FEED the BULL

Welcome to Feed the Bull - A home for investment information and interaction.

Tag: Drives

Sort
E.g., 2013-05-24
E.g., 2013-05-24
Enter a comma separated list of user names.

Stocks and precious metals are trading sharply higher this morning after the Fed announced it would inject fresh liquidity into the economy. The expected move by the Fed is weakening the Dollar and driving new money into U.S. stocks and global commodities.

A top-heavy, overbought stock market finally succumbed to selling pressure on Monday, plunging sharply lower. Since September 21 there have been three closing price reversal tops on the December E-mini S&P 500 chart, indicating that investors were selling rallies.

A late session short-covering rally triggered by day-trader liquidation late in the trading session helped equity markets finish higher on Thursday. The inability to break stocks throughout the day most likely encouraged frustrated bears to cover their positions ahead of tomorrow’s important U.S. Non-Farm Payrolls Report.

Tuesday afternoon the Fed announced it was keeping its balance sheet intact while changing the composition of said balance sheet by moving out of mortgages and into long-term Treasuries. This news triggered a strong surge in the Treasury complex, sending the September Treasury Bond to a new high for the year. The move by the Fed is designed to keep the pressure on long-term rates.

The U.S. Dollar was under pressure against most majors on Tuesday on speculation the Fed will consider renewing its quantitative easing program following next week’s FOMC meeting on August 10. Another round of weak economic data also contributed to the weakness in the Greenback which drove the Dollar to its lowest level since April against some of the currency pairs.

The U.S. Dollar is under pressure against most majors as investor concern that the U.S. economy’s recovery is losing steam drove traders into higher yielding assets. The overnight weakness in the Dollar was triggered by a better than expected economic report in Australia and a strong surge in Asian equities.

U.S. equity markets surged to the upside, taking back most of Wednesday’s loss as signs of a global economic recovery helped drive up demand for higher risk assets.

Better than expected housing data and earnings reports also contributed to today’s rally, but the majority of the buying was done overnight by aggressive Asian and European buyers.

Pages

ADVERTISE WITH US