Downgrade Hurts Yen
Moody’s is expected to downgrade Japan’s credit rating,
sending the yen sharply lower. Japan held elections over the weekend and voted
to retain the Liberal Democratic Party in power. Incumbent Prime Minister Mori
is expected to continue LDP’s program of government spending to boost the
economy and, even without a Moody’s downgrade, the economy, and yen, are
expected to suffer because of growing debt.
A wetter-than-expected weekend is sending grains
tumbling. Soybeans, soymeal and corn are all on the
Implosion-5 List.
Soybeans are trading at their lowest level since December and corn is trading at
a new contract low.
In the meats, pork bellies have traded down their daily
limit and lean hogs are down and making good on their Turtle Soup Plus One
Sell signal below 70.150, the old-20-day low after a mixed USDA
report.
Cocoa continues to make good on its Turtle Soup Plus One
Sell setup triggered two days ago that came after officials in the Ivory
Coast refuted reports from last week of gunshots and tank movements in the
capital.
In the energies, heating oil is making good on its Momentum-5
List and trading at a new contract high. At the same time, unleaded gasoline
is ringing up gains on its Turtle Soup Plus One
Sell setup and natural gas continues falling in its Turtle Soup Plus One
reversal triggered on Friday.