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Equity Traders Optimistic about Earnings after Today’s Better GDP Number

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 29, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Today’s surge in the equity futures markets helped stocks recover close to 50% of their recent decline. This move represents optimism about corporate earnings. Traders should watch equity markets carefully after the huge run-up today. The lack of follow-through to the upside could be a sign of weakness, giving traders an excuse to get short again.

    December Treasury futures finished the trading day lower. Today’s bullish GDP report has brought the Fed closer to tightening its monetary policy. This is making traders think that interest rates may rise sooner than expected. Furthermore, when equities and commodities move higher, investors start asking for higher yields. This is the reason for the weakness in the December T-Bonds and December T-Notes today.

    The U.S. Dollar closed sharply lower against most major currencies with the exception of the December Japanese Yen. It was under tremendous pressure today as traders have increased their demand for higher yielding currencies. Today’s break erased all of the Dollar’s gains from yesterday.

    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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