Violence Mars Markets
A fresh round of violence in Israel and a possible
suicide terrorist attack on a US vessel in the Middle East are spiking energy
prices up to contract highs. The confluence of events in the Middle East is
impacting multiple markets, including stock indexes, bonds, and gold.
Energy contracts left multiple signals that they were
prepped to rally. All four of the energies either registered on the Momentum-5
List or the
New 10-Day Highs List. Additionally, crude oil
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unleaded gasoline
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Futures
Trend Matrix. The energies all made good on Off The Blocks
setup entries, a strategy which gets you in on Momentum setups.Â
Higher energy prices have ratcheted up the specter of
higher inflation.
Dow futures
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selling off. An earnings warning by Home Depot
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retail components and has Dow futures down over 300 points. Spoos
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have flirted with their lowest levels of the year.
NASDAQ 100 futures
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strength in JDSU and SDLI and moderate losses in the largest weighted
components.Â
Both December T-bonds
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are rallying on safe-haven buying. T-bonds are also on the
New 10-Day Highs List and gold is making good off a Turtle Soup Plus One buy
signal logged three days ago and double bottom as traders sidelined from the
worst (Nasdaq) market since 1974 look for a place to park funds. As mentioned in
our Financial
Futures Pre-Opening Outlook, it would not “take much flow toward a
slack market like gold to boost prices.”Â
Finally, corn, which just ascended to the Momentum-5
List, gapped open to a new three-month high following a bullish USDA
report.Â