service@toptradinginfo.com| 06/21/2010 | ||||||||||||||||||
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Dow has met the resistance, market is overbought and might reverse
Market Comments: This morning's headlines: 1.China pledges yuan flexibility. On Saturday, ahead of this week's G-20 summit, China released a statement pledging to "increase the renminbi’s exchange-rate flexibility" following an improvement in the economy. 2.Asian markets were all up in overnight trading, with the Hang Seng up 3.08%. European markets are also all up in early trading, and U.S. futures suggest a higher open as well. 3.China and Australia have just agreed to a series of mining investments that will see China invest $8.8 billion in Australia. 4.JPMorgan in talks on Brazilian fund. JPMorgan (JPM) is said to be in advanced talks to buy Brazilian hedge fund and private equity group Gavea Investimentos. 5.News that Saudi Arabia's central bank is holding nearly twice as much gold as previously thought helped lift the metal to a fresh high of almost $1,265 per troy ounce. 8:24AM Pacific Time, Dow +0.99%; Nasdaq +0.73%; S&P500 +0.83% Today's market factors: 1. US dollar index is down (Positive). 2. Treasury Bond is down(Negative). 3. Major Asian and European markets are up (Positive). 4.China's vow to allow a flexible yuan invigorated optimism in the global recovery and raised the outlook for sales in the long term at U.S. multinationals. (Positive). The US stock market rallied sharply at the open due to optimism on global economy after Chinese announced more flexible currency policy. We need are suspecting whether the stock market can continue to rally due to the following reasons: 1. The Chinese move is widely expected, sell on news may be what is investors have mind. 2. As the RMB floats against the US dollar, it is not gaurantee that the RMB will stay strong. 3. The stock market is overbought after the recent move and the Dow is at its 50 day moving average 10587. 4. Today is the beginning of summer, it is known for market to reverse trend during this day. Beware of a market reversal today! Upgrades: ANDE, GXDX, GDP, SYNA Downgrades: ASCA, TMRK Strong Sectors: BIK, CAF, FXI, IYM, JJC, KOL, RJZ, TAN, UNG Weak Sectors: FXY, TLT, UUP Gainers: AIPC, MELA, BVF, CENX, IFLG, MTL, PLX, EDC, IVN, CTRP, AA, SWC, CHU, TC, TSL Losers: AFFY, CPO, FXP, EDZ, RAH, GPN, DRV, ERY, PSEC Foreign Markets: SHANGHAI COMPOSITE: 2,586.21 +72.99 (+2.90%) HENGSENG: 20,912.18 +625.47 (+3.08%) NIKKEI 225: 10,238.01 + 242.99 (+2.43%) DAX: 6,274.76 +57.22 (+0.92%) FTSE 100: 5,291.71 +40.54 (+0.77%) Taiwan Weighted Index: 7,635.56 + 142.45 (+1.90%) Crude Oil: 79.49 +1.27 +1.62% Gold: 1254.90 -3.40 -0.27% Currencies: EUR/USD 1.2391 +0.0007 +0.06% USD/JPY 91.24 +0.56 +0.62% GBP/USD 1.4833 +0.0023 +0.16% |
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