The break in the equity markets that traders have been waiting for all week finally occurred early this morning. As been the custom, investors quickly gobbled up shares on the break to drive the markets back to old areas of support. Today’s break didn’t really look like selling pressure. The markets seemed to break when bids disappeared. Today’s action may be indicating that investors are being picky at high price levels, but there is nothing that indicates that a major top is taking place.
Treasury markets are trading lower at the midsession. Traders may finally be reacting to this week’s increase in debt supply after a few days of strength. If investors were concerned about a stock market breakdown then Bonds and Notes would be rising. Today’s move looks more like profit-taking after a strong week.
The U.S. Dollar is trading mixed to weaker today. The weaker stock market is helping to boost the Japanese Yen. Fundamental problems continue to hurt the September British Pound. A flat U.S. GDP number this morning is leading traders to favor the September Euro once again to lead the global recovery.
The weaker Dollar is leading to slightly better prices for December Gold. The best way to describe today is lackluster. Gold traders seem to have nothing to trade off of except the direction of the Dollar.
December Crude oil is trying to mount a comeback this afternoon. Almost all week this market has felt pressure as traders shied away from buying near the $75.00 area. Prices may have to drop into the low $60’s before demand picks up. Talk of a recovery in the economy hasn’t help improve demand as much as speculators have priced into the market.
Treasury markets are trading lower at the midsession. Traders may finally be reacting to this week’s increase in debt supply after a few days of strength. If investors were concerned about a stock market breakdown then Bonds and Notes would be rising. Today’s move looks more like profit-taking after a strong week.
The U.S. Dollar is trading mixed to weaker today. The weaker stock market is helping to boost the Japanese Yen. Fundamental problems continue to hurt the September British Pound. A flat U.S. GDP number this morning is leading traders to favor the September Euro once again to lead the global recovery.
The weaker Dollar is leading to slightly better prices for December Gold. The best way to describe today is lackluster. Gold traders seem to have nothing to trade off of except the direction of the Dollar.
December Crude oil is trying to mount a comeback this afternoon. Almost all week this market has felt pressure as traders shied away from buying near the $75.00 area. Prices may have to drop into the low $60’s before demand picks up. Talk of a recovery in the economy hasn’t help improve demand as much as speculators have priced into the market.
