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The Market Summary by Paul Brittain Date: 05/13/10 Estimated Update: 05/14/10 Company: Commodity Trade School Phone: 1-877-270-8403 eMail: info@commoditytradingschool.com Website: www.commoditytradingschool.com

The Market Summary by Rich Roscelli & Paul Brittain US DEBT REVIEW AND OUTLOOK US Treasuries fell on Wednesday as euro zone fiscal concerns ebbed. The security bid in Treasuries eased after reports that Spain and the UK, which just welcomed its new government, would be implementing deficit reduction plans that appear willing to focus on necessity rather than popularity. The notion of budget cuts and enacting of plans that will not at the very least make the debt crisis any worse (at least for the time being) boosted global risk acceptance and renewed some of the shaken confidence in the global economic recovery. US 30 year futures fell back to retest support of the range set from Thursday’s market panic/steroid seesaw of volatility. Wednesday’s Treasury auction of $24 billion worth of US 10 year notes was relatively well received. Bid to cover was strong at 2.96, though this came at the cost of a slightly higher yield. Treasuries increased their downward slide after the auction results were reported. TECHNICALLY SPEAKING- Significant support continues to set up at 119-16, with a break and close below this level setting up a possible retracement to 118-23. Resistance sets up at 121-10. US EQUITY REVIEW AND OUTLOOK Stocks rallied on Wednesday to close above the breakdown level from last Thursday’s market meltdown. Gains in the markets were led by a boost of confidence that the debt crisis in Europe shows signs of being contained. Spain and the United Kingdom announced that they would be implementing significant deficit reduction strategies. This action, coupled with data releases showing that Europe’s economy actually grew more than expected staged the springboard for a turnaround from downside pressure on equities during the early Asian session. The active implementation of presumably unpopular but necessary austerity plans for the European region offered hope for market participants that more than just printed money will be utilized to combat the euro zone debt crisis. How much of these plans will actually make it to a long term revamping of Europe’s competitiveness will remain in question for some time to come. Technology and growth stocks were among the best performing stocks in Wednesday’s session. Gains in Apple and IBM led a broad based rally. IBM shares moved higher after a report issued from the company calling for their EPS (earnings per share) to double by 2015. The overall positive sentiment overcame pressure on the financial sector after news broke that Morgan Stanley will be investigated regarding trading in mortgage backed derivatives. TECHNICALLY SPEAKING- Significant support for the June S&P contract remains in place 1143.00. A retracement of today move should find initial support at 1157.80 Today’s upward momentum needs to break & close above 1173.00 in order to expect sustainable upside. Upside resistance should the market breakout sets up at 1178.50 and 1186.25

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