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Market Updates

Stock futures point to weaker open

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Stock futures are fractionally lower this morning, but below fair value. This has traders looking at a lower open for stocks. S&P futures are currently down 2 points, NASDAQ futures are off 9 points and Dow futures are lower by 13 points. Fair value for the S&P 500 today is $1.62. HL Camp & Company has their computers set for program buying at $2.72 and set for program selling at $0.48.

Bond YIELDS dip near recent lows

Bond YIELDS on some of the major Treasury YIELDS we watch on an hourly and daily basis are nearing their spring lows. The 10- year Treasury Note ($TYX.X) YIELD is falling fractionally this morning to YIELD 4.463% and the 30-year YIELD ($TYX.X) is up fractionally to 5.253%, after falling to a 5.238% YIELD low yesterday. In late March, the 30-year YIELD made a major reversal higher from the 5.217% YIELD level and I think equity bulls will want to see a repeat performance soon. In the last five months, money has poured into the longer-end 30-year driving YIELD down from a high YIELD of 5.901% to current levels.

The shorter-end of the bond market and the 13-week ($IRX.X) is diving this morning to a new YIELD low of 2.00%. Many money market accounts and short-term saving accounts are based off this YIELD and has some investors wondering why money continues to run to the safety of this short-term note if stocks are to be considered a bargain.

Little economic data today

There is no economic data scheduled for today, but traders will get a plethora of data starting tomorrow. Today we may see some continued profit taking ahead of tomorrows economic data, which included ECRI Weekly Leading Index for 09/21/1001, The Conference Board Consumer Confidence for October, GDP for Q3 2001, Chicago PMI for October along with Oil and Gas Inventories for 10/26/01. There will be a lot of data for the market to respond to so keep your stops in place and be willing to book some profits when (long and short) when gains are there.

Jeff Bailey
Senior Market Technician
Option Investor

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