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Weaker Dollar Fails to Ignite Strong Equity Rally

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 30, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    The weaker U.S. Dollar failed to ignite the strong rally in the equity markets that many investors had been counting on. Last week the equity markets sold off on news that Dubai World was having problems meeting its debt obligations. On Friday, however, the stock markets posted a strong recovery as bargain-hunters snapped up cheap stocks on the news that the Dubai situation was overblown. Today, many investors expected a follow-through rally after Dubai World creditors said that the situation was under control. In addition, many stock traders believe that that the issue was a more local than global problem.

    Throughout the day, the stock indices failed to attract strong buying despite the weaker Dollar and mild demand for higher yielding assets. This could be a sign that investors are content with this year’s gains and fearful of adding additional risk to this year’s portfolio.

    Watch for increased volatility the next few day as technical factors indicate this market is ripe for some big moves. If a secondary lower top has been formed in the indices, then look for a sharp break to the downside.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely marketGann 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.
     
  2. Rider

    Rider New Member

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    Oil has rallied to a high for the year of $82 a barrel reached in October, from below $33 in December 2008, even though fundamentals of supply, demand and inventories are bearish in the view of many analysts.

    Reports this week are expected to show U.S. crude oil and gasoline inventories rose, adding to ample supplies. Crude stocks are expected to rise by 500,000 barrels and stocks of gasoline by 1.4 million barrels.

    The American Petroleum Institute will release its supply report on Tuesday at 4:30 p.m. ET. The U.S. Energy Information Administration issues its snapshot on Wednesday.
     
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