SubscribeDaily Futures Commentary November 18, 2009
Wednesday, November 18, 2009
Housing Starts Fall Unexpectedly; Treasuries Could Benefit
This morning it was reported that the Core CPI rose 0.3% while Housing Starts fell 10.6%. Treasury futures are trading a little lower after the news. A higher CPI number will be
an
indication of inflation which helps push interest rates higher. This will put pressure on the December Treasury Bonds and Treasury Notes. A sharp sell-off in the equity markets could trigger a
flight
to safety rally in the Treasuries. Both of these scenarios are possible today which means a two-side trade is likely. Watch for volatility. The surprise drop in the housing starts could support
the
Fed’s notion for interest rates to remain low for a prolonged period of time.
U.S. Equity futures are trading sideways to lower after an attempt to reach a new high for the week overnight failed. December E-mini S&P 500 futures made a high this week at
1112.00. A breakout above this level could trigger a sharp rally to …
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