Brits Feel The Heat
The British pound
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PowerRating) is taking a hit,
falling off multi-month highs after reporting weakness in key economic sectors.
Similar to the US, Britain’s manufacturing sector has been suffering, but
construction and services have been picking up the slack. Reports today indicate
both construction and services weakened last month, pulling out two of the
few remaining bright spots in the economy.
Technically, the contract setup in a
Turtle Soup Plus One
Sell
pattern and is making good on the setup.Â
T-bonds
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PowerRating)Â are rallying to new contract highs after
President Bush said that any economic stimulus package from his
administration would be designed to not raise long-term interest rates. The
market is viewing this message bullishly, especially the long end with the
basis Dec. T-bonds up 17/32 at 106 18/32. 10-year notes
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PowerRating),
from the Momentum-5
List, are also tentatively higher and have made good on a Off The Blocks
long entry, a setup appropriate to momentum contracts.Â
Going the other way, October sugar
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PowerRating) is also making
good on its downside momentum indication (the
Implosion-5 List) and making good on a Off The Blocks
short entry as the issue approaches a contract low.