You may think that it's too long for viewing. But, these some minutes are quite valuable for your trading and investing. This is the reason why our expert - Pitguru Frank LaMantia - analyzed the financials market this week for us! Note down the points and be ready for your new trading week!

The Financials Review

The Fed is starting to look at mortgage companies and the procedures they used on foreclosures. The practices that have been used are expected to be determining if there are weaknesses in the system. The goal is to see if those weaknesses have led to improper foreclosures. The big question is who tipped off the banks about this? Why would the banks halt foreclosures out of nowhere? Banks do have relationships with the Fed so it could be possible that they were given the heads up to get paperwork in order.

The G-20 met and came to an agreement not to devalue their currencies to raise exports. China has been on the radar as a country that has manipulates its currency to make exports work in their favor. This may raise the GDP artificially for the countries that decide to play in these sorts of currency games. Does the U.S. win or lose in these types of tactics? The U.S. will purchase more products from countries than it exports. Not only does China purchase most of country’s debt but much of what they do sell. One could surmise that China has too much control over the financial situation in the States. The dollar has dropped at such a fast rate and has many concerned. A reversal could happen before the New Year so please keep an eye fixed on it! The DOW was up over 50 points while S&P was over 9 points in pre-market trading. The S&P is up to 1192.00 and has showed resilience as the DOW is up to 11,200 as both have moved through technical levels.

Companies that have large revenue streams typically strip down the company and give structural integrity. For long-term portfolios one should be looking for these companies to lead the way toward growth. Earnings are still running the show this week and fueling the momentum of the market.

For more information for your trading, spending time going around other interactive futures markets!


Chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.

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