Greenspan Turns Stock Index Futures Red
Stock index futures are continuing lower after a late-session tumble Wednesday
that developed in the aftermath of the Federal Reserve’s decision to leave
interest rates unchanged. The market seems to be saying that the Fed may have
raised rates too much, perhaps slowing the economy excessively. Lewis Borsellino
pointed out in his commentaries Wednesday that the move in the last hour of
trading in the S&Ps usually carries over into the next session.Â
Interest rate traders are buying bonds after Greenspan’s and
the Fed’s decision to leave rates unchanged. Bond traders will jump in early,
buying in hopes of getting good prices once they are convinced the Fed is
finished with a rate-rising campaign.Â
Sugar came back onto the Momentum-5
List Thursday, gapped open and is trading at the top of its daily
range. Contracts such as sugar that first appear, or resume their standing on the
Momentum-5 List are usually good candidates for follow-through momentum trades.
You can get in on momentum trades by utilizing my Off
The Blocks method.Â
Soybeans are moving higher after a two week implosion that
took contracts to their lows of the year. Hotter weather is the catalyst for the
move up as well as position squaring ahead of Friday’s Department of
Agriculture’s quarterly stocks and planted acreage reports.Â
From the
Implosion-5 List
and, with a down rating on the
Futures
Trend Matrix, December cotton is moving lower for a seventh day.Â