Soros and Rate Cut Spark Aussie Selling

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As twenty-three companies in the Dow Jones are due to report results today, the equity markets are hovering near their recent highs, with the SP 500 futures (emini JUN13) actually making another new high this morning. The Australian Central Bank cut rates, following the trend of global central bank stimulus.

Equities: The JUN13 emini SP 500 is up 4 points to 1617.25. We continue to hold our next key upside target for this market at 1640. The JUN13 emini Nasdaq is up very slighly at +.03%. The Nasdaq has been up more than the Dow and SP recently, so it seems this market is taking a breather today, while the other markets play catch up.

Bonds: In front of key auctions this week, the US 10yr and 30yr bond are trading lower today near their lows of the day. The JUN13 30yr bond futures market is down 8 ticks to 146 08. We could see this market headed to the low 140′s soon. Each month, the unemployment % will become more and more important and potentially market moving as the Fed potentially comes to an official decision on their next moves.

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Commodities: Gold is down $22 today. We noted yesterday that gold was having a lot of trouble staying above the key $1475 level. Today, sellers came in and are bringing this market lower below this key technical pivot point. Our next key gold support price level is $1425. Natural gas continues its sharp fall today, trading down 1.82%. Natural gas’s key support for today is $3.92, and this market might find some bounce around there.

Currencies: We focus on the Aussie dollar. First, the Aussie Central Bank cut interest rates, which has sparked Aussie Dollar selling. Second, rumors of legendary trader George Soros taking a big short position in this currency has also probably stoked some added selling as well. We believe this currency is indeed headed lower, and would not be at all surprised to see it head below 1.00.