Monday’s Great Opportunity On The Downside
At the beginning of trade,
the S&P
500 futures futures on the Globex pointed to a positive open. The Dec. S&P
500 futures
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then pulled back. Another rally to the upside had traders covering their
shorts. After a little chop, a head-and-shoulders pattern formed with a
neckline at 897. The break below 897 was a great opportunity for shorts to make
some money on the downside. The SPZ2 ended at 891.79 down 6.20.
Dec. Nasdaq 100
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US Treasuries rose,
sending the two-year note yield to a two-week low, on speculation the Federal
Reserve will lower interest rates as soon as next week to bolster the economy.
The FOMC meeting is next Tuesday. The Dec. 10-year note
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climbed .23 to 113.37 and the Dec. 30 year bond
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unchanged at 109.00.
In the energies,
crude oil rose as President
Bush resumed calls for a UN resolution that would threaten Iraq with military
action if
unobstructed weapons inspections are not allowed. Crude oil for December delivery
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Mercantile Exchange. Oil has climbed 38% this year, partly on concern an
attack on Iraq would disrupt supply.
Dec.
heating oil
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gallon. Nov. unleaded gasoline
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gallon and Nov. natural gas
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NGZ2 is beginning to rally from a pullback from the high.
At the Chicago Board of Trade (CBOT) some of the
grains and beans declined from their recent gains with soybeans being the
biggest loser on the day. Nov. soybeans
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to end at $5.46 a bushel. This is just above the 20-day moving average of 5.42.
Dec wheat
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corn
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In the precious metals,
both silver and gold rallied higher today. Dec. gold
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above above the 315 resistance level to close at $315.69 a troy ounce, an
increase of 1.80. Dec. silver
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The 4.41 level is now its support.
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actually trading above the .72 level today, but it pulled back and closed lower
at 71.34 a pound, down .10.