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What T-bonds Are Saying

  • November 21, 2001
  • Marc Dupee

T-bonds
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days. This
Implosion-5 List market got started on the down side — making good on an Off The Blocks
short — and sank more than a point and a half on a surprising reduction in
the number of initial jobless claims and on stronger consumer
confidence. 

Both economic reports — and T-bonds reaction to the reports — suggest
the economy is rebounding more strongly than anticipated and the vigorous
selling is saying bond traders are beginning to discount an economic
turnaround and a discontinuation of the Fed’s interest rate-easing monetary
policy. 

Euro FX futures
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German business confidence hit an eight-year low and after consumer spending
in France dipped twice as much as expected. Last night’s Futures
Setups observed that “Swiss francs
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back from their recent low and held at the confluence of the touching of
its overhead gap at .6074, the 20-day moving average, and the 61.8%
retracement of its most recent swing. The three factors provide resistance
for this Pullback
From Lows setup.” The Swiss unit is triggering out of its
pullback setup. 

Also from Wednesday’s Futures Setups,
silver
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Implosion-5 List, fell out of its descending triangle and is making good on
an Off The Blocks
short. 

In last night’s Futures
Market Recap, I pointed out some exigencies that suggest Russia will
continue to increase its production until oil drops below $16 a barrel,
hampering any output cutback deal with OPEC.
January crude oil
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is leaving an outside bar at its recent high and is down .30 at 18.85. 

Six down signals in stock index futures on the Market
Bias Indicators Page
 suggested
December Nasdaq 100 futures
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S&P futures
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could decline, and we are seeing a sell-off as traders liquidate positions
the day before the Thanksgiving holiday.Â