1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Bearish Comments Sink Stocks into Close

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 21, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
    Likes Received:
    Today’s sample of Futures Analysis from FuturesHound.com

    Stocks tumbled late in the trading session to finish lower for the day after bank analyst Dick Bove downgraded Wells Fargo Bank to a “sell.” In addition, stores circulated that Wal-Mart executives warned that the Christmas season would be “tough.” The technical closing price reversal indicates a possible top which could start a 2 to 3 day break. Today’s trading action has also made this market susceptible to a weekly reversal down which would be a more significant indication of a major top.

    Treasury futures closed lower for the day. Strong demand for higher risk assets drove up competing yields in T-Bonds and T-Notes. Today’s late session break in U.S. equity markets had little effect on Treasuries, but if there is a follow-through break tomorrow then look for December Bonds and December Notes to rally as traders seek the safety of lower yielding assets.

    The U.S. Dollar was driven to a 14-month low as appetite for risky assets drove investors out of the U.S. Dollar and into the better yielding equity markets. The December Euro pushed through 1.5000 without much fanfare. Traders are still being cautious about this level and the threat of an intervention. The December British Pound was strong all day boosted by positive Bank of England minutes. Higher crude oil and equities helped the December Canadian Dollar, but with the threat of an intervention looming, don’t expect too much of a rally.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

Share This Page