Thursday, April 8, 2010
U.S. equity markets are called lower this morning after being drilled by a hard sell-off on Wednesday. Some say that comments from Kansas City Fed President Hoenig
triggered the break when he talked about a potential asset bubble forming and the need for higher interest rate. This gave worried traders an excuse to take profits after stocks reached lofty levels
earlier in the week. The inability of the Dow to test 11,000 sent a psychological message to the market that maybe equities are over-priced.
June Treasury Bonds and Treasury Notes are under a little pressure this morning following Wednesday’s short-covering rally. Yesterday’s upside move was triggered by
better than expected 10-Year auction demand. Yields fell as traders looked for safety due to escalating default problems in Greece. Treasury markets may weaken as traders do not expect to see similar
demand for 30-Year bonds during today’s auction.
Overbought conditions and a stronger Dollar have June Gold in a holding pattern this morning. This market is trading lower, but not falling apart. Speculators are …
