The World Wags The Dow

  • March 14, 2001
  • Marc Dupee

Warnings from Japanese government officials that their
economy will deflate and worries that the US economic slowdown will ripple
throughout the world sent Japanese stocks to new 16-year lows and European stock
averages down 3.5% overnight. The negative overseas stock market performances
sent S&P and Dow futures down sharply on the opening.  

Both the
S&P futures
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Dow futures
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but have traced intraday head-and-shoulder tops that suggest probes to new lows.

Nasdaq 100 futures
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at limit-down levels. 

Interest rate futures gapped up as traders bolted to the
perceived safety of bonds.

T-bonds
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15/16 and then sold off from the double-top formation. As Dow and S&P
futures deteriorate, bonds are coming off lows and remain up 20/32 at 105 31/32.


10-year notes
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off the March 1 high. 

June dollar index futures
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and the
New 10-Day Highs lists are being bought as the buck is seen as the best of
undesirable investment alternatives. 

The Japanese yen
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then cascaded, but may be finding an intraday low after testing the low of the
initial waterfall in an intraday reversal setup. 

Front page lead stories showing burning carcasses in
both the LA and NY Times are working to heighten the public’s awareness about
the foot-and-mouth disease in Europe. The US banned all animal imports from
Europe. May pork bellies
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List, gapped to new highs, sold off but are recovering losses during the
session and are up 2.750 at 85.275.
April lean hogs
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pattern that has recently characterized trading in this contract as traders get
long at lower levels.