June 18, 2010

Global Equity Markets Trade Flat Overnight; Investors Searching for Catalyst

Global equity markets traded flat overnight and in a very tight range as investors searched for a catalyst which would drive the market higher. Without any major economic
reports today, traders are most likely going to watch the Euro for direction.

The recent flow of money back into the Euro can best be described as a minor shift in risk sentiment and its rally looks corrective in nature. The same thing can be said
of the current rally in the equity markets as the two major indices and the Dow average head back toward 50% to 61.8% of the entire April to June break.

Now that these three markets have weaseled their way back to their major retracement zones, investors are approaching the rally with caution as they wait for a shift in
the fundamental outlook for the markets to be the new catalyst which drives them even higher. Some analysts are beginning to question whether the market is being driven …

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June 17, 2010

Euro Rallies after Spanish Bond Auction Eases Investor Concerns

The U.S. Dollar traded down against all major currencies, driven lower by increased demand for higher risk assets. Risk appetite was strong this morning following the
news that last night’s Spanish Bond auction overnight was oversubscribed, easing tensions about renewed sovereign debt issues in the Euro Zone.

This morning’s good news erased worries that the Dollar was preparing to strengthen after several consecutive weak days. The U.S. Dollar edged slightly …

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June 17, 2010

Stocks Called Higher after Spain Debt Sales Spurs Risk Demand

U.S. equity markets are called higher this morning after a flat trading day on Wednesday. Global markets received a boost a short while ago after it was reported that the
auction of Spanish Bonds was oversubscribed.

This news helped ease concerns amongst traders who were taking a cautious approach to the long side of the equity markets after it was reported on Wednesday that the
International Monetary Fund, the European Union and the U.S. Treasury had opened a $307 billion credit line for Spain.

Risk appetite rose on the news about the Spanish Bond auction sending stocks higher after a lackluster night session. On Wednesday, U.S. equities finished flat after a
mid-session attempt to continue the recent rally failed because of risk fears in the Euro Zone and a weaker than expected U.S. Housing Starts number. Now that tensions have eased about Spain, traders
will focus on the slate of U.S. economic reports today.

The first …

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