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Risk Fears, Profit-taking Pressure Equities

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Mar 19, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. stock indices took a loss on Friday, driven lower by risk fears and profit-taking. Fear that the Greek financial problems may escalate over the week-end encouraged traders to lighten up positions in equities after a strong run-up. The stronger Dollar also pressured equities as traders took a little money off the top to reinvest into lower risk assets. Friday’s quadruple witching also contributed to the weakness and volatility.

    Without any major economic reports on Monday, look for traders to turn to risk sentiment and the Dollar for direction.

    June Treasury Bonds regained the old double-tops at 118’02 but had very little follow-through to the upside. Friday’s gains were most likely related to asset allocation plays between stocks and bonds. Earlier this morning, Thursday’s reversal top was confirmed but traders quickly bought the dip when stocks broke. This market is set up to move higher on Monday because there are no economic reports to stop the T-Bonds. Increased risk could break equities to the benefit of the T-Bonds.

    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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