Wednesday’s Futures Setups

The Strong Dec. S&P 500 futures
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SPZ2 |
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PowerRating) set the tone early on, with some of the big banking stocks such as
Citigroup
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C |
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PowerRating) and Bank of America
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PowerRating) delivering positive
earnings. The SPZ2 closed at 882 up over 4.80% a 40.39 move.

Click here for some key levels from Carolyn Boroden’s Futures
Perspectives.

The Dec. Nasdaq 100 futures
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NDZ2 |
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News |
PowerRating)
were fueled in the morning by positive comments from a Goldman Sachs analyst on
Microsoft
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PowerRating). MSFT will report next week and they are expected to
either meet or beat their earnings estimates. NDZ2 closed at 950 up 42.50 or
4.68%.

As good a day as it was
for the equity market, it was a hard day for the Treasury market
which experienced the heaviest losses in months. It really looks like bond
market participants clearly believe in this stock rally: The Dec.10-year note
(
TYZ2 |
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PowerRating) plunged nearly two points today to close at 113 995, down 1 165. The
yield rose 20 to 4.01%, almost a full half percentage point higher than the
recent low of 3.54%. The Dec. 30-yr bond fell down 2’05 to 110’05. There have
been rumors surfacing about a “large account” (Warren Buffett’s name has been
tossed around amid the rumors). This has some investors shifting out of bonds
and into stocks since last Friday and has been a catalyst for the weakness in
the Treasury market and the strength in the equity market.

Possible
long candidates: