US EQUITY FUTURES REPORT 03/31/2009

EQUITIES MAINTAIN VOLATILE TONE, REBOUNDING FROM MONDAY DROP ON AGGRESSIVE “REINVENTION “CHALLENGE FROM AUTOMAKERS, FINANCIALS REBOUND IN WAKE OF POOR DATA.

US Equities demonstrated their seemingly never ending volatile tone as the markets regained their poise as the end of the month and the quarter posted the strongest monthly gains in years. Despite the release of several pieces of worse than expected economic data, the markets seemed to regain composure and an appetite for risk, as demonstrated by the lackluster performance of safe haven currencies and traditional hedging products (gold & silver).

The markets achieved initial positive sentiment on the back of financials which rallied in the wake of the TED spread breaking below a key psychological level. Traders perceived this as a sign of increasing confidence in the banking sector as well as possible increased in financial institutions willingness to offer credit. In addition, the markets received additional support from announcements by Ford and General Motors of new loan payment support plans for buyers that lose their jobs. While the stocks themselves came under pressure, the overall effect on market psychology was quite supportive.

Technology and material stocks gained on analysts upgrades for Microsoft and Alcoa. Copper prices also posted their largest monthly gains since 2006. The gains were fueled by a weaker US Dollar, potential shortages in copper stores, and perceived increases in demand from China.

Equities will likely remain volatile as they have during the US payrolls week. Wednesday offers the first glimpse of the employment picture for March with the release of the ADP employment report. It comes as little surprise then that the equity markets staged a strong pullback at the close of the session which followed through into the aftermarket session.

Technically, June Dow Futures filled in the gap left from yesterday’s pullback, retracing to the 7620 level. The market appears to be looking for further downward movement back to the 7480 level. A stronger level of support appears to be setting up at 7395. If this level can hold, look for move back to 7620. Otherwise, the market should continue down further to 7290.

EQUITY RANGES

OPEN

HIGH

LOW

CLOSE

CHANGE

DJM9 (JUNE DOW)

7562

7670

7501

7562

+62

SPM9 (JUNE S&P)

791.50

807.00

786.70

794.80

+10.50

NDM9 (JUNE NASDAQ)

1233.00

1258.00

1226.00

1237.50

+14.75

dow_report.JPG

Prepared by Rich Roscelli & Paul Brittain.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.