Extreme Prejudice

  • December 22, 2000
  • Marc Dupee

In an event that has never occurred with
TradingMarkets.com’s
Market
Bias Indicators, we have a whopping six up signals, demonstrating an
extreme upside bias and reversal. Stock index futures shot higher out of the
gate. Go-go names that logged breathtaking gains last year during the heat of
the hottest bull market in Nasdaq history screamed up, provided entry and kept
on ticking. Nasdaq 100 gleamer Juniper Networks
(
JNPR |
Quote |
Chart |
News |
PowerRating) was a case in point,
with its price action approximating that of the March futures: gap open,
pullback entry, Slim Jim on high, then follow through to bigger gains. 

Spooz
(
SPH1 |
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News |
PowerRating) and Dow futures
(
DJH1 |
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PowerRating) are also up
sharply. 

Oil, gasoline, and heating oil futures are up sharply on
talk of an OPEC cutback in output following next month’s meeting of the cartel.
Crude and heating oil are each up 3%. 

Traders dog-piled into currencies in overnight trade,
gapping the March
euro FX futures
(
ECH1 |
Quote |
Chart |
News |
PowerRating) steeply higher. Euro FX’s,
Swiss francs
(
SFH1 |
Quote |
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News |
PowerRating), and the British pound
(
BPH1 |
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News |
PowerRating) are all on the
New 10-Day Highs List and the  ECH and SFH are on the Momentum-5
List. 

March dollar index futures
(
DXH1 |
Quote |
Chart |
News |
PowerRating), naturally, are taking the brunt of
the strong upside activity in continental currency futures. The perception is
that the European Central bank will keep their rates relatively high as the US
eases rates. Foreign currencies benefit when their domestic interest rates are
higher because they attract funds seeking the higher returns.

T-bonds
(
USH1 |
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News |
PowerRating) and 10-year notes
(
TYH1 |
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Chart |
News |
PowerRating) are confirming the belief
that US rates will fall. Both contracts are also on the Momentum-5
List.