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U.S. Equity Traders Turn Defensive

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 24, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Stock indices finished sharply lower in a sell-off that was fueled by a report showing a decline in U.S. Home Resales. Yesterday’s dramatic reversal to the downside late in the trading session set the tone for today, but the market accelerated to the downside on the thought that the U.S. recovery may be slow and labored. Downside momentum was strong which could be an indication that the break will continue tomorrow.

    Treasury futures finished up today as traders moved money out of the risky stock market and into the safety of the T-Bonds and T-Notes. Traders reversed this market to the upside late yesterday following the Fed FOMC meeting. Look for the rally to pick up steam if equity markets break substantially.

    The U.S. Dollar posted a strong gain today and is now in a position to close higher for the week. A weekly closing price reversal could indicate the start of a 3 to 4 week rally. The December British Pound suffered the biggest loss on Thursday following negative comments from Bank of England Governor King. King said that he supported a weaker currency. The December Euro weakened as commodity and equity markets lost favor with investors. The December Canadian Dollar was also down substantially as U.S. equity markets collapsed along with crude oil. The Canadian economy will take a big hit if crude oil prices drop substantially. The December Japanese Yen finished the day slightly lower as losses were limited by repatriation of Yen by Japanese corporations.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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