The Pattern To Watch For Surprise Rallies
Index futures sold off on the open but mounted a rally out of a 10 AM EDT
Trap Door, closing near the session highs.
Dow Futures
(
DJZ2 |
Quote |
Chart |
News |
PowerRating) rallied to the tune of a 200+ point day when it was
all said and done, and the tech leadership in the stock market buoyed the Nasdaq 100
Futures
(
NDZ2 |
Quote |
Chart |
News |
PowerRating) which had shown the best relative strength of the three
major indices over the past few days. The S&Ps
(
SPZ2 |
Quote |
Chart |
News |
PowerRating) gained
over 20 points heading into the Globex overnight trading.
The stronger index futures pulled the plug on the bond market, as 10-year Notes
(
TYZ2 |
Quote |
Chart |
News |
PowerRating)
and U.S. Treasury Bond
(
USZ2 |
Quote |
Chart |
News |
PowerRating)
were sold off as traders jumped on the momentum train.
Gold
(
GCZ2 |
Quote |
Chart |
News |
PowerRating) and Silver
(
SIZ2 |
Quote |
Chart |
News |
PowerRating)
suffered as well, with the December gold contract falling 3.30 in Thursday’s
trading, while SIZ2 lost 0.05 to fall to 4.30.
The U.S. dollar
(
DXZ2 |
Quote |
Chart |
News |
PowerRating) was also aided by the strength in the
U.S. equity markets, as it tacked on a gain of more than 30 cents against its
foreign counter parts. The Canadian dollar
(
CDZ2 |
Quote |
Chart |
News |
PowerRating) was the only other
major currency to close positive, as it took a breather after several down days. Euro
(
ECZ2 |
Quote |
Chart |
News |
PowerRating), Swiss
franc
(
SFZ2 |
Quote |
Chart |
News |
PowerRating), Japanese yen
(
JYZ2 |
Quote |
Chart |
News |
PowerRating)
all closed in the negative, while the British pound [BPZ2|BPZ2 finished
the day unchanged.
Cocoa
(
CCZ2 |
Quote |
Chart |
News |
PowerRating) continues to be strongly in the grip of the bulls
as a lack of technical weakness and political instability along the Ivory Coast
continue to push the contract to new highs again on Thursday. The contract
has been climbing up a trendline since the beginning of August. In other softs, Cotton
(
CTZ |
Quote |
Chart |
News |
PowerRating)
is moving in a counter trend rally up to the 20-day moving average, while Orange Juice
(
JOX2 |
Quote |
Chart |
News |
PowerRating)
is tracing out similar action after a waterfall move lower. Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating)
has started to pull back from its high of two days ago, and Coffee
(
KCZ2 |
Quote |
Chart |
News |
PowerRating)
appeared to break down, dropping 1.40.
In the meat complex, both Pork Bellies
(
PBG3 |
Quote |
Chart |
News |
PowerRating) and Lean Hogs
(
LHZ2 |
Quote |
Chart |
News |
PowerRating)
continue to rebound out of pullbacks to the 20-day moving average, but the
bellies slipped a little into the close and ended the day weakly. Live
Cattle
(
LCZ2 |
Quote |
Chart |
News |
PowerRating) and Feeder Cattle
(
FCV2 |
Quote |
Chart |
News |
PowerRating) both ended the
session higher and appear to be regaining some upward momentum following a tough
four week period which saw falling contract prices.
Crude Oil
(
CLX2 |
Quote |
Chart |
News |
PowerRating) pulled back to the 50-day moving average, while
the rest of the complex dropped in Thursday trading as well. Gasoline
(
HUX2 |
Quote |
Chart |
News |
PowerRating), Heating Oil
(
HOX2 |
Quote |
Chart |
News |
PowerRating) and Natural Gas
(
NGX2 |
Quote |
Chart |
News |
PowerRating) all
finished to the downside for the second straight day.
Finally, in grains, Wheat
(
WZ2 |
Quote |
Chart |
News |
PowerRating)
continues to implode out of a counter trend rally, while Corn
(
CZ2 |
Quote |
Chart |
News |
PowerRating)
is tracing out similar action on its chart. Soybeans
(
SX2 |
Quote |
Chart |
News |
PowerRating) took a breather after yesterday’s spike downward, and
Bean Oil
(
BOZ2 |
Quote |
Chart |
News |
PowerRating) finished in the red, with Soy Meal
(
SMZ2 |
Quote |
Chart |
News |
PowerRating)
posting a gain of 0.90 on the day.