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Trader Aversion to Risk Pressures Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Dec 9, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    The stronger Dollar led stock market investors to pare positions as traders become more averse to risk. U.S. equity markets closed sharply lower following a sell-off which began in Asia and Europe overnight and spread to the U.S. throughout the day. Traders are trying to protect profits at the end of the year as chart patterns suggest there is more downside than upside potential at current levels. Traders are reacting to global debt concerns a lot faster than they did in 2008. This is leading to the excessive volatility.

    March Treasury Bonds finished in a strong position after regaining a key retracement price at 118’31. The chart indicates that the next upside target is 123’00 to 118’15.
    March Treasury Notes are in a similar position with 119’00 to 119’11 the next upside targets.

    The Treasury completed the first leg of its $74 billion auction today without a hitch. There were concerns before the trading session that investors would be reluctant to participate in this auction because the recent jump in yields was erased yesterday following a strong rally. Investors were probably more receptive to today’s auction because of the debt problems in Dubai and Greece.

    Read 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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