Issue Date: September 03, 2009
S&P 500 FUTURES OUTLOOK
After a six-month, virtually uninterrupted advance of around the 50% magnitude, stock index futures have come under some pressure in the last few days. The bears have become more vocal in their thinking that range from the view that we are in for a severe correction to the more extreme idea that the March lows will be taken out. There is substantially more talk that there will be a double dip recession when the effects of the various government stimulus plans diminish or are withdrawn.
By Alan Bush
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Shanghai surprise.
To stimulate or not to stimulate that is the question. Can China bail out oil bulls once again? Oil prices rebound over night, after flat lining yesterday; after a big rally in the Shanghai stock exchange. Shanghai stocks surged 4.8%, driven by a rebound in financials and metals, giving hope once again to that old Chinese oil demand story. Overnight Liu Xinhua, Vice Chairman of the China Securities Regulatory commission, said they will seek to promote a stable and healthy marketplace. Those comments took away fears that the government would quickly remove stimulus and reign in overcapacity in the Chinese industrial sector.
By Phil Flynn
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Being Bearish Still Works
Spring Wheat continues to lead wheat lower. There are strong indications that the domestic spring wheat crop will come in above 550 million bushels. This, of course, remains to be seen, but do not rule it out. Buyers continue to hold the cards.
Expect to see a lot of progress made in the Spring Wheat harvest as temps have warmed and the crop is reaching maturation. As of Sunday the harvest stood at 38% complete. I would not be surprised to see the Spring Wheat harvest at 60% plus, completed, come Monday afternoon.
By Brian Henry
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