Alan Bush

ADM Investor Services, Inc.

Alan has been a commodity analyst since 1976, focusing on the fundamental and technical aspects of precious metals, stock index, interest rate and foreign currency markets.  He has authored several articles for Futures magazine and Stocks Futures and Options magazine.  Alan served on the faculty of Oakton College as instructor of a course entitled “Principles of Technical Analysis.”  He has been interviewed on many national television programs, appearing on the Nightly Business Report, CNBC, CNN Moneyline, Reuters Television and Web FN.  In addition, he has been quoted in The Wall Street Journal, USA Today, The Bond Buyer and the Chicago Tribune and has been regularly interviewed on Chicago’s WMAQ radio business reports. Alan is currently the Senior Financial Economist with ADM Investor Services, Inc.


Tel: + 1 312 242 7911
Email: alan.bush@admis.com


May 26, 2020 Commentary by Alan Bush | follow us on Twitter @TradeADMIS   

 

STOCK INDEX FUTURES

 U.S. stock index futures are higher despite rising tensions between Washington and Beijing. 

S&P 500 futures are trading at the highest levels since March 9 after June S&P 500 futures advanced above a double top on the weekly chart and a triple top on the daily chart. 

The April Chicago Federal Reserve national activity index was negative 16.74, which compares to the previous month’s figure of a revised negative 4.97. 

The 9:00 central time May consumer confidence index is anticipated to be 88.3 and the 9:00 April new home sales report is estimated to show 495,000.

The 9:30 May Dallas Federal Reserve manufacturing general activity index is predicted to be negative 57. 

The technical picture continues to improve for stock index futures. 

CURRENCY FUTURES

The U.S. dollar is sharply lower but remains within a two-month trading range. 

The British pound is higher despite a report from the Confederation of British Industry, which showed retail sales volumes remained depressed in the year to May. However, the pace of decline slowed a little compared with April. The report showed volumes are expected to fall at a slightly slower rate next month.  

Higher crude oil prices supported the Canadian dollar and the Australian dollar.

INTEREST RATE MARKET FUTURES

In a risk on move, futures are lower across the board with most of the selling at the long end of the curve. 

Neel Kashkari of the Federal Reserve will speak at 12:00. 

The Treasury will auction two-year notes. 

The next Federal Open Market Committee meeting is scheduled for June 9-10. Currently there is a 98.6% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points. 

In the weeks ahead it is likely that the yield curve will continue to steepen. 

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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