Fuller Piggy Bank
Copper gapped down and is continuing lower following a
report of a build up of stocks in London Metals Exchange warehouses. The build up in stocks implies waning
demand during a week where many traders are still on holiday, thinning volume.
Also in the metals,
Pullback From Lows List
market silver came within ticks of its two-year low and is down 3.7 at 465.0. Silver is poised for a larger-than-normal move due to its 6/100 Low Volatility reading.
In the currencies, more news pointing to an imploding
Japanese economy has traders shorting Implosion-5
List member yen .This week’s weak household spending figures and higher
unemployment are being exacerbated by a report out today that showed industrial
output continues to decline. The yen is trading at a contract low. This move
down in the yen will be more supportive of the euro than the dollar. The
dollar is up slightly but remains weak, is on the Implosion-5
List, and is heading south in all timeframes on the
Futures
Trend Matrix.
From the Momentum-5
List, the
British pound
(
BPH1 |
Quote |
Chart |
News |
PowerRating) gapped open and is trading at a new three-month high.
Nourishing rains in the world’s second largest producer of soybeans, Brazil, spurred a strong downmove in a/c/e overnight trading and a limit down move at the Tokyo Grain Exchange. March soybeans
(
SH1 |
Quote |
Chart |
News |
PowerRating) and soymeal
(
SMH1 |
Quote |
Chart |
News |
PowerRating) both gapped lower and are trading down 6 3/4 and 2.8, respectively.
Finally, notice how cocoa
(
CCH1 |
Quote |
Chart |
News |
PowerRating) appears to be
setting up. The March contract hit a New 10-Day Highs and this morning’s Agricultural
Futures Pre-Opening Outlook pointed out that "With fund traders net
short over 21,000 contracts, the upside breakout last week leaves the market
vulnerable to active fund short-covering." Look for a potential
short-squeeze play in this contract.