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Improved ISM Services Results Boosts Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 5, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com


    U.S. equity markets rose sharply following the release of a better than expected ISM Service Sector Report. Trader demand for more risky assets was up even before the U.S. markets opened, and the friendly ISM Report helped drive them higher. Oversold short-term conditions also helped to fuel the rally.

    This rally may be short-lived as traders await the start of the Third Quarter Earnings season on Wednesday. Investors will be looking for increased earnings, driven by higher revenues. Bearish traders believe the market will fall if earnings show that stock prices are too lofty. The VIX indicator is warning traders to expect an increase in volatility.

    U.S. Treasury markets posted a modest gain, but were well off their highs. Last Friday’s closing price reversal top in the December Treasury Bond was not confirmed, but based on the weak close, could be confirmed tomorrow. Short-term the T-Bonds and T-Notes appear overbought. In addition, if demand for higher yielding assets continues to increase, then look for even more downside pressure on the Treasuries.

    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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