In This Issue

For Wall Street, March is best month since 2002

Corn Pops; Bulls Now Need to Show Follow-Through Strength

Economic Reports and Expiration Notices

April 1st, 2009 - Issue #474

March Market Roundup from Yahoo! News.

For Wall Street, March is best month since 2002

by Edward Krudy - Reuters - Tue Mar 31, 5:20 pm ET

NEW YORK (Reuters) – Stocks climbed on Tuesday, driving the S&P 500 to its best month since October 2002, as investors snapped up top-performing bank and technology shares as the first quarter came to an end.

Upbeat news from Europe set the tone for financials, helping them recover much of Monday's losses and continue a recent robust rally after British bank Barclays (BARC.L) declined to take part in a government asset-protection plan.

Technology shares added to a strong three-week rally after brokerage Davenport recommended investors buy Microsoft Corp (MSFT.O), pointing to increased demand for personal computers in China and the United States, and potential restocking of inventories in Europe.

Even as the broad S&P 500 rose 8.5 percent in March for its best one-month percentage gain since October 2002, uncertainty about the struggling economy left the benchmark U.S. stock index down 11.7 percent for the first quarter.

"I don't think this strong rally we've had in March guarantees we will continue this for the rest of the year," said Brian Daley, sales trader at Conifer Securities in New York.

"I think there's still a lot of question marks and a lot to be seen in terms of how the fundamentals play out in the second half, and that's what I think investors are really going to focus on."

In fact, data showed business activity in the U.S. Midwest shrank in March at the most severe rate since 1980 while house prices sank a record 19 percent in January from a year earlier.

The Dow Jones industrial average (.DJI) gained 86.90 points, or 1.16 percent, to 7,608.92. The Standard & Poor's 500 Index (.SPX) added 10.34 points, or 1.31 percent, to 797.87. The Nasdaq Composite Index (.IXIC) climbed 26.79 points, or 1.78 percent, to 1,528.59.

S&P'S SIX-QUARTER SLIDE

As the final trading day of March ended, the S&P 500 marked its sixth consecutive quarterly decline, matching the longest streak of quarterly drops that stretched from the end of the fourth quarter of 1968 to the end of the second quarter of 1970. This time, the S&P's cumulative slide for the past six quarters was 47.7 percent, compared with a 30.6 percent drop 39 years ago.

After Monday's sharp sell-off in banking shares on concerns over the sectors health, JPMorgan Chase (JPM.N) rose 7 percent to $26.58 and Bank of America shares (BAC.N) jumped 13.1 percent to $6.82, while the S&P financial index (.GSPF) gained 6.7 percent.

Microsoft shares added 5.1 percent to $18.37 and contributed the most to the Nasdaq's advance.

Alcoa (AA.N) jumped 9.7 percent to $7.34 after Deutsche Bank upgraded the aluminum company's stock to "hold" from "sell" and raised its price target. Analysts gave little credence to a rumor that Australian rival BHP Billiton Ltd (BHP.AX) may be seeking to acquire Alcoa.

And on Nasdaq, shares of Autodesk (ADSK.O) shot up 10.4 percent to $16.81 after UBS upgraded the design software and services company's stock.

On the economic front, the picture remained bleak but investors appeared to pay less attention to the data, with damage limited to the homebuilding sector.

In addition to January's record drop in home prices, March U.S. consumer confidence came in barely above the record monthly low.

The Institute for Supply Management-Chicago index of business activity fell in March at a rate that was more severe than expected.

The Dow Jones homebuilders index(.DJUSHB) fell 3.2 percent.

Trading was active on the New York Stock Exchange, with about 1.64 billion shares changing hands, above last year's estimated daily average of 1.49 billion, while on Nasdaq, about 2.20 billion shares traded, below last year's daily average of 2.28 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 3 to 1, while on the Nasdaq, two stocks rose for every one that fell.

(Additional reporting by Leah Schnurr; Editing by Jan Paschal)

Disclaimer:

Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!

Corn Pops; Bulls Now Need to Show Follow-Through Strength

by Jim Wyckoff

Click the image to enlarge.

May corn futures at the Chicago Board of Trade on Tuesday hit a fresh two-month high of $4.06 a bushel. Tuesday's price action also re-established a four-week-old uptrend line on the daily bar chart. The corn market bulls have gained fresh upside near-term technical momentum with Tuesday's strong upside price action. Now, it will be important for the bulls to show follow-through buying strength this week. The next upside price objective for the corn market bulls is to push and close May futures prices above solid technical resistance at $4.18. Above that lies strong chart resistance at the January high of $4.39 1/2, basis May futures. On the downside, strong technical support for May corn futures is located at $3.85. A close below that price level would deflate the bulls. Above that level does lie chart support at $3.95 and at $3.90. Importantly, the corn market and the other grains will continue to be heavily influenced by the key "outside markets" that include the U.S. stock market, crude oil and the value of the U.S. dollar against the other major currencies. On Wednesday morning, those markets are postured in a bearish fashion for corn, as the dollar is firmer, while crude oil prices and the U.S. stock indexes are lower.

Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff

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Economic Reports and Expiration Notices

Source: Moore Research Center, Inc.

* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.

** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.

*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!