Internet and small-cap shares rallied while the Dow Jones Industrial Average hit a record today. The technology-heavy Nasdaq (CME:NDM14) index jumped 1.4 percent today. Voters in Ukraine’s Donetsk and Luhansk regions backed plans to secede, Russia’s state-run RIA Novosti said late yesterday. Chinese shares surged on speculation the government will take steps to bolster equities.
Commodities: Silver (COMEX:SIM14) is up exactly $.50 as of this writing to $19.62, outpacing gold (COMEX:GCM14), which is up $11 to $1,299. Silver has tested the waters near 2014 lows multiple times, and now could be poised for a run higher above $20. AUG14 feeder cattle continues to surge higher, today up $.1775 to $1.93150. Will it make a run for the $2 level? Perhaps it might get close. Copper really rocketed higher this morning as well, as it seems like the global markets are believing strongly about the strength of the global economy. Copper is up $.06 to $3.14. We would not at all be surprised to see copper run higher, possibly a lot higher.
Equities: The E-mini S&P 500 (CME:ESM!$) is up 15 points to 1888.50, getting closer towards the next key target of 1900. 1867 has been our key line in the sand recently, and it looks like the market has not been able to hold below there. 1902 is actually our next key market profile target for the emini SP500. We could see buy stops hit above 1900 potentially causing even more buying above 1900. The E-mini Dow futures hit a record today, and are up 111 ticks to 16638. Is 17000 next?
Bonds: The U.S. bonds are down 12 ticks to 135’12. 136’11 is the first key resistance level above today’s pivot level of 135’29. With the stock market rallying today, perhaps the market is in a risk-on mode and finding fixed income less attractive. The bonds have still not broken down through any major uptrend support lines, but are closer today to that. It will be very interesting to see how the stock market reacts if the bonds do start to drop a lot and higher rates ensue.
Currencies: The Swiss Franc is down 4 ticks to 112.70. We believe that the Franc does have potential to head to 110, if not lower. The EUR/CHF has rallied each of the past 2 sessions, as losses in the Franc have outpaced those of the JUN14 Euro. We would not be surprised to see the EURCHF rally further. The JUN14 Aussie is up 7 ticks to 93.39. The Aussie has been strong recently, and this could be due to the market thinking China’s economy will be supported by their government and monetary policy.