Foreigners Swoop Up Stocks And Dollars

• October 18, 2000
• Marc Dupee

Foreigners found value when the Dow opened over 435 lower on IBM’s
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slowdown. Twenty minutes into the stocks session, after the specialists finally
opened all the Dow stocks to determine the true low of the session, the blue-chip average found its low and recovered more than half of the early morning losses.
Dollar index futures
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seven-month lows. The currencies getting hit the hardest are those most heavily
weighted against the dollar index, the euro FX
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which are each down, 2% and 1%, respectively. The tenuous situation in the euro FX has
been pointed out in recent installations of the Futures
Market Trading Outlook. 

T-bonds
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List, rallied up to resistance at recent highs as traders scrambled for
the perceived safety of bonds. The contract, however, is turning around and has
back all but 7 ticks of gains and is now trading at 100 10/32. The possibility
of this scenario unfolding was also highlighted in the Outlook, 

“Look for T-bonds to continue
resistance in the 100 21/32 area on more safe-haven buying in the event of any
negative or neutral news. It is from that area that      
the December contract (USZ0)
is more likely to reverse (the contract is currently showing a Turtle
Soup Plus One Sell). Expensive oil, poor corporate
earnings, Middle East violence, and
stock option expiration are all making the perceived stability of bonds
attractive.”

Bear in mind that the negative showing in stock index
futures has been glaringly hinted at on the
Implosion-5 List,
where both the S&P
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Dow futures
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 Also potentially exacerbating the downside for the euro is the rally
Wednesday in energies. Crude oil
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up .51 to 33.50 after the weekly American Petroleum Institute reported that
stockpiles took an unexpected dip and are now standing at 24-year lows. All of
the energy contracts are on the Pullback From Highs
List and November heating oil
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(along with crude) and are up .0128 and .0207, respectively.