SubscribeDaily Futures Commentary September 9, 2009
Wednesday, September 9, 2009
Equity markets are expected to open flat this morning following a strong rally yesterday. Although gains were somewhat limited in the U.S. yesterday, strong gains were seen in Asia and Europe. Most of the rally in stocks was attributed to greater demand for higher risk assets and currencies. This could be because U.S. investors are taking advantage of opportunities overseas and diversifying their portfolios.
Traders seemed nervous yesterday about buying strength in the U.S. equity markets. This could be because of the tendency of the market to have large declines in September. Traders are definitely looking for a catalyst to take it to new levels. Investors are waiting for a new sector to emerge as the leader. Financial stocks received an upgrade yesterday but equities barely moved on the news. This is because stocks in this sector may be overpriced given the current condition of the economy. Investors are looking for bargains and may not be willing to chase this market higher at this time.
Another concern for investors is the lack of consumer spending. Broad market investors have for the most part of this rally ignored the …
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