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Is This the Start of the Next Bull Market or Massive Short-Covering Rally?

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

  1. futuretrends24

    futuretrends24 New Member

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

    The September S&P 500 opened higher and never looked back today fueled by increased demand for higher yielding assets. This week’s rally has been triggered by a perfect storm of better than expected earnings reports and friendly economic data releases. The size of the move over a short period of time has many traders questioning whether we have reached an overbought status.

    The fundamental traders will argue “no” as they believe that the best is yet to come because of the plethora of earnings results still unreported. Technical traders are most likely leaning to the overbought side as chart patterns indicate the stock indices may be too far ahead of themselves.

    The next two days will be interesting because major banks report and options expire. In the case of the banks, there is always room for a surprise number which could put doubt in the head of bullish traders. Option traders may also see surprises as it seems the rally this week may have been designed to stick it to the bears. Sometimes the markets swing on both sides of the plate before option expiration.

    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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