Buck’s Bullish Bias Shifts
The National Association of Purchasing Managers (NAPM)
report released Wednesday morning provided further evidence that the economy is
slowing. A recent string of reports–GDP, consumer confidence, the NAPM-Chicago–as
well as sales slowdown warnings and a sub-par corporate earnings season have
worked to solidify the view that the US economy is slowing.
The value of the dollar is sensitive to changes in
perceptions of relative economic performances. Euro FX futures
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PowerRating) surged on Wednesday’s NAPM news and are continuing higher, up .00910
to .85990, or 1%. Correlated Swiss franc futures
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PowerRating) are also up
1% and trading on their highs of the session, while dollar index futures
are down .88 to 115.74.
Dollars did not rally in confirmation of Tuesday’s rally
in tech and blue chip stocks (a factor pointed out in yesterday’s Futures
Market Recap). These developments point to a big shift in sentiment about
the dollar and perceptions of the state of the US economy, and suggests tepid
stock market progress.
Japanese yen
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PowerRating) gapped higher but retraced
to their lowest level of the session, providing an opportunity to make good on a
Turtle Soup Plus One Buy
entry. The yen is currently back at lows again, perhaps providing a second
entry opportunity.
Also making good on Turtle Soup Plus One Buy
setups, corn and wheat are rallying. Corn moved higher in its biggest
up-move in months Tuesday, with huge buying after no sellers were found below $2
a bushel. The move pushed corn onto the Momentum-5
List. More than 10,000 bushels were said to be purchased by commodity funds
at the $2 level.
Three down signals from the
Market
Bias Indicators Page gave a strong hint that stock index futures could trade
lower. An additional hint about the potential down move in index futures came
from
Dow futures
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PowerRating), which registered on Turtle Soup Plus One
Sell list.
