Forex Investment and Currency Trading

The Dow Jones Transportation, the Dow Jones Industrials, and the S&P 500 Indexes have fallen short of important monthly and weekly closes. 
 
The Dow Jones Transportation Index
Until today, the 200 month moving average has not been breached for 33 years (the last time it was breached was in 1976). Overall this is a concerning chart as it gives a leading indication of where the Dow Industrials are going (according to the Dow Theory).
The next major support level on the Dow Transportation index is at 1,918, approximately 23% below the current level.
 
SPX 500 Index
The weekly close today is beneath both the 2002 [...]

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US will likely report the largest jobs decline in this cycle… Several February reports this week will likely show further declines in employment reflecting the dire economic situation shown by the latest business surveys. Market anticipates a new cyclical high in the unemployment rate of 8% in February, and expect it to move into double-digit territory in late 2010.
… as economic activity is falling around the globe This week we will see a number of indicators ranging from IP and GDP to a slew of PMI surveys that in all likelihood will reinforce our view that the global growth in 2009 [...]

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Governments everywhere are trying desperately to stabilize the global economy and financial system, but what may not be fully appreciated is the severe trauma that has hit the US household balance sheet – $20 trillion of net worth destruction that is very likely going to trigger a multi-year reassessment of the cash flows that the boomer population is going to require to cover its post-retirement quality of life. The supply of bonds is rising sharply, to be sure, but do not underestimate
what the demand for income-bearing securities is going to look like in the future. Just as long bond yields [...]

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When you buy fixed income securities, typically bonds, you’re lending money to earn some income. The borrower might be a corporation or  a state or federal government.

Why Invest in Bonds?
Buying bonds reflects a decision to make income a higher priority than protection. How much more of a priority is still a matter of degree you can control.

Money is needed Here’s an example. A city may need to raise money to build, renovate, have operating money, or simply to pay off other debts. It hires an investment banker to help. The banker helps determine how much money it will need, how [...]

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