Thursday, February 4, 2010
Commodity and stock markets are trading lower overnight as risk aversion is driving investors toward safer, lower-yielding assets. U.S. economic reports may have to take a backseat
today as traders express their concerns with growing European sovereign debt issues by selling off higher risk assets. Trading may be volatile today as thin conditions ahead of tomorrow’s U.S.
Non-Farm Payrolls Report continue to be the highlight.
The key level to watch in the March E-mini S&P 500 is 1084.50. Holding this level could attract buyers which will limit losses. A failure to build support at this level is likely
to pressure this market further with 1069.50 the next downside target.
March Treasury Bonds are trading higher. This market could see a sharp rise to the upside if European debt worries continue to pressure equity markets. Traders may be encouraged to
buy Treasury Bonds and Notes for safety. A medium-term view indicates that 118’24 is resistance. The developing downtrend pegs 116’06 as the next downside target.
The stronger Dollar is pressuring April Gold. Selling pressure has …
