Where Profit Takers Are Cashing In

Profit-takers cashed in on today’s futures
trading, as the second estimate of U.S. GDP came in at a 4.0% annual rate, up
slightly from the previous estimate. GDP in the third quarter was up 3.2% from
one year ago. The major future indices for Dec. were lower and the December
Treasuries were higher.

The Dec. 10 year T-notes
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rose
higher with talk that the economy will get slow again. TYZ2 closed at 113 145 up
+255. The Dec. 30-year bond
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closed at 110 ’29 up +1 ’02.

U.S. corporate profits were down 1.8% in the
third quarter, but are still up 12.2% from a year ago and U.S. consumer
confidence was 84.1 in November, up from 79.6 in October. The Dec. S&P 500
futures

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pulled back by 18.20 to 911.50, just above its 20-day
EMA. Tomorrow will be a shortened trading day in the bond market, so we could
see more weakness in the futures.

In a separate economic report, new home sales
were at an annual rate of 1.007 million units in October, down 4.5% from
November’s pace. So far this year, new home sales are up 7% from a year ago.

The Nasdaq 100 for Dec.
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dropped 38 points or 3.37% to 1088.50. The NDZ2 has held up well above its
20-day EMA at 1051.70.

Crude oil rose in today’s trade, higher
with U.N. inspections in Iraq scheduled to begin tomorrow. Jan. crude oil
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rose .28 cents or 1.11% to $26.39 a barrel.

Jan. heating oil
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gained .77 of a cent or 1.03% to end today’s
session at 75.29 a gallon and Jan. unleaded
gasoline

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rose .72 or 1.02% to 71.40 a gallon.

Yesterday’s 6 to 10 day forecast calls for below average temperatures in the
eastern third of the U.S.,but
Jan. natural gas
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dropped .08 or 1.92% to 4.24.

At the Chicago Board Of Trade (CBOT),

Jan. soybeans
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rose 1 1/4 cents to $5.73 1/2 a bushel



Dec. soy meal

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dropped .90 to 166.80




March

corn

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dropped .25 of a cent to $2.44 1/2


March wheat futures
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lost .05 cents or 1.30% to $3.78 1/2
a bushel.

In the metals, Dec. gold
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dropped just .10 cents to $317.80 a troy ounce


and Mar. silver
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dropped 4.70 cents or 1.05% to $4.45 an ounce.

Despite the positive GDP report,

Dec. copper
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lost
.80 of a cent or 1.09% to close at 72.79.

March coffee
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traded positive
gaining .75 or 1.08% to close at 70.50 above the 70 support level. March cocoa

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dropped $15.00 to $1691.

Be aware that some markets have early
closings Wednesday Nov. 27 and Friday Nov. 29.