Tuesday, January 5, 2010
Commodity and stock prices are expected to continue to see support from investors demanding higher yields although short-term overbought conditions may limit upside action. Traders
are citing the stronger global economy and low interest rates in the U.S as two reasons for the renewed interest in higher yielding assets.
U.S. stock indices continued its surge to the upside overnight on the heels of higher equity markets in Asia and Europe.
Despite the stronger demand for higher yielding assets, U.S. Treasury Bonds and T-Notes are trading higher overnight. A support base is being built in the March Treasury Bonds which
indicates that a value zone may have been reached. A trade through the last main top at 115’29 will turn the main trend to up and indicate further upside potential. A minor bottom has been reached in
the March Treasury Notes which could launch a retracement to 116’24.
The weaker Dollar is helping to support February Gold. The main trend turned up on the daily chart, putting this market on path for a potential retracement to …