Wednesday, October 2, 2013

A Jolt of Demand- Price/Volume Heat Map for 10/1 Trading Day

Looking at this morning's futures trading, it looks like yesterday's trading, where demand finally materialized after many days where supply won the battle, will be, at least at the open, partially reversed. This follows a strong rally in equity prices, where the S&P 500 gained nearly 80 basis points in value on across the board price gains on sector basis.


Looking at the demand dynamics of yesterday's trading, all sectors accept for utilities and material stocks saw a burst of buying interest. With long-term rates trading essentially flat since the 25th, the lack of buying interest in utilities is interesting, as utility shares and long-term bond tend to move in opposite directions. I am not sure not if the lack of demand in this sector is an indication that traders are taking a weight and see approach to interest rates, a belief that rates are going higher that results in traders not wanting to position themselves in utilities, or is just noise. Note worthy nonetheless.





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