Wednesday, December 9, 2009
U.S. stock index futures are trading better overnight after the inability to follow-through to the downside following yesterday’s sell-off triggered a short-covering rally. The lack
of fresh news regarding debt issues in Dubai and Greece is also encouraging traders to take on more risk. There is nothing in the news that could change the opinions of traders about the developing
short-term weakness in the markets. This means that this current rally is likely only shortcovering rather than fresh buying. Look for the December E-mini S&P 500 to falter after a test of
1103.50.
March Treasury Bonds and Notes are trading lower. With debt concerns abating, traders in these two fixed income instruments are taking profits following a strong two-day rally. Today
the Treasury will auction 10-Year Notes as part of this week’s $74 billion debt issue. The results of the auction will be released at the mid-session of trading.
The U.S. Dollar is trading weaker overnight after rallying to a 5-week high. The current rally from the bottom at 74.27 is stopping short of the November 20th top at …
