Does Five Up Days Mean The Bulls Are Back?
The futures gapped up the major indices today.
This helped stocks rise for the fifth day in six as International Business
Machines
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Technologies
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higher-than-forecast profits. Almost two-thirds of the companies in the
Standard & Poor’s 500 Index that have published quarterly results have exceeded
estimates.
The S&P 500 futures for Dec.
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rose up 17.19 or 1.99% to 879.50 above its 50-day moving average and the 50%
retracement level drawn from the Aug high to the recent lows this month. The
Dec. Nasdaq 100
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at 960.00 but ended closing at 946 up 26.50 or 2.88%.
The Treasuries continued to break down from their
recent highs. The Dec. 10-year note
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moving average to close down 180 to 112 180. The Dec. 30 year bond
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In yesterday’s trade, the December dollar
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was a down trading day in the equities. Looking to the future, the dollar
probably won’t slide if the US stock market softens. However, because there is
no indication on the direction of economies outside the US, the sideways
currency action looks to continue. In today’s trade, the dollar rose .74 tp
108.71.
In the energy market, Venezuela, OPEC’s
third-largest oil producer, said world oil prices are inflated by concern of a
looming attack on Iraq and that supplies are sufficient on the world market.
Oil prices this year have surged 39% in London to $27.70 a barrel as OPEC
restrained output and concern grew that Iraq would be attacked. The Venezuelan
minister said about $4 of the current price is because of Iraq.
The Organization of Petroleum Exporting Countries, which pumps a third of the
world’s oil, kept output quotas at an 11-year low last month to keep prices
between $22 and $28 a barrel. OPEC’s oil price has risen 49 percent this year to
$28.01.This according to Bloomberg.com. Nov. crude oil
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rallied higher to $29.62 a barrel up .15. Nov. unleaded gasoline
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added .07 to 4.30.
In the grains, Dec. wheat
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a bushel. Nov. soybeans
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a bushel and Dec. corn
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session at $2.55 1/2.
In the metals Dec. gold
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dropped below its support level at 312. It did manage to come back and close at
$312.19 just above support loss of 2.39. Dec silver
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cents to end at $4.34 1/2 an ounce. Dec. copper
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above the .68 resistance level to close at 69.70 a pound a gain of 2.10 cents or
3.11% increase.