Friday, December 11, 2009
Bullish reports out of China helped stock markets recover in Asia, leading to a strong rally in the December E-mini S&P 500. News that China’s November exports fell 1.2 percent
following a 13.8 percent decline in October helped spike U.S. equity markets to the upside. The strong rally overnight helped take out yesterday’s high as well as a retracement level in the S&P
contract at 1106.25. The key to a rally today will be whether investors are willing to chase this market higher.
Increased demand for risk will be the deciding factor as to whether the stock indices continue their strong surge. If retail sales come out better than expected, then look for higher
prices. Volume has been low, but investors may return to the markets today with conviction if they get clarity from the Retail Sales Report.
March Treasury Bonds and Treasury Notes are feeling downside pressure following yesterday’s poor 30-year Bond auction. Investors are asking for higher yields because of concerns over
the U.S. Treasury’s ability to pay its debt obligations.
February …
