Natural Gas Re-Detonates
A mid-day report from the American Gas Association added
fresh octane to natural gas, sending the November contract up over 7%. The AGA
report showed that inventories grew at a slower-than-hoped pace, leaving current
stockpiles 13.4% below levels from one year ago, with substitute heating fuel
inventories running at even lower levels. Nat gas bolted out of an inside-day
pullback pattern and closed at a new all-time high, up .374 to 5.508.
The rest of the energy sector also continued warming up.
As mentioned in the Mid-Day
Futures Alert, a confluence of factors are continuing to support the
energies. The weekly
American Petroleum Institute’s (API) report released after Tuesday’s close showed an
unexpected drop in stockpiles of both crude and distillates, and bodes poorly
for energy prices to moderate anytime soon. Exacerbating the situation, the Israeli-Palestine conflict,
a looming oil workers strike in
Venezuela, steady US demand, and early cold weather should leave few willing to
hold short positions. November heating oil
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List, and crude oil and unleaded gasoline each registered on the New 10-Day Highs List
after closing on their highs Tuesday. Crude closed up .07 to 33.25, heating oil
added .0207 to 1.0178, and unleaded gasoline gained .0099 to .9240.
Earnings warnings by Lucent, Motorola
(MOT), Nordstrom (JWN), Alaska (ALK), and Yahoo! (YH00) extended the
negative action that has characterized stock index futures over the past six
weeks. Stock index futures registered numbers one, two and three on the Implosion-5 List
and are continuing to slump Wednesday. One of the best performances in Microsoft
in two months helped
NASDAQ 100 futures
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NDZ in positive territory for much of the session. Three up signals from the
Market
Bias Indicators Page, were the clue that a test of the upside could be in
order. A failure to break above intraday declining quadruple tops resulted in a
late flurry of selling for a negative finish, down 35.50 to 3124.50. September S&P futures
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tumbled as many as 35 before closing 12.20 lower at 1378.80 and
Dow futures
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December 10-year notes
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record as equity bailed out and sought safety in interest rate futures. 10-years
added 5/32 to close at 100 17/32, and December T-bonds
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to a one-tick gain after logging a 10-day high.Â
In the currencies, Swiss francs
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British pound
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traders worried that equity weakness and high oil prices will result in a weaker
dollar while continuing to doubt the euro will be able to muster much of a
better showing. Francs closed .011 higher at .9406 and pounds added .0076 to
1.4622.
Also from the Implosion-5 List, December soybean oil
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fell, and along with the
New 10-Day Low reading from soymealÂ
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in the soy complex. (Notice, however, that wheat is still strong and is the
leading contract on the Momentum-5 List).Â