Credit Risk
The yen fell from a two-month high as rumors among
currency dealers circulated that Moody’s or another rating agency could
downgrade Japan’s credit rating. Japan held elections over the weekend and voted
to retain the Liberal Democratic Party in power. Incumbent Prime Minister Mori
is expected to continue the LDP’s program of government spending to boost
the economy and, even without a Moody’s downgrade, the economy and the yen, are
expected to suffer because of growing debt. The yen
(
JYU0 |
Quote |
Chart |
News |
PowerRating)Â closed
down .0097 at .9605.
The euroFX
(
ECU0 |
Quote |
Chart |
News |
PowerRating) moved up slightly despite an
unexpected jump in German producer prices that came in at their highest
level since 1991. From the Pullback From Highs List,
Swiss francs
(
SFU0 |
Quote |
Chart |
News |
PowerRating) also rallied .0025 to .6106.
Interest rate futures stemmed a five-day slide, rallying
ahead of another government buy-back of debt scheduled for later this week. September T-bonds
(
USU0 |
Quote |
Chart |
News |
PowerRating)
climbed 17/32 higher to 96 15/32 and
September 10-year notes
(
TYU0 |
Quote |
Chart |
News |
PowerRating) ran higher, adding 19/32 to 97 31/32.
Stock index futures rallied, led higher by software, biotechs and blue chips
such as Johnson & Johnson and Phillip Morris.
NASDAQ 100 futures
(
NDU0 |
Quote |
Chart |
News |
PowerRating) rallied 99.50 to 3827.50, Dow futures
(
DJU0 |
Quote |
Chart |
News |
PowerRating)
ran 151.0 higher to 10,710.0 and S&P futures
(
SPU0 |
Quote |
Chart |
News |
PowerRating) gained 15.50 to
1479.00.
The energies turned lower from record levels as unleaded gas
(
HUQ0 |
Quote |
Chart |
News |
PowerRating)
made good on a Turtle
Soup Plus One Sell setup, falling .0267 to 1.0023. Crude oil
(
CLQ0 |
Quote |
Chart |
News |
PowerRating)
slipped .62 to 31.63 and
heating oil
(
HOQ0 |
Quote |
Chart |
News |
PowerRating) closed slightly lower. Natural gas
(
NGQ0 |
Quote |
Chart |
News |
PowerRating) rallied
the last two hours to end at a contract closing high, up .104 at 4.520.Â
A wetter-than-expected weekend sent grains to new lows. Soybeans, soymeal and
corn, all registered on the Implosion-5
List. Soybeans
(
SX0 |
Quote |
Chart |
News |
PowerRating) closed at their lowest level since December, down 4
3/4 to 475 and December corn
(
CZO |
Quote |
Chart |
News |
PowerRating) hit a new contract low to
close down 4 1/2 at 214 3/4.
In the meats, pork bellies traded down their daily limit
to close at 84.775 and lean hogs made good on their Turtle
Soup Plus One Sell signal below 70.150, the old-20-day low to close down
1.375 at 69.775.
Cocoa continues to make good on its Turtle
Soup Plus One Sell setup triggered two days ago. Cocoa rallied last week on
reports of gunfire and tank movement in the Ivory Coast, the largest
cocoa-producing nation, but fell after officials refuted reports of unrest in
the capital.