SubscribeDaily Futures Commentary June 3, 2009
Wednesday, June 3, 2009
Trading in the financial markets has been light so far this week ahead of Friday’s U.S. Non-Farm Payroll Report. Traders seem to be willing to attempt to establish an early trend only to have it fizzle by mid-morning on low volume throughout the day.
A good example of this is yesterday’s June E-mini S&P 500. This market is in an uptrend and demonstrated its strong bias to the upside with a gap-opening on Monday. Yesterday it started flat, but attracted buyers following a better than expected housing number. The ensuing rally could barely eke out a small rise above the previous day’s high. So while the trend continued by posting a new higher-high, the lack of follow-through to the upside following the good news was an indication that this market may be getting top-heavy.
This type of trading is expected to continue over the next two days as investors shy away from committing too much to a position. Day-traders on the other should welcome the volatility and the sudden shift in directions.
The same type of trading action is occurring in the Treasury futures market. Despite the …
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