Bonds Rally For The Newly Unemployed
T-bonds
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just above their four-month low in a signal that the brutal selling that has
taken the June contract down 7 full points in one month may (temporarily)
abate. T-bonds’ 1-point rally this morning is an engulfing (outside day) at
low, a technical pattern indicative of a rebound. Traders are responding to the
biggest gain in workers filing for unemployment benefits in five years. The
perception here is that although there have been recent signs of economic
recovery, a growing number of unemployed workers will keep economic activity
slow and keep the Fed on the offensive in cutting interest rates to stimulate
growth.Â
June crude oil
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is playing catch up with the recent leader in the energies — unleaded gasoline
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— rallying after last night’s APIs showed supplies of crude fell half a
percent, their first drop in seven weeks. Part of the reason for the drawdown
in supplies was due to higher demand by refiners who were cracking crude into
gas and distillates at their fastest pace in seven months. Unleaded also gapped
higher, but is currently in a Doji formation (a candlestick, cross-like bar
where the open and last price are the same, indicating a change), leaving more
technical evidence of a top in this contract.Â
A combination of
multiple positive signals is leading to gains in stock index futures.
Nasdaq 100 futures
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S&P futures
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are on the Momentum-5
or Pullback From High
list. Also, a positive Connors VIX Reversal I and TRIN reading from the
Market
Bias Indicators Page point to higher ground in equity futures.Â
May pork bellies
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their near-limit-down move yesterday in the wake of Japan’s partial lifting of
its ban on European meat. Bellies are trading just above the trigger of their Turtle Soup Plus One Buy
signal and on their session highs.Â
It’s a clean sweep on the Momentum-5
list this morning. July sugar
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Canadian dollar
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