Technical vs Fundamental Analysis Appearance vs Reality ------------------------------------------ Why Traders Love the Dollar and US Stocks The Dollar Index rose to its strongest level in 11 months today but the big story was the S&P 500, which hit record highs. For the first time ever, the index broke the psychologically significant 2000 mark which may be surprising to some investors because the milestone was reached at a time with lackluster U.S. growth. For example, all of today’s U.S. economic reports surprised to the downside. New home sales dropped 2.4%, manufacturing activity in the Dallas region expanded at the slowest level since March and according to Markit Economics, the service sector and economy in general lost momentum in the month of August. This leaves everyone wondering why U.S. assets are so attractive and the answer is because there are no better alternatives. The U.S. economy could be growing at a faster pace but we’re not seeing the same degree of retrenchment that is occurring in Europe and New Zealand. The lack of better alternatives is the main reason why investors are piling into all U.S. assets from stocks and Treasuries to the dollar. Federal Reserve Chairwoman Janet Yellen soothed the doves last week by refraining from talking about the need to change their guidance or backing an earlier rate rise. In doing so, she has the market believing that interest rates will remain low and monetary policy easy for an extended period of time, providing the perfect backdrop for a rally in Treasuries and equities. Durable goods and consumer confidence are scheduled for release tomorrow and while we feel that the dollar can extend its gains, it is also extremely overbought and due for a correction. ------------------------------------------ TAK FAHAM BACA INFO DI ATAS? Xpe, saya translatekan dalam bahasa mudah... USD is on Steroid or some kind of Pil Ekstasi atau pil kuda walhal sebenarnya ekonomi mereka is already dalam ICU, intubated & ventilated.. Already rotten, not just a brain dead. Tengok chart S&P kebelakangan ni, nanti dia punya dip lagi scarry.
Posted on: Tue, 26 Aug 2014 02:44:29 +0000
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