Naz Screams Again
Nasdaq 100 futures strung together their first
back-to-back gains this month, rallying into triple digits, but came back to
opening gap-up levels by the close of equities trading and dipped to leave a
tail that looks like it wants to fill the morning gap.
Stellar earnings from
Ciena
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technology in the driver’s seat for the second straight day. Ciena, a second-tier Nasdaq 100 stock
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better-than-expected earnings yesterday to beat the Street.
The market also got more reassurance from a Federal Reserve Bank official that
the economy is not in as bad of shape as traders had been pricing into the
market.
Nasdaq 100 futures
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122-point peak to end up 44.00 at 2360.00. S&P futures
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gained 13.20 to 1333.00, and
Dow futures
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Echoing Central Bank Chief Alan Greenspan’s comments this
week to the Senate that the economy is not as bad as the market has discounted,
Richmond Fed President Alfred Broaddus said Thursday in remarks at a college in
Greensboro, N.C. that pundits have portrayed a “darker picture” about
the economy than is actually the case. Broaddus also commented that the economy
will improve in the second half of the year.
March Federal
Funds futures
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accurate forecaster of likely Federal Reserve interest rate moves, fell for a
fourth day, pricing in a reduced probability that the Fed will cut rates by 50
basis points at its March meeting.
10-year notes
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New 10-Day Low List, sank and made good on an Off The Blocks
setup, a trading strategy that takes advantage of short-term momentum. T-bonds
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also hit a 10-day low and fell more than a point before settling 26/32 lower at
103 7/32.
March dollar index futures
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against
euro FX futures
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interest rates. Broaddus’ and another Fed official Poole’s pro-economy comments
enhanced perception that the US economic slowdown will soon abate. Their
statements worked to reinforce Greenspan’s comments to the Senate Banking
Committee earlier this week. Interestingly, Greenspan said that the Q4 slow down was due
in part to the weather, which in
November and December was the coldest in recent history. A relatively stronger
economy will keep the interest rate differential between the US and Europe
narrower and attract funds to the US. The ECH1 is down .01570 to .90390. Swiss francs
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fell .0096 to .5912 while dollar index futures
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at 113.26.
As the dollar strengthened, April gold
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collapsed and exceed the measured move objective of 260.0 of its fractal pattern described in
futures Recaps earlier this month. April, from the
Implosion-5 List,
closed 4.3 lower at 256.9.
Finally,
April lean hogs
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List, nearly matched a contract high and closed .625 higher at 59.225.