Keep an eye on the (FXE) – a good indicator of next week market fluctuations.
The end of this week trading mirrored what happened at the beginning of it.
We are in a drawback movement and may be headed for more of it.
Today the Dow Jones fell 100 points, the S&P slip .8 Percent, the NASDAQ followed with .2. percent.
All of this downswing activity can create a lot of misunderstandings about what’s really happening to the market.
If investor sentiments would only rely on this week market direction, everyone would be in a state of panic.
Don’t be fooled by the down flow of market direction, the reasons under laying this movement doesn’t necessarily reflect what’s really happening out there.
So what’s causing the beating of stock?
Well, for the last month or so, hedge fund managers are betting against the US dollar and since the Euro is going the opposite way, they have no choice but to dump stock, simply because they are over their head on borrowed money and need to liquidate their position.
One of the best ways to evaluate next week stock market movement, is to keep an eye of the symbol (FXE) which gauges the Euro dollars against the US dollar.
So the bottom line, unless we have seen the end of over the head margin effects, stock will probably continue to fall following the foot steps of The (FXE).
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