Monday, January 11, 2010
U.S. equity markets are expected to open stronger as traders renew their demand for higher risk, higher yielding assets. Without any economic reports to concern investors,
expectations are trend day. There may be a break early in the session as U.S. traders have been reluctant to chase this market after higher openings. Earnings season begins after the close today.
Demand for higher yields is pressuring the March Treasury Bonds and March Treasury Notes. Traders are attempting to raise the yields in Treasuries to keep up with the high yields in
the stock market.
The weaker Dollar triggered a strong surge in February Gold. The first upside objective at $1151.30 was reached fairly easily overnight. The next upside target is $1169.30.
News of strong demand from China during December helped trigger an upside breakout in March Crude Oil. Imports were up a whopping 24% during the month. Upside momentum, increased
demand and a weaker Dollar could drive this market to 90.00 this week.
The U.S. Dollar is trading sharply lower as China reported …
