A Labour Department report showed payrolls rose 175,000 last month
after a revised 149,000 increase in April, and the jobless rate climbed from a
four-year low.
Equities: The
JUN13 ermine SP 500 has rocketed back up from below 1600 to 1637.25, up 15
points from yesterday’s close. Our two key levels continue to be 1630 and 1653.
Now the market is above 1630, and could approach 1653. We believe the market
may have established a short term range of 1597 and 1685. Buyers did indeed
come out very strong when the market dipped to levels below 1600, showing us
that the sentiment regarding equities is still very bullish. We believe if this
market dips below 1620, it will be short-lived.
Bonds: The
bond market and Eurodollar futures are down today, with the JUN US10yr note
trading down 15.5 points, and the MAR16 Eurodollar futures trading down 6.5
points. We repeat our key target for the MAR16 Eurodollar futures is at 9842.
With a strong jobs number, we believe this target will be approached soon.
Currencies: The
currencies had a wild day yesterday, with the major non-US currencies rallying
hard against the US dollar. Today it is a different story, with the Aussie down
1.45% and the Euro down .31%. The Yen has been extraordinarily volatile
as of late, dropping almost 200 ticks from yesterday’s high. The Yen could fall
farther, possibly to a key support level right below 101.
Commodities: Crude
oil continues its consistent strength in today’s session, trading up $.91 to
$95.68. Key grain markets, such as corn, wheat, and soybeans, are all down
slightly. We focus on Gold. We believe gold will approach 2013 lows, and
possibly break below $1300. Our key targets are first $1340, and then $1290.
Gold is down $32 today to $1383.
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