Crude Cascades
Reeling in its biggest one-day loss in 10 years, crude oil is down
sharply on the expectation that a recession will dry up demand for crude oil
and products.Â
November crude oil
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and
heating oil
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New 10-Day Low List, making them eligible for an
Off The Blocks
short entry. After gapping down $2 a barrel, crude fell nearly another 2.00
and is trading at a one-year low.Â
Following the worst weekly point-loss ever in the Dow and one of its
worst percentage losses, stock index futures started this week way over
sold. Six up arrows from the Market
Bias Indicators Page demonstrated the deeply oversold situation. There was a
small pullback after the gap higher, in all three stock index futures,
providing long entry. Both Dow and S&P futures are setting up in Slim
Jim formations. However, look to play them either way as the push higher has
already been large and we remain in a bear market.Â
In the currencies,
Swiss francs
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The two contracts normally move in near-lockstep but in a flight to safety
— out of both US and European assets into the neutral banker’s
monetary unit — Swiss francs saw a radical de-coupling Friday. The move
down in francs, -.0081, is larger relative to the euro FX, demonstrating the
re-alignment.Â
Japanese yen
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in currency markets for a fourth time in one week in an effort to weaken the
yen. Japan will have a more difficult time exporting its way out of a
10-year economic doldrums if the yen is expensive relative to its biggest
purchaser of goods, the United States.