Thursday, January 14, 2010
Equity markets are flat as traders await this morning’s U.S. Retail Sales Report. Based on previously released new motor vehicles sales and December Chain-Store Sales, traders should
expect a healthy report. Look for retail sales to grow by 0.4% and retail sales less autos to increase by 0.2%. Today’s jobless claims report should show an increase of 3K with a range of 400K to
450K.
A bullish report is likely to trigger an upside breakout over this week’s highs. The March E-mini S&P 500 is currently in a position to take out its recent minor top at 1148.00. A
weaker report may trigger a set-back to 1129.00, but investors are likely to step in to buy this break.
March Treasury Bonds sold off sharply yesterday as traders dumped safe assets in favor of higher risk assets. A bullish Retail Sales Report is likely to pressure T-Bonds today as
traders will once again begin to factor in the possibility of a Fed rate hike. A weak report should be supportive if investors sell off higher risk assets. 116’05 …
