Tuesday’s Hit List
Hogs, down 16% in two weeks, are deeply over sold.
Consider a short-term counter-trend long while losses consolidate.Â
Stock index futures remained resilient despite a
weekend of anthrax, expectations for the worst quarterly corporate earnings
announcements in a decade, and JP Morgan Chase downgrade of the semis. Index
futures fought back to close nearly flat, undoing some of their overbought
situation. These contracts are still Momentum-5 members, making them eligible
for Off The Blocks long entries.Â
T-bonds are at a cross roads. Although they closed
just above their Pullback From Highs Triggers from today, T-bonds were capped at
the close by resistance in the 106 1/32 to 4/32 area. This is a short-term
make-or break point. If we clear 4/32 substantially, look for a re-test of the
gap one whole point higher. Otherwise the same 106 4/32 area presents a
short-term shorting opportunity.Â
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