Cold Reception
Traders punished coffee, dumping contracts after forecasts for freezing
temperatures in Brazil, the world’s largest grower, missed the primary growing
regions. Technically, coffee rallied from opening levels
Friday providing entry on a Turtle Soup Plus One
Sell signal after failing to move into the gap area above the previous two
day’s highs (94.70). The September contract
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PowerRating) erased all of the gains from the
previous three days and ended 10.85 lower at 91.35.
The Producer Price Index (PPI) gave a mixed reading with the report posting a
slightly higher-than-expected gain of 0.6%. Traders were impressed by an
unexpected decline in the core PPI, the portion of the report that excludes the
more volatile food and energy components. The decline in the core rate, coupled
with the smallest increase in industrial production in nine months, demonstrate
that the Fed’s year-long campaign of interest rate hikes is slowing the economy.
The reports were negatives for bonds and blue chips.
Among Nasdaq 100 stocks Amazon
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percentage basis, up 20%. Siebel
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point-gains. Rallies in these stocks and semiconductors boosted tech and
helped send NASDAQ 100 futures
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PowerRating),
from the New 10-Day Highs List,
up 67.50 to 4076.00.
Declines in Johnson & Johnson
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to a gain of 8.0 to close at 10,895.0. September S&P futures
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rallied steadily after testing Thursday’s closing levels in the first hour and
closed 14.90 higher at 1524.50.
T-bonds
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stronger aspects of Friday’s economic data, sold futures. The September contract
made good on a Turtle Soup Plus One
Sell setup and closed 29/32 lower at 97 17/32.
Grains made good on their negative
TradingMarkets.com
Futures
Trend Matrix and Implosion-5
List readings. Favorable growing conditions continued to provide a positive
outlook for excellent crop yields, which put downside pressure on corn, soybeans and wheat.
December wheat
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164 1/4 and
soybeans
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SQ0 |
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Pork contracts recovered from two limit-down days as higher temperatures slowed
animal marketings. August lean hogs
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began making headway back into a gap left two days ago.
September sugar
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PowerRating), from the Momentum-5
List, traded an inside day at contract highs and closed down two ticks at
9.20.