Blue Chip Bull
Stock index futures finished higher across the board,
breaking out of an intraday consolidation range and extending convincingly out of a three-month range after traders returned from lunch.
Although the semis and oil services were the best performing sectors fueling the
blue chip rally, financials continue to underpin the Dow. JP Morgan was the
biggest gainer, up 4 1/16 and Citigroup moved higher out of a pullback.
Dow futures
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PowerRating), from the Momentum-5
List, hit a three-and-one-half month high, and like other index
futures contracts, closed just off their highs of the session. September S&P futures
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kissed 1500 before closing at 1498.10, a gain of 19.60.
NASDAQ 100 futures
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A note of caution. Monday’s rally came on one of the
lightest volumes of the year and coincided with the lowest reading on the VIX
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seven months. The VIX is a volatility indicator for the S&P 100, a
contrarian indicator whose low reading suggests excess complacency. Some traders use an absolute VIX in the 20s as an indicator. The VIX hit a low of 20.17 and closed at 20.35.
A tropical storm (Beryl) that is expected to intensify to
hurricane force failed to inspire buying of
natural gas
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PowerRating) futures. Forecasts for mild temperatures across the
Northeast are also reducing cooling demand (of nat gas) and providing the opportunity for
supplies to build before the primary-use, heating season during the winter. The August 9 spike-top and retreat, as well as plateau
around 4.450, are signposts of strong resistance building and of a possible topping
pattern. Nat gas closed down .157 at 4.318.
Energy contracts from the Momentum-5
List are continuing higher despite factors suggesting prices could drop.
Crude and heating oil rallied for a fourth consecutive day closing at contract
records and keyed off the stockpiles situation which are resting at 24-year
lows. September crude oil
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PowerRating) gained .92 to 31.94,
heating oil
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PowerRating) moved .0152 higher to .8734 and
unleaded gasoline
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PowerRating) gained .0083 to .9202.
A tropical storm that is expected to intensify to
hurricane force failed to inspire buying of
natural gas
(
NGU0 |
Quote |
Chart |
News |
PowerRating) futures. Forecasts for mild temperatures across the
Northeast are also reducing cooling demand and providing the opportunity
for supplies to build before the primary-use, heating season during the winter. The August 9 spike top and retreat and plateau
around 4.450 are signposts of strong resistance building and possible topping
pattern. Nat gas iclosed down .157 at 4.318.
Dollar index futures,
another contract from the Momentum-5
List, started on a positive note but couldn’t hold on, falling .05 to
111.01.
Coffee futures continue to get dunked to new contract
lows, following through on their breakout from a witch’s hat pattern and narrow
range consolidation to new lows and finished down 1.85 at 78.80.