surge

U.S. equity markets finished down on Friday and barely avoided a closing price reversal top which would have signaled the start of a possible retracement to the downside. The March E-mini S&P 500 and NASDAQ made new highs for the year while all three indices closed higher for the week. Friday saw the indices spike higher then break lower following a better than expected U.S. Retail Sales Report.

The U.S. Dollar declined into the close after trading in a tight range most of the day. A strong surge in the equity markets late in the session confirmed investor demand for risky assets, thereby pressuring the lower yielding Dollar.

Despite a move by China to tighten its monetary policy, U.S. equity markets mounted a strong recovery late in the trading session on Wednesday. This served as a sign that there is plenty of money on the sidelines and that investors continue to maintain a “buy the dips” mentality.

A renewed surge in demand for yielding assets is helping to drive crude oil and gold prices overnight. A firm undertone is also developing in the equity markets while the Dollar is under pressure.

U.S. equity markets finished higher after a mid-session break threatened to take the markets lower into the close. Stock indices reversed earlier weakness on the heels of a better than expected Chicago Purchasing Managers Index, but failed to maintain the upside momentum sending them lower at the mid-session.

December Treasury Bonds and Treasury Notes surged in the afternoon following better than expected results from today’s $42 billion 5-Year Treasury Note auction. The decline in U.S. 3rd Quarter GDP provided support earlier in the trading session along with weaker equity prices.

A fresh round of M&A activity sent equity prices surging to the upside early in the trading session. This up move was different than other recent rallies that were triggered by investor demand for higher risk assets. Technically, oversold conditions attracted traders seeking value. The rallied fizzled late in the trading session which gave it an appearance of a short-covering rally.

Commodity markets surged as traders sold the U.S. Dollar and used the proceeds to invest in higher risk assets. Commodity and equity futures were up across the board as selling pressure hit the Dollar from the opening today. Today’s rallies came as a surprise as many traders had anticipated a quiet trading session ahead of tomorrow’s FOMC meeting.

U.S. equity markets finished higher on Thursday following a last hour surge. Trading was light and directionless most of the day as traders evened up positions ahead of tomorrow’s U.S. Non-Farm Payrolls Report.

An early morning rally in U.S. equity markets sparked a strong surge in Forex markets on Wednesday but a late session break has many traders wondering if today’s rally was just short-covering.

Sorry it took so long to post this article. Surprised no one else has.

The Federal Reserve on Tuesday slashed a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the country into a severe recession.