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

Stocks Gain on Increased Demand for Risky Assets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 9, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. equity markets erased earlier losses triggered by the weaker than expected U.S. Non-Farm Payrolls Report to close higher for the day. Traders reacted to the fact that the U.S. employment situation is still indicating a weak recovery. The markets turned around, however, as investors saw the break as a buying opportunity. As the Dollar fell, traders bought up stocks as demand for higher risk assets picked up. Traders now feel that a hike in interest rates by the Fed is a long way off and the best investment opportunities are in the equity markets.

    Treasury futures rallied following the release of the bearish U.S. jobs data report but the markets could not hold on to their gains. Traders bought March Treasury Bonds and Notes on the thought the Fed will continue to refrain from hiking rates for several more months. Late in the session, March Treasury Bonds weakened as traders realized the government may have to spend more money to create jobs. If this market is going to accelerate to the upside, then traders will have to get aggressive following a breakout over 116’05.

    February Gold traded higher because of the weaker Dollar. Traders should watch for an acceleration to the upside following a trade through $1141.00. This move is likely to trigger a continuation of the rally with $1151.30 the first major upside objective.

    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.

Share This Page