Today’s sample of Futures Analysis from FuturesHound.com
Today’s surge in the equity futures markets helped stocks recover close to 50% of their recent decline. This move represents optimism about corporate earnings. Traders should watch equity markets carefully after the huge run-up today. The lack of follow-through to the upside could be a sign of weakness, giving traders an excuse to get short again.
December Treasury futures finished the trading day lower. Today’s bullish GDP report has brought the Fed closer to tightening its monetary policy. This is making traders think that interest rates may rise sooner than expected. Furthermore, when equities and commodities move higher, investors start asking for higher yields. This is the reason for the weakness in the December T-Bonds and December T-Notes today.
The U.S. Dollar closed sharply lower against most major currencies with the exception of the December Japanese Yen. It was under tremendous pressure today as traders have increased their demand for higher yielding currencies. Today’s break erased all of the Dollar’s gains from yesterday.
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Equity Traders Optimistic about Earnings after Tod
Posted - October 29 2009 : 18:18:31
