SUMMARY OF UPCOMING DATA 02/09/10
1:00 PM US 3 YEAR NOTE AUCTION ($40 B)
DATA RESULTS 02/08/10
NO MAJOR DATA RELEASES
US DEBT REVIEW AND OUTLOOK
US TREASURIES staged a strategic retreat on Monday as buyers from last week’s global “Fright Fest” cashed out some profits ahead of this week’s US Treasury auctions of 3, 10, and 30 year debt. With a total amount of $81 billion coming to market this week, perhaps the Treasury is looking to adapt an austerity program? Doubtful, but the continued focus on a new global credit crisis is likely to give some support to the US public debt sector. This support may be limited though as the reprieve for US debt should be limited, as the negative sentiment caused by the lingering enormous supply, high risk to reward ratio, and growing condemnation for the lack of value received from the massive government spending. Pimco is recommending purchases of government debt without such high levels of deficits. The bond trading giant is recommending purchasing debt of countries such as Germany and Australia vs. the United States and the UK
Technically, March 30 year futures pullback today should be limited initially to support at 118-19. A key resistance level forms in the contract at 119-24.
US EQUITY REVIEW AND OUTLOOK
S&P futures made a valiant effort to regain ground but a lack of follow through and ongoing concerns regarding Euro zone sovereign credit concerns. Financial shares were the worst performing sector. A lack of data and growing uncertainty regarding the sustainability of economic recovery pressured equities. The markets appear to be factoring in the growing sense of dread that all the trillions of dollars, euros, yen etc. spent to starve off global economic chaos may have created unforeseen problems and a lack of return for the risk exposure to global credit ratings and fiscal responsibility. (Would it not have made better fiscal sense to pay off half the adjustable rate mortgages in the US and reset the principle based on that?). This is what has bankrupted m
A rebound in energies and commodity prices early in the session helped support that sector. Consumer retail and tech stocks also supported the markets from falling further.
Technically, March S&P futures upside should be limited to initial level of 1062.00, with 1069.00 setting up as a significant resistance level. 1047.50 sets up as a downside target with 1042.00 and 1038.70 levels in play on the downside.
|
US DEBT FUTURES |
OPEN |
HIGH |
LOW |
CLOSE |
CHANGE |
|
US H0 (US 30 YRS) |
118-30 |
119-07 |
118-25 |
119-07 | |
|
SP H0 (S&P 500) |
1062.00 |
1068.30 |
1053.20 |
1055.90 |
-3.90 |
Prepared by Rich Roscelli & Paul Brittain.
PLEASE VOICE YOUR MARKET OPINIONS, THOUGHTS, AND QUESTIONS. EMAIL TO RICH@BINVSTGRP.COM
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