US EQUITY FUTURES REPORT 04/01/2009

EQUITIES BEGIN 2ND QUARTER WITH GAINS. BETTER DATA ON HOUSING AND MANUFACTURING TRUMPS ADP REPORT, LOOMING US AUTOMAKER BANKRUPTCY.

US Equities began the 2nd quarter of 2009 with a solid performance that overcame early adversity driven by ominous data releases. The major equity indices remained under pressure throughout the overnight session after sentiment dropped due to comments from the Obama administration that bankruptcy might be the viable outcome for General Motors and/or Chrysler. A slew of bad data from the Euro zone kept equities under pressure throughout the overnight session. A brief pre market rally was cut short by the release of the ADP employment report, which tracks job creation/destruction in the private sector. The reading came in at a higher than expected -742,000 vs. previous reading of -697,000.

It would appear though that market sentiment had become used to worse than expected bad news with regards to the employment picture. Perception also appeared to be building a longer term view into the employment picture as a gleam of optimism was found in Tuesday’s US Consumer Confidence reading on future outlook for jobs.

The leveling off of job loss shock allowed for a recovery in equities fueled by better than expected reading from the ISM manufacturing survey and US pending home sales. Both of these indicators showed improvement over the previous month and allowed for a renewed sense of optimism on the economy. Material and Financial stocks led the indices higher. Bank stocks were particularly buoyant today on expectation of an announcement from the Financial Accounting Standards Board regarding mark to market accounting.

One sector that did not fare well was not surprisingly the auto sector. General Motors fell, but recovered from its session lows after proposed plans by the Obama Administration for a “controlled bankruptcy” Overall, it would seem that this bad news for GM Shareholders-the ones who have not been playing this as a speculative penny stock-could be perceived as a positive note for the market, as the notion that “a bad ending is better than no ending at all”

Technically, June Dow Futures staged a nice rebound off an initial support level of 7430. The market continues to experience volatility within its range. Holding within this range should allow for upward rally to 7960 resistance level. Support should be found at the 7550 level.

EQUITY RANGES

OPEN

HIGH

LOW

CLOSE

CHANGE

DJM9 (JUNE DOW)

7440

7730

7430

7718

+280

SPM9 (JUNE S&P)

781.50

810.30

779.50

809.20

+14.40

NDM9 (JUNE NASDAQ)

1215.00

1255.00

1209.00

1251.00

+13.50

dow_report.JPG

Prepared by Rich Roscelli & Paul Brittain.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.