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Follow a stream-lined approach to Contrarian trading where expertise guides you through a graduated learning program. Select pre-screened opportunities that support a complete entry and exit strategy and also track your orders to target with recommended adjustments based on current market sentiment. If you are interested in finding out more about this successful approach to trading and how to become part of this community, please email me direct at randystradingdesk@gmail.com

Wednesday, March 21, 2012

March 21, 2012- Trading Turning Defensive as Momentum Fades

The major U.S. index futures are pointing a moderately lower opening on Wednesday, with sentiment turning skeptical about the sustainability of recent gains. A report released earlier in the day showed that housing starts declined. Nevertheless, building permits-an indicator of future housing activity rose close to a 3-1/2 year high. The scope for sustenance of recent gains is limited, given the extended rally we have been witnessing since the middle of 2011. The resource space is also experiencing weakness on a Chinese move to raise retail fuel prices and a muted Chinese iron ore demand forecast issued by given by BHP Billiton (BHP). The resource space is also experiencing weakness on a Chinese move to raise retail fuel prices and a muted Chinese iron ore demand forecast issued by given by BHP Billiton (BHP). U.S. stocks overcame initial weakness and advanced on Tuesday, encouraged by Apple’s (AAPL) plan for its mammoth cash reserves. Additionally, the housing data released yesterday did not suggest pessimism. The major averages showed apprehension in early trading but began advancing in early afternoon trading. Thereafter, the averages moved sideways for much of the session before giving back some of their gains but still closed higher.

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