U.S. Treasury Bond futures settled at their lowest level on Thursday since November closing down nearly a full point from open to close at 140.61. Bonds continue to be under pressure as risk-on trades dominate the market with equities continuing to show strength. Though the Dow Jones Industrials have now crossed the 13,000 mark no less than 66 in the past four sessions (H/T to Zerohedge) it could not hold that level and closed at 12980. The 13,000 mark on the Dow is proving to be strong resistance, while the S& 500 continues merrily along inching higher towards 1400. The Dow is definitely in a consolidation range right now and will have make a decision soon.
The bond market will be the key to this resolution. A move below 140 on the 30 year bond futures will likley send the Dow higher, signalling that despite what he said yesterday Ben Bernanke and the Federal Reserve are printing money faster than Weimar Germany.
Gold and silver regained much of their losses after yesterday’s month-end raid, with silver, especially reasserting itself near the $35.70 resistance zone. Gold closed at $1721. RBOB gasoline for April delivery spiked to $3.31 and Natural Gas slumped on weak demand perception below $2.50 per million BTUs. The corrections in Cattle and Hogs are over, at $130.89 and $90.19. Both look incredibly strong and poised to move higher.
Bernanke can’t take credit for the stock market without accepting higher commodity prices. If he believes that 4% CPI inflation is the path to economic recovery he’s going to be in fora rude awakening when the economy rolls over at $7 per gallon gasoline.
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