Daily Futures Commentary April 3, 2009

Friday, April 3, 2009

The G-20 announcement is already yesterday’s news and market participants will turn their interests toward today’s U.S. Non-Farm Payrolls Report. Comparing the two events, the G-20’s decisions to provide aid to struggling emerging markets and establish greater financial regulation represents the future while the U.S. unemployment report represents the past. In other words, one could call the G-20 activity a leading indicator and the Non-Farm Payrolls Report a lagging indicator.

Yesterday’s activity in the markets represented trader reaction to what could happen if the G-20 plan actually comes to fruition while the unemployment report represents an issue that is actually taking place in the market now. The key to trading today’s markets will be whether investors believe you can have both bullish potential in the G-20 plan and bearish reality in more unemployment.

If you ask the question will the G-20 plan to pump money into emerging markets help improve the U.S. unemployment situation the answer is no. This is why the G-20 plan from a United States perspective is a failure. President Obama went to the summit trying to convince world financial leaders that increasing debt …
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