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Stocks Finish Weaker but Investors Continue to Support the Dips

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 21, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets closed lower as investors dumped higher risk assets, but buyers once again stepped in on the intra-day dip. Wednesday’s weakness started on the Shanghai Exchange overnight after China asked banks to stop lending for the rest of the month. This sent a signal to traders that the easy money environment would be coming to a close. Investors reacted as if the news from China would curtail the global economic recovery.

    Good news from IBM couldn’t carry the market and by the opening IBM was leading the Dow Jones Index lower. The news that Republican Brown defeated the Democratic machine in Massachusetts may have put additional pressure on the markets. According to some analysts, healthcare stocks could feel pressure, but insurance stocks may gain. The stronger Dollar is likely to send investors into lower yielding assets.

    Investors continued to look at weakness in the markets as buying opportunities. The strong comeback from earlier lows suggests the indices may take another run at the highs. Until major support is broken on the longer-term charts, expect this pattern to continue.

    Read full article at 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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