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Futures Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jun 16, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today's Futures Analysis summary

    Equity markets could not hold on to the gains from the overnight market and retreated hard throughout the day. The trend is down in the September E-mini S&P 500 but remains up in the September E-mini Dow and September E-mini NASDAQ.

    So far these markets are making 50% corrections of the recent rally. Since traders have been buying the dips throughout this rally don’t be surprised if this market turns around in the next few days for a rally into the end of the quarter.

    September Treasury Bonds and September Treasury Notes continued to move higher following last week’s technical reversal. Today the market was aided by the Fed’s purchase of bonds. Government reports which came out this morning showed inflation was steady and housing was improving. All of this may come to an end next week when the Treasury offers more debt.

    After a one-day reprieve, the U.S. Dollar came under pressure again today. Yesterday’s action was a reaction to positive comments from Russia regarding the status of the Dollar as the world’s reserve currency. Brazil, Russia, India and China met today to discuss the status of the Dollar as a reserve currency. Traders took precautions ahead of this event just in case something negative came out of the meeting.

    The weaker Dollar triggered a recovery rally in the precious metals. This was more of a technically related move. Fundamentally, without inflation to drive the market higher, traders seem content with standing on the sidelines or investing in stocks.

    Gold and Silver traders have been punished twice this year looking for the big surge to the upside. At some point inflation will come back, but the timing is critical. Price action indicates that gold investors are tentative buying strength so maybe this current break was a good thing for the market’s structure.

    Crude oil is still in an uptrend. Demand is beginning to show up but at a slow rate of acceleration. The trading action in this market indicates that price may be ahead of the demand, but there does not seem to be a big seller out there. Speculators are being careful not to trigger a huge surge to the upside like last year. Slow and steady is the style this year.

    Grain markets are still in an uptrend, but Monday’s action shows how critical the Dollar is to this market’s structure. If the Dollar strengthens then all of the forecasts for record low inventories will prove to be false because the projected demand will not be there.

    By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis.

    Disclaimer: Trading Futures on the 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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