Where is the Dow & others heading in 2005?

hmm, FTSE futures still down, US futures flat-ish, and this is despite Oil easing off since yesterday..

do they know something we dont?
 
1. The Chinese have denied any intention of loosening the peg.
2. Some hedge funds seem to have become forced sellers of equities due to their exposure to GM and Ford bonds.
3. Cisco's numbers were not very impressive.
4. Trade balance????
 
LONDON (AFX) - The dollar recovered ground against the yen after an earlier story suggesting that China was about to revalue its currency was discredited.

China said it will not use the expansion of foreign exchange trading in Shanghai next week as an opportunity to reform the exchange system, despite fevered speculation in global currency markets.

Markets were caught off-guard by a report on People's Daily website mistakenly suggesting that reform of the yuan is to begin next week.

The report apparently resulted from a mix-up in the English translation of a Chinese language report May 7 that quoted a Hong Kong official talking about yuan revaluation.

But a central bank spokesman said there are no plans to adjust the currency next week and the report was mistaken.

His remarks helped bring the dollar back above the 105 yen mark, following a sharp break below in the wake of the report.
 
Racer said:
LONDON (AFX) - The dollar recovered ground against the yen after an earlier story suggesting that China was about to revalue its currency was discredited.

China said it will not use the expansion of foreign exchange trading in Shanghai next week as an opportunity to reform the exchange system, despite fevered speculation in global currency markets.

Markets were caught off-guard by a report on People's Daily website mistakenly suggesting that reform of the yuan is to begin next week.

The report apparently resulted from a mix-up in the English translation of a Chinese language report May 7 that quoted a Hong Kong official talking about yuan revaluation.

But a central bank spokesman said there are no plans to adjust the currency next week and the report was mistaken.

His remarks helped bring the dollar back above the 105 yen mark, following a sharp break below in the wake of the report.

Even IF the Chinese do opt for some revaluation of the Yuan it's impact will largely be psychological rather than economic. The Chinese are not going to devalue by a significant factor against the dollar, they will either let it float within a 5 - % band or go for a new peg at around 5% - 10% higher.

Will this solve the fiscal deficit - of course not. A 10% change in the exchange rate will not massively boost US exports to SE Asia but it will boost US domestic inflation on imports, which will be minimally affected by the price increase because there still won't be a more competitive alternative elsewhere.
 
Hey traders, I feel the DOW IS GOING TO TEST THE 10,500 LEVEL ONCE AGAIN THIS YEAR (MAYBE IN THE NEXT FEW MONTHS). This will of course be tested by any negative data coming out such as the non-farm payrolls, which if not positive, will drag the markets down quickly like last month!
Of course, it has been proven that between May-October, the markets seem to be fairly bearish so this could act as a guide to quick moves up and down so that by the end of October, the market may not be too different from its present levels.
However, I would expect some bullishness during November and December!
 
Trade Deficit has narrowed to $55.0 bln, below expectations of $62.0 bln and February's record $61.0 bln figure... As a result, futures trade gets a modest boost, still suggesting a slightly higher open for the indices, while the dollar has rallied and bonds have slipped, as the 10-yr note is now off 5 ticks yielding 4.22%
 
anyone trade with CMC? i got stopped out at 10220 when we never got to that!!! takes the **** or what!! and now it will most like finish 10300+..
 
ig index had a spike down to 10,214..

this is why stops are for mugs..

manage your positions instead..

one of the best bits of advice i read on here, or elsewhere it might have been, was:-

2 rules of trading

1) dont lose money
2) dont lose money

stop losses force you to break both these rules..
 
destiny said:
anyone trade with CMC? i got stopped out at 10220 when we never got to that!!! takes the **** or what!! and now it will most like finish 10300+..

spike low 10227 at 9:16 US on my futures chart, and if CMC moved it around that price.. as they would.....
 
destiny said:
anyone trade with CMC? i got stopped out at 10220 when we never got to that!!! takes the **** or what!! and now it will most like finish 10300+..

I used to but due to spikes appearing out of nowhere including six in one day on MSFT a couple of weeks ago.
 
destiny said:
anyone trade with CMC? i got stopped out at 10220 when we never got to that!!! takes the **** or what!! and now it will most like finish 10300+..[/QUOTE

Who is CMC ? Presumably you were stopped out on a long !
 
FetteredChinos said:
ig index had a spike down to 10,214..

this is why stops are for mugs..

manage your positions instead..

one of the best bits of advice i read on here, or elsewhere it might have been, was:-

2 rules of trading

1) dont lose money
2) dont lose money

stop losses force you to break both these rules..
GOOD ON YOU CHIEFrespect
 
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