Hold Your Horses Before You Enter
Friday, March 13, 2009
The U.S stock markets continued higher yesterday, with the financial sector leading the way. Bank of America continued to gain, closing the session with an 18.66% profit, while Citigroup jumped by 8.44%. closing the session at $1.67 per share. Over the last couple of trading days the major indices have u-turned, erasing all of March’s losses.
Recent gains have occurred following recent good news of banks showing profits during the first two months of the year and following comments from officials stating that if the banking sector manages to stabilize, the economy should experience a recovery towards the beginning of 2010.
The Dow added to its recent gains 623 points closing the session with gains of over 3.46%, while the S&P closed higher by 4.07%.
A bottom or not?
While many are now asking, whether the markets are reaching a bottom, one must take into consideration that recent gains could be cut short due to the ongoing problems within the different economies. The major economies are still dealing with economic contraction and decreasing inflation. Yesterday the Swiss bank slashed its central rate to a mere 0.25% following local economic contraction. While a bear market rally is most probably the best case scenario at the moment, further confirmation is still required before we can determine a bottom.
Classic intraday trading trends
Economic data continued to have an effect on the Forex market yesterday, allowing the USD/JPY one of its best intraday session. After dropping throughout the first half of the session, this pair managed to form support throughout the session, rallying higher. As stated on yesterday’s briefing a follow through did not occur, meaning the Japanese Yen did not hold on to its gains towards the start of the U.S session, consequentially leading to a false break of recent range lines.
Surprisingly enough the Dollar index failed yet again to present any major drop despite U.S equities’ 3% rally. Recent price movement still shows that investors are reluctant to make any hasty decisions still classing the Dollar as a safe-haven.
In addition Gold continued higher throughout the session, closing with gains of 2.11%. Crude Oil bounced back throughout the session, touching a high of $48.18 per barrel, due to the overall bullish momentum in the market.
What going on today?
Most of the major movement will come from the U.S and Canada today. The unemployment rate in Canada is expected to jump to a high of 7.4%, while the U.S’s is scheduled to release its closely watched trade balance numbers. Investors will be observing the numbers closely; especially as imports have dropped rapidly over the last couple of months in the U.S due to the economic slowdown. Furthermore Michigan Sentiment numbers should put some spice into the session as analysts are expecting a drop compared to last month’s number.
USD/JPY - yesterday's intraday swings
Market Pivot Points
Friday, March 13, 2009
The U.S stock markets continued higher yesterday, with the financial sector leading the way. Bank of America continued to gain, closing the session with an 18.66% profit, while Citigroup jumped by 8.44%. closing the session at $1.67 per share. Over the last couple of trading days the major indices have u-turned, erasing all of March’s losses.
Recent gains have occurred following recent good news of banks showing profits during the first two months of the year and following comments from officials stating that if the banking sector manages to stabilize, the economy should experience a recovery towards the beginning of 2010.
The Dow added to its recent gains 623 points closing the session with gains of over 3.46%, while the S&P closed higher by 4.07%.
A bottom or not?
While many are now asking, whether the markets are reaching a bottom, one must take into consideration that recent gains could be cut short due to the ongoing problems within the different economies. The major economies are still dealing with economic contraction and decreasing inflation. Yesterday the Swiss bank slashed its central rate to a mere 0.25% following local economic contraction. While a bear market rally is most probably the best case scenario at the moment, further confirmation is still required before we can determine a bottom.
Classic intraday trading trends
Economic data continued to have an effect on the Forex market yesterday, allowing the USD/JPY one of its best intraday session. After dropping throughout the first half of the session, this pair managed to form support throughout the session, rallying higher. As stated on yesterday’s briefing a follow through did not occur, meaning the Japanese Yen did not hold on to its gains towards the start of the U.S session, consequentially leading to a false break of recent range lines.
Surprisingly enough the Dollar index failed yet again to present any major drop despite U.S equities’ 3% rally. Recent price movement still shows that investors are reluctant to make any hasty decisions still classing the Dollar as a safe-haven.
In addition Gold continued higher throughout the session, closing with gains of 2.11%. Crude Oil bounced back throughout the session, touching a high of $48.18 per barrel, due to the overall bullish momentum in the market.
What going on today?
Most of the major movement will come from the U.S and Canada today. The unemployment rate in Canada is expected to jump to a high of 7.4%, while the U.S’s is scheduled to release its closely watched trade balance numbers. Investors will be observing the numbers closely; especially as imports have dropped rapidly over the last couple of months in the U.S due to the economic slowdown. Furthermore Michigan Sentiment numbers should put some spice into the session as analysts are expecting a drop compared to last month’s number.
USD/JPY - yesterday's intraday swings
Market Pivot Points
Last edited by a moderator: