Why The Market Was Able To Rally
A turnaround rally with a positive twist had
the S&P 500 futures ending in the green. After two negative economic reports
this morning, the S&Ps dropped off and traded in a fairly tight range in
negative territory. But like yesterday when the markets shook off the negative
Consumer Confidence number, today’s S&P futures also shook off the bad news and
closed up. The Sept S&P 500 shot up the last hour of trade to end at 911.50 up
3.50.
The Sept Nasdaq 100 futures
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fare as well. On the intraday chart NDU2 formed a 1,2,3 lower bottom and did
attempt to rally back to close in the positive zone. But time ran out and the
Nasdaq 100 futures ended losing 20 or 2.03% to 964.50.
The weatherman rules the grain and bean markets
these days. Today’s markets were propelled by the outlook for extended dry,
burning hot weather in the Midwest.
November soybeans
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weather forecasts showed extreme heat in the soybean belt for the next 10 days.
Soybeans have now risen up over 7% since this past Tuesday and are now $5.36 a
bushel. November soybeans rose 18 cents or 3.47%l.
In the corn belt, weather conditions will not be as bad in the coming days. Some
of the crop has already been damaged by heat. Another heat wave would
increase more losses to the crop causing prices to rise. Today December corn
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Wheat prices rose, thanks to the positive rallies in soybeans and corn. Sept.
wheat
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cents to $3.34 a bushel.
In the energy market, September crude oil
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or 1.50% cents to $26.94 a barrel; August unleaded gasoline
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slid 1.12 cents or 1.40% to 78.79 cents a gallon, August heating oil
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On the Comex Divison of the New York Mercantile Exchange, December gold
futures
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then fell down to close at $305.30 an ounce down .70. With the equity markets
beginning to perk up as well as the dollar
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waiting to see if this rally is for real or if it is setting up for another
fall.
September silver
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$4.625-$4.665 range. Silver closed at $4.605 down 5.29 cents or 1.14%.
September copper
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pound.