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Stocks Mount Huge Turnaround ahead of Earnings

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jul 11, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. equity markets finished the week with a strong performance indicating that investors may be fed up with the bad news and tired of the low yields being offered by an investment in Treasuries.

    Sure this rally may have been short-covering, but something had to have stopped the decline from getting worse earlier in the week. Cheap prices and those who believe that the economy is not as bad as some may think despite the recent bumps in the road were probably waiting for this recent correction with both hands.

    Next week however, bullish traders will be asked to put their money were there mouth is because its earnings season. Low ball guesses by analysts are expected to continue to make it appear that companies are beating the street, but the real key will be in the outlook for future earnings. My guess is the outlook numbers will be optimistic because no one wants to be the first to price in the possibility of a double-dip recession. Furthermore, I believe that companies will publicly continue to preach better earnings, but will these earnings come because of job cuts and cost cutting or will they come from increased sales. This will be the key as to whether this rally can sustain its self.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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