Browse > Home / Pre-Open / Morning Call: Futures Move Higher On Durable Goods

Morning Call: Futures Move Higher On Durable Goods

August 27, 2008 8:36 AM

pouringcoffee.jpgDurable Goods just came out and were strong and the futures popped up. The futures charts are clearly better to have continued strength than yesterday. We have both yesterday’s low and 1260.50 as a backstop to the downside (1263 and 1261 cash market). To the upside be VERY cautious in the 1285.50 on the futures. We HAVE to clear that number to have any chance of making a run higher.

The big issue with the Durable Goods number is although it was up 1.3%, is that it is driven by business and government spending not consumers. Business spending has been holding up because of the weak dollar and exports. This has little or nothing to do with the real problems in the country and that is real incomes for consumers here continuing to fall. But for now, it is what it is.

45 Minutes before the open we are at 1275 and change. If we open much higher than that be very careful that the gap may be sold, especially if we open near 1280.

Oil may cause some concern if it spikes much higher. it is currently up almost $2 as concerns about the hurricane gain steam.

Written by Tom@StockBlade.com · Filed Under Pre-Open 

Comments

Got something to say?