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Stocks Produce Modest Gains in Lackluster Trade

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 26, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets produced modest gains on Monday. The trading action suggests that short-covering and bottom picking were most likely the catalysts behind today’s rally. Volatility slowed compared to last week’s trading action. Investors may be standing aside as they await Wednesday’s Fed FOMC announcement.

    Treasury futures traded lower as demand for lower yielding assets fell. Demand for safer assets helped to lower yields and boost the March Treasury Bonds and Treasury Notes last week. This bodes well for the next auction because it looks as if the Treasury will be able to offer lower yields. Supply concerns are likely to continue to limit gains, however.

    February Gold mounted a strong comeback following last week’s sharply lower trade. Investors dumped commodities because of the stronger U.S. Dollar. News that China was beginning to shift toward a tighter monetary policy means less demand for precious and industrial metals. Furthermore, a slow down in demand will mean lower inflation which lessens the need for gold as a hedge. Most of Monday’s strength could be attributed to short-covering and profit-taking.

    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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