A Modest Monday Selloff

On February 27, 2012 by TradingDesk

Most financial markets are seeing modest selling this morning, as disappointment mounts after a weekend meeting of the G20 failed to deliver on hopes that the world’s largest countries would increase the IMF’s bailout fund.

Energy prices are slipping along with stocks, although the moves are less than 1% and have done nothing to change the bullish technical outlook. Friday’s commitment of traders report showed that fresh speculative dollars continue to flow into commodities, with certain measure hitting record highs. With record long bets already placed, and energy contracts nearing their 2011 peaks, it seems that a fresh influx of funds may be needed to keep the rally from stalling out.

Headlines from the Middle East have quieted down over the past 24 hours which is helping to allow the brief respite our bull run. Don’t expect the lull to last for too long.



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