With Representation, Less Taxation
T-bonds
(
USH1 |
Quote |
Chart |
News |
PowerRating) and
10-year notes
(
TYH1 |
Quote |
Chart |
News |
PowerRating) rallied out of
Pullback From Highs
setups to close at contract highs. Interest rate futures were bolstered by the positive impact a Bush presidency is likely to have on
the economy and, by extension, the bond market. Bush has proposed cutting taxes
from the current top tax rate of 39% to 33%. The view is that lower taxes will
spur economic growth which will keep tax dollars rolling into government coffers
at a greater pace than if taxes remain at current levels. Higher tax receipts
would keep the budget surplus growing
and permit the government to continue paying down debt. T-bonds closed 21/32
lower at 104 32/32 and 10-years finished 15/32 lower at 103 31/32.
Stock index futures closed lower with the Dow futures
(
DJH1 |
Quote |
Chart |
News |
PowerRating)
rolling over after initial triple digit gains. Nasdaq 100
(
NDH1 |
Quote |
Chart |
News |
PowerRating) futures
got hit by warnings from Compaq and a bevy of lesser tech companies and by a
downgrade in the semi equipment makers. The semiconductors were the weakest area
in today’s market, leading the Naz futures to a close 123.00 lower at 2797.00. A Bush win is apparently already priced
into stocks and three negative signals from the
Market
Bias Indicators Page suggested stock index futures could decline. The S&Ps
(
SPH1 |
Quote |
Chart |
News |
PowerRating) slipped 21.50 to 1377.80.
Carolyn Boroden pointed out in her
Futures
Perspectives yesterday that the 3015-45 area held and that the 2976 area
broke down, suggesting a move lower in March Nasdaq 100 futures.Â
From the Pullback From Lows List,
the Japanese yen
(
JYH1 |
Quote |
Chart |
News |
PowerRating) closed at a new contract low after a
survey on business confidence sank. The survey signals that the Japanese economy
will likely weaken in coming quarters. Yen closed .0081 lower at
.9033.Â
Energies fell
despite inventories dropping nearly three times expectations in the wake of
extreme cold and higher use of heating fuels. January crude oil
(
CLF1 |
Quote |
Chart |
News |
PowerRating) traded just above a cluster pointed out by Carolyn Boroden in her Futures
Perspectives. The top of the cluster she pointed out was 29.88. Crude traded
to a high of 29.98 before tumbling to settle .94 lower at 28.74. Heating oil
(
HOF1 |
Quote |
Chart |
News |
PowerRating)Â fell
even more, .0515, or 5.3%, to .9097. Natural gas
(
NGF1 |
Quote |
Chart |
News |
PowerRating) shaved an
additional 7.46% for a two-day haircut of 22%. Warmer weather and an overshoot
to all-time records were reasons for the decline.Â
March sugar
(
SBH1 |
Quote |
Chart |
News |
PowerRating) dropped out of the
right shoulder of a head-and-shoulders pattern. The futures sank .24, or
2.4%, making a move more consistent with its recent average daily trading
range as volatility reverts to its norm. A larger-than-normal move was indicated
by sugar’s 6/100 Low Volatility
and 10/100 Low Volatility readings.Â
Cocoa
(
CCH1 |
Quote |
Chart |
News |
PowerRating) started moving off lows and
started making good on its Turtle Soup Plus One Buy
signal. The response was weak with a finish just 7 higher at 723.