Daily Futures Commentary FINANCIALS 022009

Friday, February 20, 2009

OVERVIEW

Thoughts that the global recession is worsening has the markets in a fear mode once again. This means that equity markets are down along with commodity markets. The safe-haven markets such as gold, U.S. Dollar and Treasury markets are trading higher.

Financials: Bonds and Notes are up on flight-to-safety buying.
Equities: Banking issues continue to pressure the stock market.
Currencies: U.S. Dollar is the safest alternative at this time.
Energies: Global recession continues to curtail demand.
Metals: Fear is driving traders to Silver and Gold.
Grains: Deepening global recession hinders demand for feed, food and fuel.
Softs: Strong U.S. Dollar likely to maintain its pressure on Cocoa and Coffee.

FINANCIALS

March Treasury Bonds and March Treasury Notes are higher this morning. Extreme weakness in the equity markets overnight is driving traders to seek the safety and security of the Treasury markets.

These two markets have the potential to rally further if the stock market remains under pressure. Oversold conditions in the equity markets may prompt a short-covering rally which may lead to …
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