Bush 34% Solution Bucks Bonds
T-bonds
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10-year notes
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Pullback From Highs
setups, bolstered by the positive impact a Bush presidency is likely to have on
the economy and by extension, the bond market. Bush has proposed cutting taxes
from the current top tax rate of 39% to 33%. The view is that lower taxes will
spur economic growth which will keep tax dollars rolling into government
coffers. Higher tax receipts will allow the budget surplus to continue growing
and permit the government to continue paying down debt.
Stock index futures are mixed with the S&P
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and Nasdaq 100
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Dow futures
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into stocks and three negative signals from the
Market
Bias Indicators Page are weighing on declining index futures. Going the
other way, Dow futures have been rallying as defensive stocks move up
after scoring on the
New 10-Day Highs List.Â
From the Pullback From Lows List,
the Japanese yen
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survey on business confidence sank. The survey signals that the Japanese economy
will likely weaken in coming quarters.Â
March sugar
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right shoulder of a head-and-shoulders pattern. The futures is down .24 to 9.41,
or 2.49%, making a move more consistent with its recent average daily trading
range as volatility reverts to its norm. A larger-than-normal move was indicated
by sugar’s 6/100 Low Volatility
and 10/100 Low Volatility readings.Â
As mentioned in recent futures articles, cocoa
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signaled a Turtle Soup Plus One Buy
and is trading slightly higher, up 4 at 720.