Naz Dogs Bite Back
Stock index futures surged, led by Nasdaq 100 futures
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best showings ever for the contract. NDZ component Juniper Networks
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broke corporate America’s earnings losing streak by nearly doubling analysts’
views, temporarily allaying excess negative pessimism on Wall Street. Juniper’s
earnings blow out got things going for the entire networking sector, as traders
fought
to buy leading tech stocks that will complete the build-out of the Internet.
This translated into a rally among second-tiered stocks
on the the Nasdaq 100,
those issues that have a lesser weighting on the index than such heavies as Microsoft
and Intel. PMC- Sierra
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Applied Micro Circuits
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stocks whose combined NDX weighting is just under 10%, posted gains reminiscent
of last year’s November-to-March frenzy with run-ups ranging from 17 to 32.
Nearly one-year lows in many issues also helped the market
divert its focus from Thursday’s violence in the Middle East that spiked oil up
nearly 10%, while hammering stocks indexes.
NASDAQ 100 futures closed 228.50 higher at 3275.00. The futures sold off after
the market closed (the futures are open until 15 minutes after the close), but
the 273.57 close in the Nasdaq 100 cash (NDX), is a testament to the strong finish
and late surge in this closely followed tech barometer.Â
As Lewis Borsellino pointed out in his Borsellino’s
S&P PM, “dealer buying hit the equity index complex this morning in
the first 30 minutes of trading, leading to a solid move off our recent lows
(as) buy stops were seen in the SPZ around the 1453 level, as dealers
aggressively bid up the market in a fast trade.” September S&P futures
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continued rallying, adding another 18 handles after his post for an impressive
gain of 41.00 on the day to 1385.50.
Dow futures
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One day after violence in the Middle East ignited oil prices,
reversal patterns took hold, prompting energy contracts to change direction
and give back gains won in Thursday’s panicked market environment. November crude oil
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heating oil
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made good on Turtle
Soup Plus One Sell signals, falling 3% to 5.6%.Â
Notably, the November natural gas
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more muted decline of .093 to 5.537, a move that may presage further
upside.Â
March 2000
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List, was also back in rally mode after spiking to contract highs Thursday. Watch
for this contract to continue, as the October 10 gap above the August consolidation range
is a bullish sign. Sugar closed .14 higher at 11.00.