Investing.com - Financial Markets Worldwide
🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

FX Futures Edge: Markets Worry Upon Fed Decision

ByRichard Rhodes
Published 09/25/2013, 01:49 AM
Updated 07/09/2023, 06:31 AM
FTNMX301010
-


STOCKS: The world economy is muddling through. The US payroll tax increase and sequestration are headwinds to the US economy, China is being pressured by Japan, and both the US and Chinese housing market are weakening. The eurozone remains mired in inaction, athough showing signs of growth. Quite clearly, we feel risk is being mispriced at current levels given the economic backdrop and developing pressure upon corporate revenues/margins/earnings. At some point, the market will view the central banks will be non-sequitur.

STRATEGY: The S&P 500 remains above the 160-wma long-term support level at 1375; and the standard 200-dma support level at 1580. But perhaps more importantly, the distance above the 160-wma falied at the +23- to +25% zone that is our “bubble-like rally” threshold. Hence, a correction of some proportion is forthcoming — perhaps -15% or more.
10-Year Note Yields
THIS MORNING MARKETS ARE MOSTLY “HIGHER” as the past several day decline across all the capital markets, excluding the bond market, looks to try and regain its footing. After last Wednesday’s surprise decision by the Fed to keep their bond-buying campaign in place for the time being, the markets have begun to worry that what they are seeing is not what the Fed is seeing, or else they would have come to the taper table. They did not, and this is causing confidence concerns amongst market participants. And this is developing against the backdrop of strengthening Chinese and European manufacturing and confidence figures.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.