Hogs Still Tied Down
October hogs continue freefalling after hitting limit
down levels Tuesday. Lean hogs were on the Pullback From Lows list Tuesday
before hitting their limit locked levels. Wednesday they are the leading
contract on the Implosion-5 List.
For suggestions on how to limit risk and get out of limit locked markets see my
article on Reducing
Risk In Limit Locked Futures Markets. Today’s move also takes lean hogs to a 10-month low and to the completion of a measured move. Measured moves are useful for calculating reward/risk
ratios and planning trades, a concept you may wish to learn further about in my article
Defining
Reward/Risk Ratios In With Chart Setups In The Futures Markets.
Soymeal
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PowerRating) is leading the grains off of contract
lows. Soymeal had been registering on the New 10-day lows list and is now the
leading contract on the Momentum-5
List. The December contract is up 2.6 to 158.4 and rallying for a seventh
consecutive day to the top of a cup formation.
T-bonds
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PowerRating) are reacting negatively to the CPI
figures. The CPI came in as expected but bonds have already largely discounted
subdued inflation, sending the September contract to record highs.
Three negative indicators from the
Market
Bias Indicators Page suggested stock index futures–especially blue
chips–could trade lower.
Dow futures
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PowerRating) are down over 52 and the S&Ps rallied up to the 1503
level but have not been able to hold that level and are now trading in negative
territory.