Thursday, February 18, 2010
U.S. stock indices are expected to open flat this morning. The stronger Dollar on Wednesday kept a lid on prices despite better than expected U.S. economic news and a positive FOMC
report from the Fed. The trading action shows that risk is still a concern for investors, and that traders are reluctant to buy strength. This may mean that another correction may be necessary to
attract fresh buying. The psychological 1000 barrier in the March E-mini is providing resistance this morning.
The March Treasury Bonds turned the main trend to down following yesterday’s friendly U.S. economic reports. Without any new supply hitting the market this week, bond traders will be
focused on the U.S. economy. Better than expected economic reports should continue to push yields up and bonds and March Treasury Notes lower.
News that the International Monetary Fund is getting ready to resume gold sales is pressuring the precious metal. It’s hard to tell at this time if there is enough liquidity available
for the gold market to absorb the sales. More supply is leading to …
