On the heels of the Commodity Futures Trading Commisions’s (CFTC) release of the long awaited regulations that will govern the spot forex market, today we see this is a beast that seems to only grow. Earlier, the Bank of International Settlements (BIS) released the results of their triennial survey of the forex market. The study found that the average daily turnover in forex had grown by 20% in just the last three years to an astonishing $4 trillion. No other market can even come close. What’s more, that growth happened in the midst of a global recession, in case anybody forgot.
Archive for the ‘Markets’ Category
Forex can grow in a recession. Can it under regulation?
Wednesday, September 1st, 2010When Washington’s away, investors will play
Wednesday, August 4th, 2010With regulatory reform set to rock the trading universe, what’s happening in Washington is never far from the minds of investors. Political uncertainty can equal skittish markets these days. However, this phenomenon is nothing new. According to this MarketWatch story, the stock market historically has performed much better when Congress is out of session than when it’s in session (between 1897 and 2004, the Dow had annualized return of 5.3% when Congress was out of session vs. just 0.4% when it was in session). Congress is set to go on its summer recess at the end of this week, so, if history is any indication, the market could be in for a lift. (more…)
Top 10 stocks of summer
Monday, July 26th, 2010Looking for some stock picks for July? Tom Busby, president and CEO of DTI, offered some ideas at DTI’s Windy City Workshop in Chicago this morning. Busby said the current market “gives hope for opportunity.” He said that in general, traders should pick stocks that are liquid and widely followed, so that news on companies is easily available.
Managing regulation
Wednesday, July 21st, 2010The International Securities Exchange (ISE) announced this week that it is introducing a new order type called “Do not route” (DNR). Both “priority” and “professional customers” will be able to designate an order DNR so that it would not be routed to another exchange if the ISE is not posting the National Best Bid or Offer (NBBO).
No double dip, says Fed
Wednesday, July 14th, 2010The Federal Reserve released the minutes of its June meeting today. Here are their predictions, which contrast with what many experts are predicting (namely, a double-dip recession) as economic data on housing and employment remains grim. In the minutes, the FOMC said it “continued to anticipate a moderate recovery in economic activity through 2011.” However, due to current financial conditions “most participants revised down slightly their outlook for economic growth, and about one-half of the participants judged the balance of risks to growth as having moved to the downside.” (more…)
Big brother alert
Tuesday, July 13th, 2010On July 12 the Commodity Futures Trading Commission (CFTC) proposed rulemaking that “calls for the collection of certain ownership, control and other information for all trading accounts active on U.S. futures exchanges and other reporting entities.”
I did a double take when I read it. What stuck in my head was the word “all”. Not to sound all conspiratorial but “all trading accounts active on U.S. futures exchanges and other reporting entities.”
Gold, stocks, oil: Markets in flux
Thursday, July 8th, 2010Looking for certainty in the direction of financial and commodities markets? Now is probably not the time. That was the overriding theme from today’s webinar on the third quarter market outlook by Darin Newsom, senior analyst at Telvent DTN. “‘Flux’ is the best word to describe these markets,” Newsom said. “These markets can change on a moment’s notice.” For the Dow Jones Industrial Average, Newsom said the long-term trend remains down while the short-term trend is uncertain. “I’m basically flat this market. It’s difficult to read and I’m getting mixed signals.” (more…)
Stock market goes bear hunting?
Tuesday, July 6th, 2010The Dow Jones and S&P 500 are up today, but recent dips due to the disappointing unemployment numbers from Friday, as well as deeper pullbacks from earlier in the year, have some analysts wondering if what was once thought of as a correction is actually the beginning of a longer-term bear market. This CNBC piece suggests that a bear market is looming, with one analyst saying that the market is pricing in a significant slowdown. For the markets piece in our August issue, we spoke with analysts who were of differing opinions about where stock indexes were headed for the rest of the year. Some saw a recovery in the fall, while others agreed that a long-term bear market is on the horizon. Be sure to check out the complete analysis on stock indexes in our August issue, online July 26, and let us know where you think the market is headed and how you’re planning your trading accordingly in the comments below.
CBOE’s long winding road
Tuesday, June 15th, 2010Ever since the Chicago Mercantile Exchange’s (CME) initial public offering in 2002 —if not before — the writing was on the wall in terms of the direction of member-based financial exchanges.
Exchanges were looking to demutualize and access the capital markets by going public. And the Chicago Board Options Exchange (CBOE) being the preeminent U.S. based options exchange, with a hungry and innovative challenger in the International Securities Exchange (ISE) hot on its heels, was no different. However, CBOE had a legacy to overcome.
Currencies under pressure
Tuesday, June 15th, 2010The third quarter for currency traders looks to be another rocky one, according to Forex.com, which released its Third Quarter 2010 Markets Outlook today. A weak economy and troubles in the Eurozone are the usual suspects that will continue to hold the forex markets down. Analysts say the dollar will be the safe-haven currency as euro weakness will continue into 2011. The commodity currencies, the Australian dollar and Canadian dollar, should outperform, but are at risk if global recovery falls, according to the report. (more…)
