The Big “E”
A report showing that manufacturing cooled to its slowest
pace in nearly 10 years is confirming to traders that the economy
continues to downshift. Spooked holders of stocks are dumping tech in droves,
sending the Nasdaq 100 futures through two limit-down moves.
Confirming this view is The Wall Street Journal’s
semiannual poll calling for the economy to slow to 2% during the next six months.
Nasdaq 100 futures
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PowerRating) are following up Friday’s big down day and
triggering of a Pullback From Lows
setup with losses to a new contract low of 2185.Â
Starting off the new year on a down note, the Nasdaq 100
futures have traded through a second limit down move of the session. The limit
moves are recalibrated quarterly and based on moves of 2.5%, 5% and 10%. The
point values for this quarter will be 65.00, 130.00 and 260.00, respectively.
The lowered limit-move point values will mean there will likely be more limit
down trading curbs imposed.Â
After accelerating to contract highs at the time
coinciding with the first limit-down move in Nasdaq 100 futures (around 10 AM
ET), March 10-year Treasury note futures
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new highs out of an intraday pullback-from-highs setup. (The 10-years also
lapped out of a daily
Pullback From Highs
setup). The 10-years and Nasdaq 100 futures
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PowerRating) are trading in reverse
lockstep: the bonds have led moves slightly lower in NDH, as traders buy into
bonds in a flight to safety. Bonds are up more than a point in a big expansion
bar and Naz futures have plunged through two limit moves.
T-bonds
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PowerRating), also a Pullback-From-Highs List setup, are also up more
than 1 point.Â
Natural gas futures are plunging out of their Turtle Soup Plus One
Sell setup despite the press suggesting that national inventories of the heating
fuel might be insufficient to meet demand this winter. The February futures
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PowerRating) are down 11%
Also on the downside,
March cotton
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juice
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coffee
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PowerRating) are sinking and making good on their Implosion-5
or Pullback From Lows setups.