Streaking Emini Futures
Streaking Eminis
9/19/07
Over the past 9 futures trading days, we have watched the S&P, Nasdaq, and
Dow eminis rise nearly 7%. Can this be attributed to a good run of good
luck? In other words, do we believe that this is part of intermediate cycle
behavior or something kin? Let's look closer.
No News IS Good News
Other than the normal media rambling about housing markets and other markets
that are really all that pertinent to the eminis, it's been kind of quite
lately. A few investment firms like Lehmans, Bear Stearns, and Goldman Sachs
et al have reported some pretty crummy earnings, but other than that, we're
just getting started with 3Q earnings. Nearly 2% of that 7% number was made
in only a few hours after we received notice of the half point rate cut, so
that's easy to pin down. But what can we thank, or attribute to, the other 5
points gained this past week and a half across the board?
It's Just the Nature of Things
Chalk it up to the nature of the beast, but I'd have to say that, with
highly volatile market days behind us, we're getting back to a normal ebb
and flow pattern here. There have not been any knee jerk reactions since the
Fed met and that is just wonderful for emini traders. With the dollar
falling against the other major world currencies and likewise, gold on a
tare, I predict that the emini markets will begin getting just a little more
predictable again. At least for a little while.