Bellies Go Limit Up, Oil Hits New High
An unexpected surge in demand for bacon continues to drive pork bellies to new two-year highs. The February contract, which registered on the Momentum-5 List, moved higher for a sixth consecutive day and gained 3.000 (their daily limit) to close at 77.275.
December lean hogs [LHZ9>LHZ9] moved higher with bellies, gaining .925 to 51.250.
Also from the Momentum-5 List,
coffee is trading at a contract high.
December T-bonds [USZ9>USZ9] traded within a narrow range ahead of the Federal Reserve’s FOMC meeting and closed down 1/32 at 114 29/32.
Stock index futures also bided time ahead of the FOMC meeting. December Dow futures [DJZ9>DJZ9] fell 7.0 to 10,825, the S&P futures [SPZ9>SPZ9] gained 1.40 to 1403.00 and NASDAQ 100 futures [NDZ9>NDZ9] slipped 11.50 to 2897.00.
December dollar index futures [DXZ9>DXZ9] traded within a narrow range (forming an inside day near Friday’s two-month high) and closed down .11 at 100.54. December British pounds [BPZ9>BPZ9] rallied .0054 to 1.6216.
December crude oil [CLZ9>CLZ9] gapped open above the $25 mark and rallied .22 to close at a 30-month high of 25.13. An International Energy Agency (IEA) report issued last week showing tighter supplies and higher demand continues effecting the market. Cold weather helped drive heating oil [HOZ9>HOZ9] to new highs. Still, the December contract closed near its lows of the day, ending the day .0032 higher at .6654. Natural gas [NGZ9>NGZ9] closed near its recent low, losing .125 to 2.524.
In the metals, December silver [SIZ9>SIZ9] rose 4.3 to 509.8 and copper [HGZ9>HGZ9] gained .95 to 78.20.
The grains made a big move off recent lows. December wheat [WZ9>WZ9] gained 5 3/4 to 250, January soybeans [SF0>SF0] added 6 1/2 to close at 469 1/4 and soybean oil [BOZ9>BOZ9] gained .18 to 15.94.
From the Momentum-5 List, coffee [KCZ9>KCZ9] rallied to a new contract high and ended 6.30 higher at 128.80 (the December contract has developed a strong trend as reflected by an HREF=”https://tradingmarkets.com.site/eminis/indicators/actionsigs/adxc.cfm”>ADX Reading of 35).
From the Implosion-5 List,
December cocoa [CCZ9>CCZ9] hit a new low of 783 but bounced back to finish down just 3 at 792.
Finally, November orange juice [OJF0>OJF0], which registered on the Turtle Soup Plus One Sell List today, spiked up to a new high but had a weak finish, closing down .70 at 95.85. Given today’s pattern, orange juice could still make good on the signal tomorrow.