Tuesday, October 05, 2010

Emini Futures / Yuan Me And Tokyo Fed


Yuan Me And Tokyo Fed 
(sung to the tune of "We're off to see the Wizard...)

"There's something for everyone in the Capitol City. Oh I just know it! A brain for Timmy, a heart for Nancy and even some courage for Mr. O!  Right Toto?"


CFRN Daily Rap w/ Leslie Burton
The US Dollar has succumbed to the Euro Zone calling for a stronger Chinese Yuan. France’s Christine Lagarde had commented today that China should be included in global discussions regarding the currencies. The Bank of Japan said they would infuse more cash into the economy and keep their interest rates low. The Bank of Japan had also reported that it would put together a pool of funds to purchase assets. Australia Central Bank also vowed to keep their interest rates low. The Central Asian Bank along with a US Bank had been reported to be buying Euros. You can almost see the wave of asset allocations among the currencies and safe haven vehicles.  ISM Non-manufacturing Index was 53.2 in September.  Anything over 50 reflects expansion. The weaker Dollar gave a boost to the Stock Indices and Gold this morning. The magic words that the Fed will inject more money into the US Economy as part of their stimulus incentive seems to give a lift to the E-Mini S&P 500.  The high of $1158.75 was reached about 2:25 CST.  The Fed bought $1.7 trillion of debt instruments such as the US T-Bonds while the support alone seems to give investors the confidence to go back in to trade the Stock Indices and other aggressive markets.  

ES Emini

Some traders attribute the move up on the E-Mini S&P 500  to short covering. This market could technically advance to $1163.00 and/or $1188.00 before any significant retracements.

The market is poised to pull back into the after hours. We really will be focused on the Initial Jobless Claims on Thursday at 7:30 AM CST. Friday will be the crucial point in this bull market.  Unemployment comes out at 7:30 AM CST. We look to these barometers for a true reading on our recovery and the next steps for the Fed on November 3rd and 4th. 

Join us for Live Market Commentary M-F from 11am-1pm Eastern. To view our live charts during the broadcast Click Here .   

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