T-bonds Pick Up The Slack

Traders took to the safety of T-bonds [USZ9>USZ9] in the wake of yesterday’s bloody day in equities: The December contract ended nearly a point higher at 115 12/32.

Stock index futures continued lower, but probed the upside for a second time late in the session, trimming losses. December Dow futures [DJZ9>DJZ9] ended down 5 at 10,363, the S&Ps [SPZ9>SPZ9] fell 3 to 1288.00 and NASDAQ 100 futures [NDZ9>NDZ9] slipped 7.25 to 2425.25.

December dollar index futures [DXZ9>DXZ9] strengthened, gaining .12 to 99.27. Dave Landry pointed out in last night’sHREF=”/query/indicators/commentary/dlfutoutlook.cfm?link=dlfutoutlook”>Futures Market Trading Outlook that British pounds [BPZ9>BPZ9] were on the Momentum-5 List and were breaking out: today the December contract advanced to a 50-day high. The yen’s [JYZ9>JYZ9] one-tick rise to .9719 belies strength exhibited during pit trading as the contract rallied more than .0050 from opening levels.

Energy contracts closed narrowly mixed. Yesterday’s enthusiastic response to OPEC’s decision to keep production limits in place was dampened today by profit taking and speculation that the US may use strategic reserves to advert any shortfall this winter. November crude [CLX9>CLX9] fell .11 to 24.76 and natural gas [NGX9>NGX9] dropped .015 to 2.913.

December gold [GCZ9>GCZ9], from the Momentum-5 List, rallied for a fifth straight day, adding another 2.5 to close at 269.8. Copper [HGZ9>HGZ9] marched in lockstep-the opposite direction-falling for a fifth day to end down 1.35 at 80.15. Silver [SIZ9>SIZ9] pulled back off 20-day highs for a second session, ending down 2.0 at 525.5.

The grains moved moderately higher: December wheat [WZ9>WZ9] rose 4 1/2 to 277 ¾, corn [CZ9>CZ9] was up as much as 4 but fell back to a fractional gain and November soybeans [SX9>SX9] advanced 2 to 480.

February pork bellies [PBG0>PBG0] rallied their daily limit, finishing at a new 50-day high.

In soft contracts, December coffee [KCZ9>KCZ9], from the Multiple Days Low Volatility List, had an active day, dropping initially to a new low before rallying to finish higher, up .85 at 84.05. December cocoa [CCZ9>CCZ9] was another active contract, shooting up on a large-range bar to a 20-day high to end up 38 at 1007.

From the Pullback Off Lows List, November orange juice [OJX9>OJX9] fell 2.65 to closed at 91.60.