Look What Got Reenergized
Stocks fell Monday as grim earnings news in
the telecommunications sector intensified concerns that the long-awaited
recovery in corporate profits could be disappointingly weak.
The June Nasdaq 100
(
NDM2 |
Quote |
Chart |
News |
PowerRating) controlled by large technology stocks, sank
35.50, or 2.56%, to close at 1353.500. The Nasdaq 100 future contract put in an
intraday low at 1340. It then tried to rally from that point, but to no avail.
Take a look at
Dave Landry’s Futures Trading Outlook. Dave talks about the Nasdaq 100
retesting its lows.
The June Dow Jones Industrial Average
(
DJM2 |
Quote |
Chart |
News |
PowerRating) lost 117 points, or
1.14%, to 10135, finishing modestly above its low for the day. The Dow is very
close to re-testing its 10,000 levels.
The June Standard & Poor’s 500
(
SPM2 |
Quote |
Chart |
News |
PowerRating) lost 18.40 or 1.63% to end at
1108.300. There was nothing positive for the S&Ps today. It was a downtrend all
the way!
Bond prices eked out small gains. In the currency markets, the dollar
strengthened against the euro but was lower against the yen.
The economic and political crisis in Argentina sent corn and soybean futures
higher this morning on the Chicago Board of Trade. Wheat was trading lower.
Argentina closed its banks and foreign-exchange
markets indefinitely Monday as the government prepared to take politically
treacherous measures to rescue the banking system by a further influence on
Argentines’ savings.
Also underpinning the modest gains was a weather outlook calling for drier
conditions in the Midwest. A switch to dry weather could lessen the likelihood
of delays in planting and field work.
The volatile situation prompted buying in both
corn and soybeans as Argentina is an export competitor to the U.S. July corn
(
CN2 |
Quote |
Chart |
News |
PowerRating) rose 1.50 cents to $2.04 a bushel; July soybeans
(
SN2 |
Quote |
Chart |
News |
PowerRating)
were higher then reversed and ended negative at $4.72 1/2 down 1.75 cent. Wheat
prices slipped after needed rains fell over the weekend in the winter
wheat-growing region. Wheat for July delivery
(
WN2 |
Quote |
Chart |
News |
PowerRating) fell to $2.72 1/2
a bushel.
Crude-oil futures fell on the New York Mercantile Exchange. The June contract
(
CLM2 |
Quote |
Chart |
News |
PowerRating) was down .04 cents to $26.40 a barrel by the end of trading.
June unleaded gasoline
(
HUM2 |
Quote |
Chart |
News |
PowerRating) shed .01 cent to 79.45 cents a gallon.
June heating oil
(
HOM2 |
Quote |
Chart |
News |
PowerRating) inched down 0.11 cents to 66.27 cents a
gallon and June natural gas
(
NGM2 |
Quote |
Chart |
News |
PowerRating) was 0.5 cents lower to $3.616 per
million British Thermal Units.
Comex May silver futures [SIK2|SIK2]scaled five-day highs of
$4.543 up 4.00 an ounce amid thin conditions at midmorning Monday on light fund
buying. June gold
(
GCM2 |
Quote |
Chart |
News |
PowerRating) also traded higher at $303.60 up .60,
May copper
(
NGK2 |
Quote |
Chart |
News |
PowerRating) rallied .07 to 3.596 a pound.
The
June Commodity Research Bureau Index
(
CRM2 |
Quote |
Chart |
News |
PowerRating) is a composite index of 17
major raw commodities prices. The index includes the price of grains,
energies, livestock and other commodities that have futures markets. Traders
closely monitor the CRB Index for clues on the overall performance of
commodities prices, and to gauge inflation. The recent strong upside move in the
CRB Index has re-energized struggling commodities.Â
The most recent
downtrend line on the monthly CRB Index chart, was also part of a big V-Top
reversal that played out over the past couple years. Before that, there was a
big V-Bottom reversal that played out.
Indeed, the CRB Index has liked to trend
strongly the past few years. Furthermore, there is the potential for a big
double-bottom reversal pattern to develop on the monthly CRB chart.
The fact
that prices have rebounded sharply off of strong support just above the 180
level in the CRB Index does give the bulls solid encouragement that a bullish
double bottom reversal pattern is forming, and that another V-bottom reversal is
also developing on the longer-term monthly chart. What does all this mean for
traders? It means that there is a possibility that bottoms could be close at
hand, or in place, for markets like the grains, energies, and international
foods markets to begin a potential rally.
Â