Gone Hog Wild

  • March 1, 2001
  • Marc Dupee

April lean hogs
(
LHJ1 |
Quote |
Chart |
News |
PowerRating) are rallying for the
12th time in 11 sessions to new contract highs. Hogs are the leading
contract on the Momentum-5
List. A cold winter has lowered the weights of hogs–reducing the total
supply of pork–to negatively impact the hog situation domestically.
Internationally, an outbreak of foot-and-mouth disease in the United Kingdom and
recent reports of an outbreak in Ireland are enhancing the appeal of pork as a
substitute meat. The mad cow disease scare also looms large over European meats.
Hogs are trading on the top of their morning range and made good on an Off The Blocks
 entry. 

March pork bellies
(
PBH1 |
Quote |
Chart |
News |
PowerRating) are slightly higher
as well, up .700 at 76.850.

Signs that the economy is performing slightly better than
believed spurred gap-up openings in interest rate futures. Both

T-bonds
(
USH1 |
Quote |
Chart |
News |
PowerRating) and

10-year notes
(
TYH1 |
Quote |
Chart |
News |
PowerRating) had hit New 10-Day Highs
yesterday. Consumer spending was the highest in four months, construction
spending hit a 10-year high, and the National Association of Purchasing Managers
report was not as weak as many feared.  

Stock index futures continue to bleed lower following Fed
Chairman Greenspan’s comments yesterday that dashed hopes that the Fed would cut
interest before its March 20 meeting. Today’s economic data is hurting stocks
too because the flickers of economic strength in the data reduce the chance the
Fed will cut rates as aggressively as the market would like.  


Nasdaq 100 futures
(
NDH1 |
Quote |
Chart |
News |
PowerRating) are setting contract lows and
S&P futures
(
SPH1 |
Quote |
Chart |
News |
PowerRating)–both Implosion-5
markets–are trading on the bottom of today’s range, testing the Feb. 23
lows. 

Soybean oil‘s
(
BOK1 |
Quote |
Chart |
News |
PowerRating) recent lapping,
gapping and expansion-bar chart signals indicate this that this Momentum-5,
New 10-Day Highs,
and Multiple Days Low
Volatility market could be a runaway.