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Fresh M&A Activity Triggers Surge in Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 28, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    A fresh round of M&A activity sent equity prices surging to the upside early in the trading session. This up move was different than other recent rallies that were triggered by investor demand for higher risk assets. Technically, oversold conditions attracted traders seeking value. The rallied fizzled late in the trading session which gave it an appearance of a short-covering rally. This could have been caused by shorts getting trapped on the wrong side looking for a continuation of last week’s sell-off. Investors are also still concerned that earnings expectations are not likely to match up with current lofty price levels.

    December Treasury Bonds closed higher as demand for bonds continued to increase. Despite the low yields, traders are expressing their concerns about the possibility of a stock market correction by seeking the safety of the bond market. The chart indicates that 123-00 is a reasonable upside target.

    The U.S. Dollar traded mixed on Monday. The Dollar gained ground versus the European markets like the Swiss Franc, Euro and British Pound, but lost a little versus the Asian-Pacific markets. The December Japanese Yen started strong but ended up posting a closing price reversal top. This could indicate the start of a short-term correction.

    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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