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U.S. Stocks Finish Lower Under Thin Conditions Ahead of GDP Report

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 30, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. stock markets closed lower under thin trading conditions as most major market participants took the day off ahead of tomorrow’s 2Q GDP report. This left the market wide open for day-traders and scalpers who created a little volatility early before eventually settling down after the mid-session.

    Economists estimate that the GDP report will show a gain of 1.6%. A higher number should be outright bullish for stocks. Things could get tricky if the report comes out lower than expected. In this case, look for whip-saw like action. Traders are likely to sell the market initially on a lower number then buy it back cheaper. A lower number will mean the Fed will definitely ease more in the form of additional quantitative easing. Stock traders seem to love it when the Fed gives them more money with which to play.

    After falling from its overnight high, equity markets traded in a choppy pattern. Investors continued to buy the breaks Wednesday morning like they have been over the past five days, creating a rangebound trading environment. Without any major U.S. economic reports to guide them, investors were forced to focus on the falling Dollar and rising Gold prices.

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

    Disclaimer: Trading foreign exchange on the 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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