1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Stocks Could Move Higher; Gold Indicates Uncertainty

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 4, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    The rebound in the U.S. equity markets indicates that stocks are poised to move higher. Although the Fed told us nothing that wasn’t already built into the market, the fact that more liquidity was made available shouldn’t hurt equity prices. Stocks could also benefit from an improving economy especially if Friday’s U.S. employment data comes out better than expected.

    Technically the indices appear to be in breakout mode, but we have watched this pattern for several weeks. The problem is investors don’t seem willing to chase it higher, so this makes it vulnerable to short-term corrections. Investors aren’t fools. They know we are at lofty price levels and the economy is teetering between recovery and recession so they still want to get value for their buck.

    The Gold market is forming an interesting pattern. The weaker close could be indicating that perhaps a bearish assessment for the Dollar is not in the cards. Like I say in my comment about the Dollar, the conditions are ripe for a bottom except a support base hasn’t been built. Gold is saying, not so fast. I believe the Fed’s low inflation assessment is keeping the bulls on the sidelines, but at the slightest hint of inflation, I think they will be ready to strike.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading foreign exchange 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.

Share This Page