Why The Underlying Tone Is Still Bullish
The Dec. S&P 500 futures closed at 891.50, down
7.09. The action today suggests that the underlying tone is still slightly
bullish and that individual stocks could still benefit simply by reporting
as-expected earnings. The profit-taking today isn’t unexpected given the run the
past few days.
In the energies, crude oil fell to a seven-week
low after the US signaled it may be willing to compromise on Iraq, easing
concern that exports from the region might be disrupted by military conflict.Â
Crude oil for November delivery
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closing price since Sept. 3. The November contract expired today. The more
active December contract
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$28.07 a barrel. Nov. heating oil
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a gallon. Nov. unleaded gasoline
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to 79.59 a gallon. Nov. natural gas
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In the Dec. S&P 500 futures
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and Dec. Nasdaq 100
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futures pointed to a lower open, and that they did. Profit-takers stepped in
after Texas Instruments
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Dec. Nasdaq 100 futures did not close above its opening levels, but put in a
rally in the last half hour of trade. NDZ2 closed at 973 down 6.00.
At the Chicago Board of Trade (CBOT) some of the
grains and beans declined from their recent gains. Dec. wheat
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dropped 4.25 cents or 1.04% to $4.04 a bushel. Dec. corn
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.75 of a cent to end at $2.51 1/2 a bushel. Nov. soybeans
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2 1/2 cents to end at $5.46 1/2 a bushel.
In the precious metals,
both silver and gold rallied up higher today. Dec. gold
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to end at $313.60 a troy ounce. Dec. silver
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1.45% to $4.412 an ounce. As of the high Monday, copper was effectively 500
points off the October low which leaves the market overbought. However, as long
as the stock market provides surprisingly positive action copper will be
supported. Reports of Chinese selling overnight show signs that the near-term
rally might have run its course and that the Chinese are unwilling to pay higher prices at this stage in the global recovery.
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