SubscribeDaily Futures Commentary July 27, 2009
Monday, July 27, 2009
Treasuries are feeling pressure overnight. Sellers are moving money into equities in an effort to capture a better return on their investments. The biggest factor for the decline, however, is traders taking protection ahead of the Treasuries $115 billion government debt auction this week. Today will feature the initial offering of $6 billion of 20-year TIPS.
Stock Index futures are indicating a higher opening this morning. Better-than-expected earnings have been the most influential factor driving equity prices higher. Today’s key earnings reports will be Honeywell and Verizon. Much of the rally has been led by the NASDAQ as technology stocks have been on fire despite poor reports from Microsoft and Amazon last week.
Although equity indices have reached their highest levels of the year, they have hit technically overbought levels. In addition, some traders feel that under invested portfolio managers have been chasing this market higher which makes it vulnerable to a correction if the continuous flow of new money begins to subside. This could make the markets vulnerable to a sizeable correction this week.
Overall, stronger stocks, higher crude oil and the weaker Dollar are all …
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