Key equity indexes such as the Nasdaq, Dow Jones and &SP 500 are starting off the week on a fairly quiet note. Equity markets in the U.S. are slightly in the red, with bearish fundamental Apple news being one of the bearish news points this morning. Investors continue to be alert to various corporate earnings results that continue to hit the newswires. The Nasdaq is leading the way down today, trading at 2722, or down .8%.
The U.S. bond futures market is hovering around unchanged levels this morning. Even though a potential end to QE3 has been publicly discussed, we might see the bond market really react with higher rates and lower prices, especially if the next couple of monthly jobs reports come out significantly better than expectations. We think that in 2013, the stocks and bonds could return to their typical inverse relationship.
Silver and platinum are having nice bullish moves today. Both markets are trading up around 1.75%. Gold, however, has not experienced the same bullish activity today. Gold is trading up $8, or +.5%. As we have noted, we believe gold will be in a short-term range between $1,630 and $1,690.
The big story in the markets today is in the grains sector. After the USDA issued their key report on Friday, corn saw the biggest initial burst of buying activity, which has certainly continued into today’s trading. Corn futures are up $.15 to $7.24. Soybean futures are up a huge $.47 to $14.21. Soybeans bounced off their key support level at $13.60. We focus more for you on corn today. Corn also bounced off of a very key support level at $6.80. The bullish report has caused corn to rally more than $.40 since Friday morning. Technically, we believe corn futures will experience some congestion at $7.40, and would not be surprised to see corn travel to the top of the recent range at $7.70.
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