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Volatility Picks Up in Equity Markets Following FOMC Announcement

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 13, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Equity markets surged immediately following the FOMC meeting but were unable to close near the high as traders took profits into the close. The tone of the market was firm all day as better than expected earning reports from Macy’s and Toll Brothers boosted demand for equities.

    Thin trading conditions contributed somewhat to the rally as it seemed no big seller was willing to step in front of the market. Tomorrow will be an important day as trading volume is expected to return closer to normal. It will be interesting to see if investors pick up where the market left off today and attempt to drive it through last week’s highs, or if they break the market in an effort to buy at lower prices.

    September Treasury futures backed off of their highs following the release of the FOMC data despite a well received auction. The Fed announced today that it would leave interest rates at near zero while gradually easing its way out of its quantitative easing program. Today’s auction showed steady demand as investors were encouraged to buy because of the attractive yields.

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

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