Forex Investment and Currency Trading

The view since late 2008 has been that there was a good potential for a decent bear market rally in the equity market that could take us into end Q1 and maybe even end Q2 before a likely re-emergence of further sustained weakness and likely new trend lows. Even with that view technician saw little likelihood of an extension of that move into a new bull market
The low to high bounce has so far been shorter and shallower that experts would have expected. While this does not rule out the possibility that we could see renewed gains there are critical [...]

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Market likely to recover at a new bottom
As for risk/cyclicality, yesterday may have been a breakdown day – and on the day no less that the budget bill was signed to such fanfare: Perhaps the Administration spent too much time hyping up expectations. That assertion is open for debate, but what isn’t is that we had a huge selloff in big volume yesterday (+29% on the NYSE; +18% on the Nasdaq). All the major indices are now languishing below their 50-day moving averages and the 200-day line is still in a full-fledged bear market. The market is now down to [...]

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Dow Jones Transportation Index – Bullish weekly reversal from the lows

Dow Jones Transportation Index: Is this still “holy grail” for the Equity markets? It has posted a bullish weekly reversal from the lows of the trend by closing above 3,170. This suggests that further gains towards resistance levels at 3,638 and 3,737 are likely and if the Dow Industrials are to follow then they could indeed rally aggressively following the hold of the 76.4% Fibonacci retracement…
Dow Jones Industrials – 76.4% Fibonacci support holds

Dow Jones Industrials: The low on the index on Feb 5th was at 7,845 which was marginally above [...]

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In equity space, the week was dominated by sharp gyrations in Financials. These ended the week up in most areas, although they were still down substantially over the month. In the UK, where the moves were among the sharpest, banks finished the week up +18%, but still down 22% on the month. Cyclicals also had a roller-coaster ride through the week, and with a number of important cyclical indicators on the docket, the moves here will bear close watching.
More broadly, in equities, like other asset classes, traders have been watching for data stabilization, and signs of normalization in financial markets and [...]

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