Bonds and Stock Indexes Sink On Rate Concerns
T-bonds [USZ9>USZ9] closed at a life-of contract low ahead of retail sales and Producer Price figures scheduled for release this Thursday and Friday, respectively. The view is that the data will show inflation creeping into the economy and prompt the Fed to raise interest rates. The December contract hit a new low of 111 29/32 before closing down 11/32 at 112 07/32.
Three Connors VIX Reversal readings from the HREF=”https://tradingmarkets.com.site/eminis/indicators/actionsigs/mbias.cfm”>Market Bias Indicators implied a strong likelihood of stock index futures trading lower today.
December Dow futures [DJZ9>DJZ9] fell 213.0 to 10,498 and the S&P futures [SPZ9>SPZ9] lost 21.00 to 1326.00. NASDAQ 100 futures [NDZ9>NDZ9] gave another signal and made good on a Turtle Soup Plus One Sell (reversal) set up, ending 52.50 lower at 2559.50.
The December Japanese yen [JYZ9>JYZ9], Swiss franc [SFZ9>SFZ9] and
British pound [BPZ9>BPZ9] all turned in solid rallies (moving .0066 to .0103 higher), sending dollar index futures [DXZ9>DXZ9] down .76 to a life-of-contract closing low of 97.67.
Despite evidence of OPEC cheating on production quotas and statistics showing growing energy inventories, energies gapped higher and posted substantial gains. November crude [CLX9>CLX9] ended 1.03 higher at 22.30, unleaded gas [HUX9>HUX9] gained .0274 to .6300 and heating oil [HOX9>HOX9] rose .0302 to .5790. Natural gas [NGX9>NGX9] also closed at a 10-day high, up .102 to 2.927.
Copper [HGZ9>HGZ9] was the big story in the metals, bouncing off one-month lows established yesterday to end 2.80 higher at 78.70.
December gold [GCZ9>GCZ9] fell 2.1 to 318.2 and silver [SIZ9>SIZ9] gained 3.5 to 556.7.
Grain contracts have been poised to move after appearing for several days on the Multiple Days Low Volatility List. December soymeal [SMZ9>SMZ9], which also indicated direction by registering on the Momentum-5 List, gained 2.9 to close at 156.2. November soybeans [SX9>SX9] rose 6 1/4 to 499 1/2, wheat [WZ9>WZ9] gained 4 to 257 1/2 and corn [CZ9>CZ9] added 2 1/2 to 201 1/4.
The meats posted across-the-board gains. December live cattle [LCZ9>LCZ9], from the Momentum-5 List, rallied .475 to a new closing high of 70.225, November feeder cattle [FCX9>FCX9] played catch up after lapping down to end with a modest gain of .175 at 82.550. December lean hogs [LHZ9>LHZ9] approached their daily trading limit, climbing 1.875 to 46.750 and February pork bellies [PBG0>PBG0] moved up 2.175 to 64.200.
Coffee [KCZ9>KCZ9] soared for a third consecutive day, closing at the top of its range, up 5.60 at 96.55 (the December contract also registered on the Momentum-5 List). Cocoa [CCZ9>CCZ9] added 16 to close at 949.