Bullish Market Bias Precede Rally
Stock index futures followed through on yesterday’s late turnaround to end positive on the day. Five HREF=”https://tradingmarkets.com.site/eminis/indicators/actionsigs/mbias.cfm”>Market Bias Indicators were bullish, a rare occurrence noted by Dave Landry in last night’s HREF=”/query/indicators/commentary/dlfutoutlook.cfm?link=dlfutoutlook”>Futures Trading Outlook. Turtle Soup Plus One buy setups in December Dow futures [DJZ9>DJZ9] and the S&Ps [SPZ9>SPZ9] also suggested an up day. Dow futures rose 70 to 10,931.0, the NASDAQ 100 futures [NDZ9>NDZ9] surged 84.50 to 2573.00 and the S&Ps gained 17.90 to 1351.50.
December T-bonds [USZ9>USZ9] rose 17/32 to 114 02/32 despite a stronger-than-expected report on housing starts (building permits actually dropped, however). Traders focused on a stronger dollar/yen and the view “du jour†that the Fed will not raise interest rates again this year due to Y2K concerns.
December dollar index futures [DXZ9>DXZ9] moved up .26 to 99.97, responding positively to speculation that the US and Europe will cooperate with Japan to weaken the yen and promote a Japanese economic recovery. The yen [JYZ9>JYZ9] fell .0158 to .9472.
From the Momentum-5 List, October crude [CLV9>CLV9] closed at a new high, up .21 to 24.72. Natural gas [NGV9>NGV9] also rallied .062 to 2.608.
Copper [HGZ9>HGZ9], from the Pullback From Highs List, shot up 2.05 to a new contract high of 84.35. Gold [GCZ9>GCZ9] and silver [SIZ9>SIZ9] ended lower.
The grains fell today. December corn [CZ9>CZ9], from the Implosion-5 List hit a 20-day low, closing down 2 1/2 at 210 1/4. November soybeans [SX9>SX9] fell 5 1/2 to 487 1/2 and soymeal [SMZ9>SMZ9] closed 1.5 lower at 148.4.
In the meats, October feeder cattle [FCV9>FCV9] gained .600 to 79.775 and October lean hogs [LHV9>LHV9] regained recent losses, moving 1.150 higher to 43.675.
October sugar [SBV9>SBV9] rose .14 to 6.91, setting up to retest highs after a pullback. On the flip side, cocoa [CCZ9>CCZ9] fell 21 to 921 and coffee [KCZ9>KCZ9] slipped another .25 to 84.05.
Finally, November orange juice [OJX9>OJX9] made good on its Turtle Soup Plus One Buy Trigger, rising as high as 93.40 before closing up .65 at 91.35.