Naz Futures Manufacture A Comeback
The Nasdaq 100
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comeback Monday that erased some of the losses sustained in a multi-day cascade
that resulted in last week’s second-worst weekly showing ever for the tech
futures.
The National Association of Purchasing Management-Chicago
provided the catalyst for the rally, by showing that the manufacturing survey
fell to its slowest pace in 18 months. Traders viewed the report as helping to
clarify Friday’s surprisingly strong gross domestic product numbers by providing
evidence that the Fed’s year-long campaign of interest rate hikes has been
successful in slowing the economy and staving off suspected inflation. Monday’s
report is also seen as a precursor to Tuesday’s broader measure, the National
Association of Purchasing Management and as a leading indicator to the broader
US economic picture.Â
Other signals from the futures indicators pages also
hinted that the stock index futures could regain lost ground. Two signals from
the
Market
Bias Indicators Page pointing up and Turtle Soup Plus One Buy
readings in both the S&Ps
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suggested stock index futures could trade higher.Â
NASDAQ 100 futures
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3618.00, S&P futures
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retreating late in the session to close 6.90 lower at 1438.90 while Dow futures
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slipped 10.0 to 10,575.0.
Nasdaq 100 futures also presented multiple intraday pattern setups to participate in Monday’s rally.
Dollar index futures
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Sell setup, falling as many as 32 cents on speculation that the European
Central Bank will be more likely to raise continental interest rates following
reports Monday that member countries raised manufacturing prices. The
potentially inflationary development raises the chance that the ECB will raise
interest rates and narrow the gap between US and Euroland rates. Still, the
September contract is in an early flag formation and Monday’s retreat from
20-day highs is likely to be a swing pattern rather than a change in trend. The
September contract closed .15 lower at 109.37.
Scandals and reports of corruption and bribery continue
to weighed on the yen after a gap-up opening, by future on the Japanese currency
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agency responsible for cleaning up the 10s of billion of dollars of bad
debt resigned after admitting he took bribes while a member of parliament.
The yen is on the Implosion-5
List.
Friday’s Commitment of Traders report showed an unsuspected
large number of long contracts held by funds in both coffee and sugar, giving
traders cause to sell. Cocoa also dipped on weakness in coffee and sugar but was
supported by news of a strike and violence in Abidjan, the capital of the
largest producing nation, the Ivory Coast. The overbought situation described in
the COT in sugar also gave longs an excuse to take profit after a 23%,10-day
rally. The October contract closed down .49 at 10.40, at its 10-day moving
average. September coffee
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