subject: Financials and Energies Reviews on The Week of 13-9-10 [print this page] When we are busy with our daily work in the new week, our experts also begin their weekly works to analyzed the futures markets to make sure that traders and have necessary information supporting their trading. Because of the limited time, this week we will check out the two typical market reviews to see how they work.
First of all, we will stop by the fiancial market since changes from here usually lead to others' changes. It was reported that banks won't have to make adjustments until 2019 on the amount of money they have to hold, which is used just in case there are large losses. The credit card industry, mortgages, and other loans will also see unique changes. Do you think that this is a good news or not? Shouldn't this be done in a year or less? Loans may be more stringent and this may cause more harm than good for the consumers. The reserves will be 8.5% of the balance sheet to meet the requirements. The news may cause different feelings to people with different purposes.
There is a boost in the market this morning because fo the wews of growth in China and bank reform. This may shift trades from treasuries back into stocks. View back the past 2 weeks, the market has risen with hefty gains and seems to have the same attitude today. The bank stocks may gain steam today because companies have time to adjust. The Street takes this banking news as positive since there is a less of a chance that banks can topple the economy, like they did over the past few years.
Go next to the S&P! The S&P was up 9.7 to 1113.80 and the DOW was up 78 points to 10471.00. It can go higher if it goes past 1117.00 as there is resistance at this level. This level is important, especially when economic data comes in. 1030.00 level could be the next target.
For the long term changes we need to care, but first of all, in term of finance, we also cannot neglect changes in the currency exchange rates. Market keep running and we keep chasing.
End of the road of financials, we will turn to go along with the energy road. Let's see the pipeline leak that the market saw on Thursday is still in effect here as Crude Oil gets bid for above $77 as the structure of the Oil curve rallies with the wti spreads gaining another 20 cents in each of the first two spreads over the weekend. During the time of Oct/Nov and Nov/Dec both trading -70. The Dec10/Dec11 contract is now at -470, as this has rallied +160 points in last week. Around the market, we can see traders are still buying this oil as this key pipeline is still shutdown. To compare, the S&P is above 1100 and the Euro/USD is above $1.28 as the oil market continues to rally. Look to see Oil try and test the $78.50 key resistance level this week with indicators pointing to a rally once again.
Natural Gas is now starting to look comfortable at the $3.70-$3.80 level. This may be a good news to traders in the floor. Our market analyst is looking at long opportunities in this market as he believes it will start to see a swift move to the upside. That Calls in Nov look very attractive right now leads him to think that this will be a great play as this market starts to make its way up.
You have just review how the financials and energies markets will be going on this week. You have noted down key points and may have your own decisions or plans in the next few days. Besides these two reviews, make sure you will not miss the other futures reviews and the daily futures price reports as usuale advised. Markets are changeable and interactive, don't get any mistake!
Financials and Energies Reviews on The Week of 13-9-10
By: Tony Lee
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