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Treasury Bonds Soar as Stock Market Jitters Drive Investors to Safety

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, May 20, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    Flight-to-safety buying drove June Treasury Bonds sharply higher. Thursday morning’s trading action took out the recent high at 124’16. Upside momentum seemed to be indicating that another surge was likely. The move in the T-Bonds looks more reactionary than speculative with investors taking their cues from the falling equity markets.

    June Crude Oil traded sharply lower on its expiration day. The price action seemed to be indicating that no one wants to own crude oil. Liquidation of risky assets was one reason for the weakness. Traders have been treating crude oil as a hedge against the Dollar. Now that the U.S. Dollar is clearly on a path to move higher, there doesn’t seem to be any reason to hold on to long crude oil positions.

    Fundamentally, a slow down in the global economy is likely to lead to a drop in demand for energy products. This will no doubt help drive up oil inventories. The break through the February bottom at 72.43 by the September contract indicates that more downside pressure can be expected.

    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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