
down 10/32 at 99 17/32.
Deteriorating crop conditions and poor weather forecast for the days ahead led to the second gap-up opening and a rally in soybeans. November soybeans
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PowerRating)
closed 15 higher at 495 1/4 and soybean meal from the Momentum-5
List ended 4.8 higher at 166.1.
Weakening fundamentals and a weaker cash market continued to hit the leading
contract on the
Implosion-5 List,
feeder cattle. October live cattle
(
LCV0 |
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PowerRating) and feeder cattle
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FCV0 |
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PowerRating)
both traded down to multi-month lows, finishing down .400 and .225, respectively.
Orange juice, another Implosion-5
component, remained near its low setup Monday. This formation is often the harbinger of a bigger continuation
move (down).
Nearly two months with no rain and weeks of temperatures
exceeding 100 degrees continues to create a bullish scenario for cotton. The
Dec. contract had hit a new contract high Monday and the futures continues to
follow through on a 1-2-3-4 pullback from highs setup.
