What’s Behind This Boost
After pulling back yesterday, soybeans and
grains received a boost from three separate news stories. The first was the U.S. Government announcement that it would increase farm
subsidies. The second batch of news was reported in relation to the winter-wheat
crop. The government’s report show that the crop’s condition has not improved,
which would point to a less-than-expected crop to be harvested. Wheat has been
dropping like a falling knife of late and put in a 20-day low yesterday. This
set up a
Possible Turtle Soup Plus One Buy Setup. Today July wheat
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rallied up 3.75 cents or 1.42% to end at $2.68 3/4 a bushel. The third news
item impacted July corn
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$2.00 1/2 a bushel. The move came on the heels from South Korea’s large corn
purchase. July soybeans rallied up 1.25 cent to $4.66 3/4 to end positive.
The June Dow Jones Industrial Average
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moved cautiously at the beginning of today’s session. The Dow 30 opened
right around yesterday’s close of 9819. It then channeled sideway’s until about
10:00 AM EST when some economic reports were released. The Consumer Confidence
index slipped to 108.8 in April from 110.2 in March; this was actually a bit
better than the 107.5 consensus and consistent with the slight drop in the
Michigan consumer index. The Chicago PMI fell to 54.7% in April, just a bit
below the 55.0% consensus. This did not detour traders, because the news was not
that of an upset. If anything it was good. The market took off and didn’t look
back by 1:00PM EST the Dow was up over 170.00 points trading around 9992.82. The
market internals were positive. The June Dow futures rose 114.00 or 1.16%
The June Nasdaq 100 rose 29.00 or 2.32%. Helping the Nasdaq move higher today
is the AMEX Biotech Index
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Care Index
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The June S&Ps
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positive. The S&Ps rallied 11.09 or 1.04% to close at 1076.00. To get Lewis
Borsellino’s take on the S&P’s
click here
In the energies, crude oil for June
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demand for crude. June crude lost .28 or 1.02% to end the session at $27.28 a
barrel. June heating oil
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down .20. June unleaded gasoline
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81.32 and the only winner was June natural gas
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or 6.45% to close at 3.79.
In precious metals, the strong trending gold,
gave up some of its gains today due to a slight rebound in the dollar, a rising
equity market and good old fashioned profit taking. June gold closed lower
by $2.29 to $309.20 an ounce. May silver suffered a 10.40 or 2.24% loss to close
at 4.532 and May copper fell .15 to 73.25 a pound.