ALARON LAS VEGAS US EQUITY FUTURES REPORT 04/28/2009
US EQUITIES RALLY TO FRESH TECHNICAL HIGHS AS FOMC KEEPS NEAR ZERO RATE POLICY ON HOLD.
US Equities rebounded on Wednesday as fears regarding the economic costs of the growing swine flu epidemic subsided and the Federal Reserve offered signals from its rate meeting that the worst of the recessionary slide may be behind the US economy. Equities closed slightly off of their best levels of 2009. Stocks managed to post strong gains before the Fed meeting boost of recovery optimism as a worse than expected performance in US GDP was shrugged off by equity buyers as they seemed to find “diamonds in the rough” within the GDP figures (consumer spending was up 2.2%).
The verdict seemed to come in on the 1st quarter earnings season as well. Measures released today showed that the ratio of companies that met or beat earnings expectations to those that fell short was nearly 10 to 1. Buyers also fled the secure Treasury markets and moved into equities and commodities as the US dollar fell and risk tolerance increased in the wake of subsiding concerns regarding the potential economic consequences of the evolving swine flu epidemic. A renewed sense of stability in the markets based on the comments by the Federal Reserve will likely cause the markets to pay special attention to the minutes of this latest meeting in order to establish further clarification of the extent by which recovery has been achieved so far and if the potential for inflation and a time frame for pulling back on the “golden goose” of easy monetary policy. Expect the markets to take a session to digest the ramifications of the Fed decision.
Technically, June Dow Futures continue their upward trend toward a resistance level of 8260. The market should likely experience a pullback ahead of that move back to support at 7975. 7862 sets up as a key level of support for this market, with 7690 as a key Fibonacci 61.8% retracement level. Look for the market to hold above that level in the wake of a strong pullback.
|
EQUITY RANGES |
OPEN |
HIGH |
CLOSE |
CHANGE |
|
|
DJM9 (JUNE DOW) |
8030 |
8205 |
8030 |
8125 |
+158 |
|
SPM9 (JUNE S&P) |
861.00 |
879.00 |
858.50 |
869.10 |
+17.30 |
|
NDM9 (JUNE NASDAQ) |
1370.00 |
1398.00 |
1369.00 |
1377.75 |
+17.25 |
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.
