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Equity Markets Soften as Traders Reevaluate Long Positions

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 20, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets followed the lead of lower Asian and European markets today and sold off sharply from the get-go. U.S. investors are concerned that the weak condition of the economy cannot support stock prices at such lofty levels. Some investors say that the current break is setting up another buying opportunity. The bears will be watching Friday’s close for indications of a reversal top. This could lead to the start of a 2 to 3 week correction. Some bulls fear that end-of-the-year liquidation may be taking place early.

    Treasury futures rallied today as money left higher risk assets for the safety of the lower-yielding T-Bonds and T-Notes. This money movement helped drive yields lower. Both bonds and notes have been finding support lately on the thought that a weaker economy will force the Fed to leave interest rates low.

    The U.S. Dollar posted a strong gain versus major currencies on Thursday as investors pulled money out of higher risk assets and sought refuge in the safer Greenback. Recent weak U.S. economic data is making traders think twice about buying riskier stocks and commodities at the current lofty levels.

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

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