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Demand for Risk, Greek Resolution Fuel Stock Market Rally

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Mar 5, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. stock indices rallied sharply higher following the release of better than expected U.S. Non-Farm Payrolls Report. Investors drove up stock prices on the belief that the jobs data indicates an improving economy. News that the Greek parliament approved its current budget cuts and tax increases helped drive up demand for higher risk assets as it indicated that a financial crisis in the Euro Zone may have been averted. Technically, the daily swing chart indicates a possible move in the March E-mini S&P 500 to 1156.00 by March 12th.

    June Treasury Bonds finished sharply lower after the better than expected jobs report signaled that the economy was improving, bringing the Fed closer to hiking interest rates. Additional pressure came as traders pared positions because of increased demand for higher yielding assets. Based on the short-term range of 114’15 to 118’02, traders should look for weakness to drive this market down to the next major retracement level at 116’04 to 115’24.

    April Gold had a modest increase despite the weaker Dollar. The muted reaction to the weaker Dollar indicates that it may have already been priced into the market. This market is struggling with a major 50% retracement level at $1136.75. A failure to regain this price could help trigger a retracement to $1117.20. Holding above it should be enough to fuel a rally to $1158.10. Traders who bought gold as a hedge against the demise in the Euro may be liquidating their positions. This could be another reason why gains were limited.

    Read full article at 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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