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Better Earnings from JP Morgan Ignites Stock Market Rally

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jul 16, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    The desire for more risk helped drive the September E-mini S&P 500 higher on Thursday. The trade through 928.75 turned the main trend to up and the strong close put this contract in a position to test the high for the year at 952.75.

    Fundamental traders believe that better than expected earnings by Goldman Sachs, Intel and JP Morgan have been the driving forces behind this current rally, but technical traders are not so sure that this is real buying or position adjusting ahead of tomorrow’s option expiration. Some cite the recent large increase in put buying as one of the reasons why this market has been rallying. Traders who bet heavily on a substantial correction this summer are being forced to cover their positions thereby triggering the strong rally.
    The feeling is that once the bears are squeezed out of their positions, the market will start another leg down.

    Traders sought protection in the September Treasury Bonds and Notes early in the trading session on Thursday on the report of the possible CIT Group bankruptcy. The fear that this event would spiral into another serious financial crisis triggered a mild flight to safety rally. Once the all-clear sign was given, selling pressure backed the Treasuries off their highs but not enough to force them lower for the day.

    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.

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