Today’s sample of Futures Analysis from FuturesHound.com
The Fed FOMC committee decided to leave interest rates at historically low levels and issued a statement that said nothing to deter demand for higher risk assets. It is now up to aggressive traders to take advantage of the thirty day free pass issued to them by the Fed’s inaction. At this time the Fed is no closer to raising interest rates than it was last month. This is potentially bullish news. The currency traders recognized it, but equity traders seemed hesitant.
Stock index futures finished higher, but in the low end of the range. The inability to make a new high for the day after the Fed’s rather dovish comment leaves one suspect as to whether demand for equities has run out of gas. Today’s upside action could not even drive the December E-mini S&P 500 to its 50% retracement price at 1062.50 before it sold off. Maybe traders are tired or maybe money managers closed up shop for the rest of the year on October 30th. Nonetheless, the statement from the Fed has the potential to drive this market higher. If there isn’t a follow-through to the upside tomorrow, then look out below.
Treasury futures finished lower as interest rates rose slightly. Chicago financial market traders are betting that the Fed will raise rates in June 2010. The weakness in the Treasuries was felt hardest in the December Treasury Bond. Bonds and Notes are indicating that the end of the Fed asset purchasing program is going to gradually ease rates higher.
Read 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.
|
Fed Statement Does Nothing to Stop Demand for High
Posted - November 05 2009 : 00:58:58
