Soros and rate cut spark Aussie selling

As 23 companies in the Dow Jones are due to report results today, the equity markets are hovering near their recent highs, with the S&P 500 futures (E-mini JUN13) actually making another new high this morning. The Australian Central Bank cut rates, following the trend of global central bank stimulus.

Equities: The JUN13 E-mini S&P 500 is up 4 points to 1617.25. We continue to hold our next key upside target for this market at 1640. The JUN13 E-mini Nasdaq is up very slightly at +.03%. The Nasdaq has been up more than the Dow and S&P recently, so it seems this market is taking a breather today, while the other markets play catch up.

Bonds: In front of key auctions this week, the U.S. 10-year and 30-year bond are trading lower today near their lows of the day. The JUN13 30-year bond futures market is down 8 ticks to 146 08. We could see this market headed to the low 140s soon. Each month, the unemployment number will become more and more important and potentially market moving as the Fed potentially comes to an official decision on their next moves.

Commodities: Gold is down $22 today. We noted yesterday that gold was having a lot of trouble staying above the key $1,475 level. Today, sellers came in and are bringing this market lower below this key technical pivot point. Our next key gold support price level is $1,425. Natural gas continues its sharp fall today, trading down 1.82%. Natural gas’s key support for today is $3.92, and this market might find some bounce around there.

Currencies: We focus on the Aussie dollar. First, the Aussie Central Bank cut interest rates, which has sparked Aussie dollar selling. Second, rumors of legendary trader George Soros taking a big short position in this currency also probably stoked some added selling as well. We believe this currency is indeed headed lower, and would not be at all surprised to see it head below 1.00.

Click to enlarge.

About the Author
Anthony Lazzara

Anthony Lazzara, CEO of Newport Beach, Calif., commodities investment firm Lido Isle Advisors, spent 10 years as a trader and floor broker at the Chicago Board of Trade and Chicago Mercantile Exchange. Anthony has significant experience in the energy, fixed income, and equity futures markets. After being a long-time independent futures trader, Anthony saw a tremendous opportunity to educate investors on how to invest in professional traders. Anthony is now focused on his duty as CEO of Lido Isle Advisors.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome