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Better Housing Number Boosts Stock Indices

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Dec 22, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. stock indices closed near the high of the day following the release of a better than expected U.S. existing home sales report. Traders increased long positions on expectations of a strong recovery in the U.S. economy. Last night’s rally took out the recent top in the March E-mini S&P 500, reaching 1114.75. The next upside targets are 1119.00 to 1122.00. Optimism over a U.S. economic recovery is encouraging investors to seek higher yielding stocks at the expense of Treasuries and Gold.

    March Treasury Bonds and Treasury Notes felt downside pressure all day. The friendly U.S. existing home sales report was another sign that the U.S. economy is recovering. This is encouraging investors to dump Treasuries in favor of equities in a traditional asset allocation play.

    Japanese investors are moving money into the Treasuries. Investors are asking for higher yields because of concerns over the abundance of U.S. debt and the Treasury’s ability to pay it back.

    Read full article at 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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