Archive | February, 2009

T-Bonds

Treasuries Tumble on More Supply

Anticipation and the eventual passing of the stimulus package rekindled supply concerns in the Treasury markets. Despite a shorten pit trading session, the electronic contract eventually fell in excess of 3 handles. While these types of price moves have become commonplace, they used to be rare. Nonetheless, traders and analysts seemed to take it in […]

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Cotton Futures

Cotton Suffers Serious Chart Damage This Week

March ICE cotton futures on Tuesday traded down the 300-point trading limit, and then on Wednesday showed solid follow-through selling pressure to produce significant near-term technical damage. The daily bar chart for March cotton futures shows that an uptrend line drawn from the November, December and January lows was penetrated on the downside and negated. […]

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Feb 10 Bond

Short Squeeze Triggered with Room to Run

The financial markets expressed their discomfort with the lack of details provided on the restructured TARP plan and the uncertainty over the economic stimulus package. Equities seemed to slide off of the cliff, while Treasuries finally experienced the short covering rally that we have been looking for. Trade was thin, and seemed to get thinner […]

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Is this Reflation?

You can put lipstick on a pig but it’s still a pig. The stimulus may be necessary, but it will eventually cause inflation. No one knows what the full package price will be, however we are now approaching $770 billion in round 2 of the “economic stimulus” package. This massive government spending should lift growth, […]

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The Imploding Economy

We never thought we would enjoy CSPAN, but in this past week’s CompliancEX, the February 6th edition, there was a film clip of Representative Gary Ackerman from Bayside N.Y. taking his shots at the SEC. If we could vote for this guy, we would. He minces no word and just attacked the officials of the […]

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BM&F on CME Globex

CHICAGO and SAO PAULO, Feb. 6 /PRNewswire-FirstCall/ — CME Group, the world’s largest and most diverse derivatives exchange, and BM&FBOVESPA, the largest exchange in Latin America, have announced that the order routing of CME Group products through BM&FBOVESPA’s GTS electronic trading platform is scheduled to begin Monday, February 9. (more…)

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Lean Hog Futures

April Hogs Gap to Fresh Contract Low

April lean hog futures on the Chicago Mercantile Exchange on Thursday gapped lower on the daily bar chart and hit a fresh contract low of 59.85 cents a pound. Prices remain in a strong 6.5-month-old downtrend on the daily bar chart and there are no early technical clues to suggest a market low is close […]

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February 4 S&P

Bank Realities Return to Wall Street

As the financial sector rescue plan remains in limbo, investors are growing increasingly uneasy with equities. Bank of America shares weighed heavily on the Dow pushing the index well below the coveted 8,000 mark and causing it to under perform relative to the other indices. There wasn’t a lot of economic data for the market […]

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Feb 1 T-Bond

Treasuries on the Long End of the Curve

Indecisive equities and even less certainty in Washington aided a short covering bid in Treasuries. The 30-year bond and the 10-year note enjoyed a bulk of the buying while the short end of the yield curve dragged a bit. Many analysts attributed the buying to a flight to quality bid, but in my opinion, it […]

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Reading the Tea Leaves

The new Administration may have its hands full with a total lack of bipartisanship, the new good bank bad bank policy, and a total lack of confidence, evident by the record money on the sidelines and violent selling, showing little signs of stabilization. We expect investors to stay defensive, but when money starts being committed […]

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