SubscribeDaily Futures Commentary November 12, 2009
Thursday, November 12, 2009
Stock index futures closed higher but weakened late in the session after soaring in the morning. Yesterday’s quick surge early in the trading session put them into overbought territory, giving investors an excuse to take profits. Throughout this entire rally since March, traders have not been too fond of chasing markets higher, so a correction from current levels will not be unusual. Short-term, this market should continue to move higher as long as the Fed keeps interest rates low and the world continues to use the Dollar as a carry currency.
Treasury futures finished higher. Cash markets were closed because of the Veteran’s Day holiday. This helped give speculators a free look at the upside before hedging pressure returns Thursday. The weakening equity markets also helped contribute to the strength. A rise in equity prices today could force the Treasury Bonds and Notes to retreat.
The Dollar mounted a comeback after hitting a 15-month low against a trade-weighted basket of currencies early Wednesday. The December Euro once again failed in its attempt to break out over the recent top at …
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