New Hope For Tech
Positive interpretations of developments in a pair of the largest capitalized
stocks on the Nasdaq 100
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PowerRating) breathed new life into tech issues and
propelled the index’s September futures
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weeks.
Cisco
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down, a dramatic sales slump hamstringing corporate profits had
“stabilized.” Many interpreted this as the type of news that implied a
bottom may be near in the “tech wreck,” spurring buying.
News that Microsoft
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weighting, would release a new operating system and would have its antitrust
case remanded to a lower court also brought out buyers.
Notice that tech futures’ decline halted at the 168% retracement of the July
24 low to the Aug 3 high. The Sep Nasdaq 100 futures closed up 80.00 at 1582.00.
S&P 500 futures
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1187.50. The best trade in the spooze was probably an opening-range trade. In
this trade, used by some pit veterans, if the SPU does not exceed the extreme of
the opening range by more than 1.60, than one enters the market. Here, the low
of the opening-range five-minute bar was 1166 even. The next five-minute bar
traded to a low of 1165 even, an area where one would consider entering long,
and rallied to close just off session highs.
T-bonds had their worst day in weeks as traders got out of
“safe-haven” positions to go long stock and indexes. T-bonds
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fell three-quarters of a point before recovering to close down 14/32 at 105 0/32 and
made good on their Turtle Soup Plus One Sell Reversal.
Gasoline futures closed sharply higher, adding nearly 4% on the session, and
extended a
one-week rally that lifted the October contract
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PowerRating) 10% on
the week. One of the key features of the unleaded gasoline futures contract
traded in New York is that the
deliverable grade is the cleaner-burning, reformulated gasoline required in
certain metropolitan areas. Chicago requires reformulated gasoline and today’s
spike came on a report that a refiner in the area will be out of
commission for up to six months.
From the Pullback From Highs List, October heating oil also rallied to a
multi-month high. Both contracts pulled back from the previous 20-day highs
from last week in same-day, Turtle Soup Sell reversal setups.