Belly Flop
Lean hogs
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flopped as pork contracts spiraled from the opening print and buyers stepped aside of a southbound freight train in pork contracts. December hogs and February 2002 pork bellies
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each closed down their daily limit.
Hogs, which registered on the
Implosion-5 List and made good on an Off The Blocks
short entry, set the tone with a quick downdraft. Bellies followed suit.
The Pre-Opening
Agricultural Futures Outlook pointed out, “As long as weights and
slaughter continue to come in above expectations, buyers will be scarce and
sellers active.” Heavy weights amid perceptions of declining demand
exacted a fundamental toll on pork as contracts settled at levels last seen
in the final days of spring.
Grain continued to suffer from Friday’s USDA crop
report which suggested bountiful soybean harvests here and in Brazil, the
world’s second-largest producer behind the US, will drive prices down.
Grains broadcast direction by figuring prominently on the
Implosion-5 (November soybeans
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and
New 10-Day Low lists (soy meal
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beans and bean oil). Contracts that display on these lists are candidates
for Off The Blocks
shorts and all four made good on the pattern.
From the Pullback From Highs List,
10-year notes
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by trading above the highs of the low bars in their pullbacks and closed at
the top of their ranges. Ten-years added 16/32 to 109 2/32 and T-bonds
climbed 21/32 to 106 1/32.
With four down indicators from the Market
Bias Indicators Page, stock index futures gapped down after a weekend of
anthrax worry and jitters about the heaviest week of earnings announcement
this quarter. But upside momentum is still on display in the three most
closely watched contracts, despite the overbought conditions highlighted by
the four Market Bias Indicators’ up signals. Nasdaq 100 futures
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lead by fighting back to just a fractional loss and S&P
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and
Dow futures
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nearly flat.