Bonds Blow Up

T-bonds fell sharply as a batch of corporate debt hit the market. Tony
Crescenzi
pointed out on TradersWire BondWire that Sears will be offering
10-year notes which would yield two percentage points more than
government 10-years. The 10-year notes
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gapped below their
session lows out of a descending triangle to close down 16/32 at 105 0/32.

Also note that T-bonds
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plunged after
failing to follow through on yesterday’s close, three ticks above a key cluster
identified by Carolyn Boroden in Wednesday’s Futures
Perspectiv
es. Entry was provided on a pullback from intraday low when the
contract filled the morning gap down. 


Nasdaq 100 futures

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nudged a 20-day high yesterday, setting up a Turtle Soup Plus One
Sell
signal. After the Microsoft euphoria, traders took heed that Sun Micro
had an earnings slowdown after it matched earnings, working to drag down the Naz.
A critical mass of four
Market
Bias Indicators
pointing down (two from yesterday) also suggested that we
could get a reversal here.  

The situation in California is starting to ripple through
the national energy market. Reports out today that the state could experience a
gasoline shortage emerged because natural gas and electricity used to fuel pumps
to move unleaded are halted due to the crises/rolling blackout situation. Unleaded gasoline
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closed up .0232 at .8812 and

natural gas

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rallied .323 to 7.459.