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Stock Markets Fizzle Out After Freddie and Fannie Bailout Rally
A week that showed so much promise ended up being a huge let down. A
lot of ink was spent on the take over of Freddie Mac and Fannie Mae by
the US government, and it allowed equity markets around the world to
open the first trading day up 3%. This sadly didn't last, as traders
realized quickly that this take over was akin to putting a band-aid over
a third degree burn; it was not a long term solution.
The theme for next week is inflation, as UK, EU and USA are all
releasing some sort of inflation numbers. This is important for traders
of Equities, Futures and Forex as these numbers will have a strong
effect on each of those categories. We expect inflation to be high in
every country, as rising commodity prices are filtering into the
consumer prices at this time of the year. Also on a side note, this
Wednesday, the Bank of England will be releasing minutes from their last
meeting, while most of the information is stale; there are a few useful
titbits which can give you a glimpse into the future about the BOE's
concerns when it votes on a rate decision.
There is uncertainty in the equities market; smart traders use every
move up to short the overall market. The most obvious sign that the
market is jittery came on Monday, when in the middle of a huge run-up, a
stale story of a bankruptcy filling by American Airlines caused a huge
dip in the major indexes.
As a result, traders at BetOnMarkets believe a one touch to the
down-side of the Wall Street index is the best value play out there. A
one touch at 11200 on the Wall Street Index (Dow Jones) with a 14 day
term returns more than 22% ROI.
Note: The Investors Chronicle is doing a survey of stockbrokers and
financial service pr oviders. Take the survey and Vote for BetOnMarkets
today.
Author : Mike Right
Company: Regent Markets (IOM) Limited
Email: editor@regentmarkets.com
URL:http://www.BetOnMarkets.com/
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