New book by Larry Connors Click here Improve your trading - See how
The "Goldman roll" involves funds shifting some of their spot-December long positions into nearby-February. The first of five days for the roll officially begins Friday and is tied to the S&P's GSCI.
Meanwhile, bearish market factors include potential follow-through selling from Thursday's futures fall and spot-December and nearby-February premiums to CME's hog index.
Front-month hogs are also overbought based on their Relative Strength Index conditions.
And there is concern that pork cutout values could deteriorate if retail buyers begin purchasing fresh meat on an as-needed basis in advance of the Thanksgiving Day holiday.
By the same token, Thursday evening's $0.32 per hundredweight pork cutout price increase which continues to buttress pork packer profit margins is a bullish market influence.
The Dow Jones pork packer margin index for Thursday's operations was plus $5.62, compared with plus $3.18 the previous day.
And, steady-to-firm cash hog price calls along with continued expectations for tighter near-term hog supplies moving forward may motivate bullish speculators.
December's 56.37-cents Oct. 30 low serves as a price support area. The contract has a chart gap between the 56.80 Oct. 29 low and 56.00 Oct. 28 high.
December's 56.14 10-day moving average technical support level is nestled between the Oct. 29 chart gap.
December's 58.25 Nov. 3 high is a price resistance area.
February's 62.89 10-day moving average is an area of support. The 62.67 Oct. 29 low and 62.25 Oct. 28 high defines February's chart gap.
February's 64.25 July 20 and 64.75 Monday highs are price resistance areas.
Pork bellies could open higher on potential short-covering and late-Thursday's $2 per hundredweight fresh belly price hike that might overtake possible selling leftover from February's limit plunge Thursday.
February's 84.33-cents 40-day moving average is a support point. The contract's 85.60 20-day moving average is a resistance mark.
(To access the daily livestock market data recap report, keyword search for "Livestock Market Fundamental Data Recap.")
-By Theopolis Waters; Dow Jones Newswires; 312-559-4965; theopolis.waters@dowjones.com
(END) Dow Jones Newswires
11-06-09 0848ET
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
