SubscribeDaily Futures Commentary June 10, 2009
Wednesday, June 10, 2009
Interest rates are the driving force in the markets at this time. Yields are creeping up and once again traders are becoming a little nervous about the U.S. ability to pay off its debt obligations.
As interest rates rise, Treasury instruments are weakening. Since rates are expected to rise as long as the Treasury continues to supply the market with notes and bonds, financial futures should remain under pressure. Money that is leaving the falling Treasury markets is jumping into equities.
Although this may not be the best reason to buy stocks, investors almost have no choice but to reallocate their funds to the stock market. Equity indices should continue to rise this week and possibly post a new high for the year. So far the current leg up has been very steady, but the current chart formation suggests the possibility of a sharp spike to the upside.
There are some major investors out there who are not fully committed to the stock market rally. Some have been waiting for “the correction†to enter. Unfortunately with the end of the quarter coming very quickly, some of these …
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