Tech Futures Trounced
Nasdaq 100 futures
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plunging after tech companies reporting quarterly corporate results failed to
meet earnings expectations. LSI Logic
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disappointed, triggering downside momentum that reasserted itself–and provided
intraday shorting opportunities–in nearly-textbook pullback setups on the NDU0.
The index has found support at the top of its recent June-July consolidation
shelf at 3500. The Nasdaq 100 registered on the New
10-Day Low List, an indicator that often provides a tip-off to downside
momentum. At this time, none of the dozen big cap techs from the Nasdaq 100
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stocks that collectively comprise 50% of the weighting on the NDX, are up more
than a fraction.Â
Interest rate futures are remaining in a narrow range
near highs, perhaps tipping the hand of what Thursday’s economic data is likely
to show. T-bond futures could rally and test their highs of the year if
Thursday’s employment cost index (ECI) comes in lower than expected and if
durable goods orders slow. The higher lows and flag patterns in T-bond futures
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materialize Wednesday as traders seek to front-run potentially friendly numbers.
T-bond futures
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up 7/32 to 98 31/32 Wednesday morning. Following are the forecasts for
Thursday’s economic data. Durable goods consensus: 0.5%. Employment cost index
consensus: 1.0%. Bonds are on the Momentum-5
List.Â
Also from the Momentum-5
List, sugar remains on a tear, gapping open and spiking to a new
two-and-a-half year high.Â
In currencies, the yen is holding at contract lows as
more unfavorable economic news continues to plague the currency. Tuesday the yen
fell after a ruling Liberal Democratic Party official resigned on corruption
charges. The bankruptcy of retail giant Sago continues to be a negative and was
exacerbated by a poor retail sales number Thursday. Uncertainty is also
surrounding the yen following rumors that a Bank of Japan governor could resign.
The September yen
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the Implosion-5 List.