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Fear Drives Investors Out of Gold and Stocks

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

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    Fear over concerns about sovereign debt default and a worse than expected U.S. initial claims report helped to push commodity and stock markets lower on Thursday. Risk aversion drove investors toward safer, lower-yielding assets to the benefit of the U.S. Dollar.

    Investors were lightening up positions before the U.S. opening when the news hit that Weekly Initial Claims had surprisingly increased. This quickly encouraged long liquidation sending prices spiraling down throughout the session, sending the major indices sharply lower.

    The key level in the March E-mini S&P 500 at 1084.50 was violated with a vengeance, triggering a free fall to a new low for the week. Besides the fear that debt problems in Greece will spread to other Euro nations thereby disrupting the global economic recovery, traders reacted as if tomorrow’s U.S. jobs report will not show an increase as expected.

    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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