Stock Indexes Break Down
In one of their biggest declines ever, stock indexes plunged as traders took profits from the biggest bull market in history. Traders are also concerned that the Fed will raise interest in February.
NASDAQ 100 futures [NDH0>NDH0] dropped a whopping 7.47%, or 287.00 to 3557.50. March Dow futures [DJH0>DJH0] also plummeted falling 373.0 to 11,080.0. In the S&P pit [SPH0>SPH0], trading was halted for 10 minutes after the market declined 35 points, triggering a market circuit breaker timeout. The S&Ps closed down 55.00 at 1411.80.
March T-bonds [USH0>USH0] sprang off contract lows, nearly filling the gap left Monday as traders shed stocks and sought the relative safety of bonds. March gained 24/32 to close at 90 20/32.
Dollar index futures [DXH0>DXH0] added .21 to 100.10, rising as the Japanese yen [JYH0>JYH0] took a sharp turn south. The yen, which indicated it was poised to make a large move by registering on the Multiple Days Low Volatility List, closed .0173 lower at .9791. The Bank of Japan sold dollars and bought yen, intervening in an effort to curb the yen’s rise.
The energies closed mixed with February crude [CLG0>CLG0] and heating oil [HOG0>HOG0] falling slightly as unleaded gas [HUG0>HUG0] rose. From the Implosion-5 List, natural gas [NGG0>NGG0] made the biggest move, dropping .153 to 2.176–a new contract low– amid forecasts for continued warm weather across the major consuming regions.
Also from the Multiple Days Low Volatility List, February gold [GCG0>GCGO] sold off as traders closed out short positions taken in anticipation of a run up in prices due to Y2K hysteria: February fell 5.9 to 283.7. Silver [SIH0>SIH0] tanked in sympathy falling as many as 12 before ending down 7.8 at 537.5. Copper [HGH0>HGH0] also fell 1.50 to 84.80.
In the gains, March soybeans [SH0>SH0] rallied 7 to 471 1/2 and soybean oil [BOH0>BOH0] made good on its Turtle Soup Plus One Buy set up, gaining .12 to 15.82.
In the meats, February pork bellies [PBG0>PBG0] gave back 1.325 after rising their daily limit on Monday to end the day at 79.825.
Doubt over the accuracy of Monday’s Commitment of Traders report hit sugar [SBH0>SBH0] as traders expressed concern about the veracity of a reported cut in the number of speculative shorts. Commercials were said to be heavy sellers as March closed .33 lower at 5.787.