Market Irony

  • October 19, 2000
  • Marc Dupee

Euphoria returned to tech on the 13th anniversary of one of the worst market crashes in Wall Street history, October 19, 1987.
Earnings results 12% to 15% greater than expectations by bellwethers Microsoft
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back into the buyers pool as big spenders swooped in to snap up the software
maker at a two-year bargain priced in the $50 range and to buy almost any kind of
tech issue. 

Semiconductors went into overdrive, cranking the broadest
measure of chip stocks, the Philadelphia Semiconductor Index
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record 17% after heavies Texas Instruments
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the index also outdid analysts’ expectations. 

It is ironic that on the exact Fibonacci anniversary of
the biggest market decline in modern history that
NASDAQ 100 futures
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did not look back from their Turtle Soup Plus One Buy
 signal and rallied well beyond their powerful 20-point gap-opening to
close 48.70 higher at 1401.50. Dow futures
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Microsoft turnaround, handing in a triple-digit ,202.0 gain to 10,245.0.

Four up signals from the
Market
Bias Indicators Page, a high number, were an additional sign that stock index futures could
rally.  

Comments before the Cato Institute by Fed Chairman
Greenspan egged on stock index futures while promoting a rally in December
T-bonds
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increase productivity and that the US economy hasn’t been too severely impacted
by rising oil prices, citing imbalances that may have occurred due to household and dealer hoarding. Bonds are on the Momentum-5
List, and made good on an Off The Blocks
setup after gapping down and then breaking out above Wednesday’s last hour-high.

Energy contracts made some headway out of a (Cooper) 1-2-3-4 Pullback From Highs
setup, but once November crude oil was unable to trade higher than 34.30 in an
intraday rounded-top formation, energies fell. Greenspan’s comments about oil,
and a short-term perception that energy stockpiles could improve due to warm
weather–despite Tuesday’s American Petroleum Institute report showing stockpiles
at 24-year lows–also helped energy prices to fall. Crude oil
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fell .57 to 32.91, heating oil
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unleaded gasoline
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natural gas
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In the meats, note that feeders and lives are both
set up at their handle pivots of cup-and-handle patterns. Both contracts fell
slightly.Â