The Zone That Made The Difference
Today was a reversal of fortune for traders in
the Futures, as the September S&P 500 e-minis
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off in a big way at the beginning of the session. A couple 1,2,3 lower bottoms
had formed, showing signs of a possible reversal, but to no avail. At one point a
rumor was making its way around that the Fed may cut rates by 1/4 point
tomorrow, but there was not enough proof behind the story and it was mostly discounted. Finally, as the S&P e-minis hit around the -3.0
Volatility Band zone, at 875.70,
a rally was sparked and by the time the 895.00 level was broken, a rally was on
the way. And the futures closed positive.
The Nasdaq 100 e-mini for September
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faded. Then at the end, the Semis were instrumental in helping bring the Nasdaq
100 futures back to positive territory.
Traders will be listening to the Federal Reserve
tomorrow in anticipation of any Fed intervention. Between rumors of interest
rate cuts or more corporate book keeping scandals, we will have to sit tight.
For tomorrow’s CVR signals
click here.
There are concerns
about a return to extreme heat in the Midwest. This news sent grain and soybean
futures rocketing higher Monday on the Chicago Board of Trade (CBOT).
Market-watchers said hotter and drier conditions than expected over the weekend
plus fresh forecasts calling for more such weather this week would damage
the growing process. September soybean prices
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higher, rising about 2 1/2% to 18-month-highs they closed up 11 3/4 to $5.33 1/4
a bushel.
Corn jumped higher for similar reasons, particularly with the crop heading into
the critical pollination phase. Wheat was supported by hot weather in spring
wheat-growing areas. December corn
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a bushel. And wheat for September
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3/4 a bushel.
The energy markets started out strong, then fell down giving back some of the
gains from last Friday. Crude for August delivery
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cents or to $27.07 or a barrel on the New York Mercantile Exchange.
August heating oil
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and August gasoline
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August gold futures rallied to nine-day highs of $319.90 per ounce up
4.00 or 1.27%. This was on on the back of increased buying sparked by the drop
in the Sept U.S. dollar
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move and hit 27-day highs of $5.155 by mid- morning, then settled at $5.118 and
ounce up 5.29 . September copper
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pound.