Yen-tervention
Traders continued buying Japanese yen futures after the Bank of Japan reportedly spent $4 billion in international markets buying dollars and selling yen in an attempt to weaken the currency.
The December contract [JYZ9>JYZ9] recaptured half of its losses from last night’s intervention during the futures session, then closed at its September 1 high (its pre-GDP rally high), down .0086 at .9315. The yen also found resistance around .9350, its Turtle Soup Plus One sell trigger, following through on that set up intra-day.
A weaker-than-expected core Producer Price Index (PPI) report bolstered the dollar against European currency futures. December dollar index futures [DXZ9>DXZ9] rallied 1.39 to 100.60 as Swiss francs [SFZ9>SFZ9] hit a 20-day low of .6513, a loss of .0145. British pounds also fell [BPZ9>BPZ9] .0164 to 1.6192.
December T-bonds [USZ9>USZ9] liked the PPI report too, advancing 21/32 to 113 31/32.
Stock index futures ended mixed. December Dow futures [DJZ9>DJZ9] fell 25.0 to 11,150, the S&Ps [SPZ9>SPZ9] gained 9.30 to 1369.60 and
NASDAQ 100 futures [NDZ9>NDZ9] ended 31.00 higher at a new high of 2565.75.
Energy contracts rallied to new highs for a fourth consecutive day and finished at the top of their ranges. October unleaded gas [HUV9>HUV9] and heating oil [HOV9>HOV9], from the Momentum-5 List, closed up .0092 and .0095, respectively, and October crude oil [CLV9>CLV9] rallied .35 to 23.55. Natural gas [NGV9>NGV9] went the other way, falling .050 to 2.801.
The metals finished slightly lower. December gold [GCZ9>GCZ9] treaded down .7 to 257.9 and silver [SIZ9>SIZ9] fell 1.5 to 522.5.
Soybeans [SX9>SX9] are set up in a continuation pattern after unraveling from a tightly wound triangle eight days ago. The November contract rallied to close a nickel off its recent high after a two-day pullback, a gain of 8 1/2 to 515 3/4. December soybean oil [BOZ9>BOZ9] broke out to a 50-day high and today’s range expansion suggests a head-and-shoulders bottom pattern might pan out. Soymeal [SMZ9>SMZ9] closed 1.5 higher at 155.4 as well and wheat [WZ9>WZ9] advanced 3 1/4 to 288 1/2.
Feeder cattle showed the potential to make a big move by registering on the 6/100 Low Volatility List last night, and today the October contract [FCV9>FCV9] broke out to a new contract high, gapping up on its final 15-minute bar and finishing at the top of its range, up 1.375 to 80.350. October live cattle [LCV9>LCV9] rallied in sympathy to a new closing high of 68.075, a gain of 1.100. February pork bellies [PBG0>PBG0] gained 1.325 to 54.425.
In his HREF=”/query/indicators/commentary/dlfutoutlook.cfm?link=dlfutoutlook”>Futures Trading Outlook, Dave Landry targeted coffee as a short candidate (after it closed at life-of-contract lows) and orange juice as a possible long. December coffee [KCZ9>KCZ9], from the Implosion-5 List, closed down 1.85 at a new life-of-contract low of 85.35 after rains revived the Brazilian crop.
After a strong up-day yesterday that took it off the 6/100 Low Volatility List, orange juice [OJX9>OJX9] swung widely today, hitting an intra-day high of 97.50 before falling back and ending the day up 1.85 at 95.45. October sugar [SBV9>SBV9] fell .27 to 6.70 and December cocoa [CCZ9>CCZ9] dropped 13 to 947.
Finally, December cotton [CTZ9>CTZ9] gapped up, ending 1.33 higher at 53.87.
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