After opening sharply lower, September E-mini S&P 500 futures rallied from the opening, but failed to take out yesterday’s high at 954.50. Traders participated in the long side up until the time when Fed Chairman Bernanke began his testimony before the Senate Financial Services Committee.
Equity futures have been rallying lately fueled by better than expected earnings. Problems may develop because of the lack of revenue growth however. Earnings have been going up because firms have been slashing expenses.
New money has been coming into the markets from the mutual funds but the current rally still does not look like anyone is chasing prices higher. This usually means higher markets to follow over the long-term.
Short-term, don’t be surprised by a 50% correction of the week’s range sometime today. This means a test of 945.00 in the September E-mini S&P 500 sometime this afternoon.
After a strong really yesterday, September Treasury Bonds and Treasury Notes are feeling downside pressure from profit-taking. Bernanke’s comments yesterday regarding the Fed having the tools to control inflation is potentially bullish news.
August Gold is the surprise mover of the day. This market is currently posting a $5.00 gain despite Bernanke’s testimony that inflation could be brought under control once the economy begins to turn and the Fed begins to implement its exit strategy.
September Crude Oil is recovering losses following an early morning set-back. Traders had taken a defensive position ahead of today’s inventory report. New buyers came in once the report showed that inventories were in line with estimates.
November Soybeans and December Corn continue to face selling pressure. Ideal weather conditions including decent temperatures and ample rainfall have led traders to believe that the USDA will increase production estimates when it releases its next report in early August. Soybeans are under pressure because China started to sell part of its inventory on the domestic market. This is leading to speculation that China will refrain from purchasing U.S. soybeans for some time.
Equity futures have been rallying lately fueled by better than expected earnings. Problems may develop because of the lack of revenue growth however. Earnings have been going up because firms have been slashing expenses.
New money has been coming into the markets from the mutual funds but the current rally still does not look like anyone is chasing prices higher. This usually means higher markets to follow over the long-term.
Short-term, don’t be surprised by a 50% correction of the week’s range sometime today. This means a test of 945.00 in the September E-mini S&P 500 sometime this afternoon.
After a strong really yesterday, September Treasury Bonds and Treasury Notes are feeling downside pressure from profit-taking. Bernanke’s comments yesterday regarding the Fed having the tools to control inflation is potentially bullish news.
August Gold is the surprise mover of the day. This market is currently posting a $5.00 gain despite Bernanke’s testimony that inflation could be brought under control once the economy begins to turn and the Fed begins to implement its exit strategy.
September Crude Oil is recovering losses following an early morning set-back. Traders had taken a defensive position ahead of today’s inventory report. New buyers came in once the report showed that inventories were in line with estimates.
November Soybeans and December Corn continue to face selling pressure. Ideal weather conditions including decent temperatures and ample rainfall have led traders to believe that the USDA will increase production estimates when it releases its next report in early August. Soybeans are under pressure because China started to sell part of its inventory on the domestic market. This is leading to speculation that China will refrain from purchasing U.S. soybeans for some time.
