Bond & Equity Report for May 12

DATA RELEASES 05/12/10

  • 8:30 am US International Trade
  • 10:30 am EIA Inventory Report
  • 1:00 pm US 10 yr note auction

DATA RESULTS 05/11/10

  • US Wholesale Trade (0.4%)
  • US 3 yr note auction ($38B-B/C 3.27)

US DEBT REVIEW AND OUTLOOK
US Treasuries traded in a quiet session, rebounding from early downside pressure, as market participants appear to be adapting a strategy of buying into strength at these levels in a effort to manage the recent upticks in volatility and new uncertainty regarding global growth and execution of deficit management strategies.

Today’s $38 billion US 3 year note auction was well received with a bid to cover near 3.30. Gains in the US Dollar helped to support the rebound in Treasury prices, as the debt became more attractive to hold, particularly among foreign holders.

TECHNICALLY SPEAKING- A key support level sets up in the contract at 119-16, with 118-00 an initial downside target. Resistance levels for the contract set up at 121-17 and 121-29. Support and resistance levels

US EQUITIES REVIEW AND OUTLOOK
Stocks tested both sides of their recent trading ranges on Tuesday (as the only constant in the markets remains volatility). Early pressure left over from euro zone uncertainty faded as support in most of the major indices held. Value seekers in technologies fueled most of the midsession gains, which at one point reached the levels that preceded Thursday’s market debacle. A lack of commitment and expectations of continued volatility eroded follow through buying in stocks. Additional pressure from increased austerity from China as the country tries to reign in its growth and asset price increases.
Most of the indices closed in negative territory. Hunters for yield continued to be rewarded as the utilities sector managed to hold in positive territory for the most part even after the late session pullback.
Better than expected earnings from Disney failed to spark a post market rally as stocks continue to drift lower in the after session.

TECHNICALLY SPEAKING- Support for the June S&P contract continues at 1143.10 at 1134.50 while resistance sets up at 1173.20 and 1180.50.

US DEBT FUTURES OPEN HIGH LOW CLOSE CHANGE
US M0 (US 30 YRS) 120-26 121-24 120-09 120-25 -2/32nds
SP M0 (S&P 500) 1145.50 1168.50 1144.10 1152.20 -4.40

Prepared by Rich Roscelli & Paul Brittain. PLEASE VOICE YOUR MARKET OPINIONS, THOUGHTS, AND QUESTIONS. EMAIL TO RICH@BINVSTGRP.COM. Additional Information can be found at WWW.WHITEHALLVEGAS.COM.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Whitehall Investment Management, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Comments
comments powered by Disqus