The Hightower Report

STOCKS: A temporary rally before a resumption of the down trend pattern
BONDS: Renewed fears of swelling supply derails classic slowing influences
CURRENCIES: The Dollar feels vulnerable in the wake of the latest bailout
COPPER: Corrective action possible with a temporary rise above 175 Dec
METALS: Expect ongoing gains as flight to quality views remain in place
CATTLE: USDA report supportive for supply; bounce but demand concerns persist
HOGS: More upside ahead but weak world economy may limit upside; chop/higher
BEANS: Lack of follow through on new lows may allow a brief recovery rally.
CORN: Farmers, specs and index funds all have an incentive to sell. Lower.
WHEAT: Friday’s lack of follow-through selling may mean 2-sided trade for now.
ENERGY: Up on easing financial mkt anxiety, cold weather, more OPEC cuts
COTTON: Positive technical action and demand for deliveries; bounce for now
COFFEE: Seems to have enough long-term supportive news to see recovery bounce
SUGAR: Need help from gold and energy to see new buyers emerge; bounce
COCOA: Up on weak $/strong Pound but currency action key to price direction

STOCKS: At least a temporary pause in the selling wave this morning
BONDS: Temporary corrective action given historical gains early this week
CURRENCIES: Temporary corrective setback in the Dollar and Yen
COPPER: Temporary technical bounce today no sign of a major bottom yet
METALS: Expect a temporary bounce but gold should outperform silver
CATTLE: Declining feedlot supply and slow placements may push April to 90.70
HOGS: In position to see further gains as supply of all meats tightens
BEANS: We took out the recent lows overnight. Look for continued erosion.
CORN: New lows yesterday & overnight. Fresh selling from funds – and farmers?
WHEAT: A lower dollar did not provide support overnight. Sell on rallies.
ENERGY: Temporary recovery today mostly off technical balancing
COTTON: Exports better than expected and market holds above Nov 12th lows
COFFEE: No new lows after several attempts; oversold and vulnerable to bounce
SUGAR: Deflationary pressures may persist but buyers should emerge soon
COCOA: Bear market bounce possible if outside market action stays positive

STOCKS: More aggressive downside action ahead as the negatives compound
BONDS: Flight to quality buying to drive yields sharply lower
CURRENCIES: Extreme volatility watch but Dollar and Yen continue to prevail
COPPER: More severe deflationary selling directly ahead
METALS: Extreme chop possible with divergence between gold and silver
CATTLE: Already priced-in bearish demand for holiday; tightening supply ahead
HOGS: Supply to tighten into 2009 but need some pork/poultry exports
BEANS: We took out the top of the week’s range yesterday. Today, the bottom.
CORN: Weak dollar & poor demand point lower. However, sellers may be scarce.
WHEAT: Pressure coming from the dollar again. Test of the lows may be coming.
ENERGY: The bear camp holds almost all of the cards again today
COTTON: Big stocks and weakening global demand to keep pressure on; 37.57 Obj
COFFEE: Not enough support to offset negative outside market forces
SUGAR: Weakening outside market forces pull futures down despite positive news
COCOA: Currency markets will have key influence on cocoa price direction

STOCKS: The bears have the floor expect more range down action ahead
BONDS: Persistent news of fresh layoffs ahead the bulls retain control
CURRENCIES: Primary leadership currency is the Yen and then the US Dollar
COPPER: Rising supply and slumping demand leaves the bears in control
METALS: Too much slowing and a higher Dollar leaves the bears in control
CATTLE: Demand tone to keep rallies shallow, higher $ to support more imports
HOGS: Longer-term bullish supply set-up but still absorbing upfront supply
BEANS: Until the dollar turns, deflationary pricing continues
CORN: Prices advanced yesterday, but that may be all for now until $ turns
WHEAT: Wheat still looks to be bottoming. The dollar may have the final say.
ENERGY: More demand destruction and almost no concern for supply threats
COTTON: Still no sign of low but Texas harvest slow and technically oversold
COFFEE: Focus on 2009 crop would help support but short-term cash news weak
SUGAR: Positive fundamental set-up but outside forces holding sugar down
COCOA: Positive technical setup, tighter supplies to provide temporary lift

STOCKS: Patently negative psychology clears the way for more declines
BONDS: Minor back & fill possible in the wake of #’s but the bias is still up
CURRENCIES: The edge remains with the Dollar and the Yen
COPPER: Too much slowing talk expect a new low sometime this week
METALS: The fear of more slowing should leave the bear camp in control
CATTLE: Beef bounce not likely to hold and cash falls despite tighter supply
HOGS: Could be a lot more selling from funds before market bottoms; weak
BEANS: Weakness in the dollar could result in a small bounce.
CORN: We remain cautious buyers, but a stronger dollar would spoil the party.
WHEAT: Wheat may be bottoming. Traders can buy on strength or on a setback.
ENERGY: Ineffective G20 meeting leaves oil demand environment bearish
COTTON: Managed funds still only short 3,800 contracts; more selling ahead
COFFEE: Enough longer-term bullish news and oversold condition may support
SUGAR: While stocks are high, two years of demand under supply should support
COCOA: Limited Technical recovery looks possible amid tightening supplies

STOCKS: The bulls have the edge unless a key US failure alters sentiment
BONDS: Chinese stimulus and the G20 give the bear camp the edge today
CURRENCIES: Initial weakness in the Dollar & Yen with C$ and Euro benefactors
COPPER: The bulls have the edge off temporary macro economic optimism
METALS: The bulls have the edge off several different angles
CATTLE: Declining supply, better than expected demand to support; buy breaks
HOGS: Technical action improves and cash trying to stabilize; building base?
BEANS: Increased evidence that the soybean complex is trying to turn up.
CORN: Markets look ready to rally on any good news, but corn should lag.
WHEAT: We did not extend the lows on Friday. The next move may be higher.
ENERGY: Global econ stimulative efforts tempering extreme negative demand view
COTTON: Oversold ahead of USDA reports; bounce with China news?
COFFEE: Vietnam crop misses weather but outside forces positive; more up
SUGAR: Enough positive news to support another leg higher; 13.48 next
COCOA: Short covering on weak Dollar & global efforts to mitigate a recession

STOCKS: The bears have the ball expect declines back to consolidation lows
BONDS: The bias is up but we still think rallies will fail to hold
CURRENCIES: Expect the Swiss and the Yen to be the leadership currencies
COPPER: The bears have the internal and external news flow edge
METALS: The fear of slowing leaves the metals vulnerable directly ahead
CATTLE: Impressive run-up in beef to support higher cash this week but next?
HOGS: Still no sign of near-term low for pork or for hams; getting oversold
BEANS: The weak economic picture trumps everything. A test of the lows likely.
CORN: Corn is in an eroding mode. We would not stand in the way just yet.
WHEAT: We got our weakness signal and are waiting for a test of the lows.
ENERGY: Deflationary and slowing fears leave the bears with the edge today
COTTON: More down as lower demand could force ending stocks higher; again
COFFEE: Watch for choppy to lower trade ahead as market absorbs supply
SUGAR: Somewhat overbought and declining OI but longer-term trend looks up
COCOA: Demand worries still seem to be outweighing tightening supply situation

STOCKS: For the coming 24 hours the market can “kid” itself with a rally
BONDS: Fleeting rallies should be sold using call option protection
CURRENCIES: A temporary lull in global recession fears because of the election
COPPER: The bulls have the near term edge
METALS: A temporary window of control ahead for the bull camp
CATTLE: Commercial and spec buying on tighter feedlot supply but total meat?
HOGS: Cash still in downtrend and export demand weak; more down
BEANS: Did the rally fail, or is it simply pausing? It may tell us today.
CORN: Which way will we go? We say down, but a sell signal at 394 would help.
WHEAT: Sell on weakness signal at 542 1/2 in the December.
ENERGY: The action in the equity market looks to dominate energy prices today
COTTON: Need to see signs of improving demand before finding floor of support
COFFEE: Big supply could keep buyers on sidelines but tech action positive
SUGAR: Rally with negative outside forces suggests solid internal fundamentals
COCOA: Up if $ stays weak, but bearish demand outlook says gains won’t hold

STOCKS: The bulls maintain an edge but the strength is suspicious
BONDS: Big picture support issues continues to discourage buyers
CURRENCIES: Expect some sideways action as the US election restrains sentiment
COPPER: The trend remains down even if prices manage a temporary bounce
METALS: A temporary window of control ahead for the bull camp
CATTLE: Beef production down 3.5% last week with beef price unchanged; weak
HOGS: Still weak export demand and packer talk of slaughter cut-backs negative
BEANS: Overnight strength disappointing given higher dollar. Test of the lows.
CORN: Still looking to move lower, but would extend objective to 380 or lower.
WHEAT: The dollar took wheat higher overnight. We are still looking to sell.
ENERGY: Need bullish outside market influences to counter bearish demand view
COTTON: Managed funds likely to build a large net short before market oversold
COFFEE: Coffee does not seem to have fundamentals for buyers to press; weak
SUGAR: Sugar has better fundamentals than many commodities; still overbought
COCOA: Look for temporary bounce if Dollar losses mount this session