12.21.2011
By Markets Media

Choppy Trade

Mixed earnings, stagnation in Europe and a host of other factors bring volumes down and keep the tape chopped like a salad.

U.S. equities flew all over the tape in Wednesday’s trading with no clear direction on which trend traders would go after. Late in the day, traders ramped the bid up and retraced over 100 points in the Dow Jones Industrial Average to close the index green at 12,107.

Meanwhile, the S&P 500 closed positive on the day at 1243. The ramp most likely occurred due to earlier in the day when an extreme level of support was tested at the 1232 level. It didn’t break and thus, the S&P was able to head higher.

Interestingly, a few research firms and internal research groups at banks discussed the fate of the euro. Consensus is that the recent rise in the EUR/USD trade is due to a short squeeze that is essentially at the end of its run. Next up for the doomed currency is the 1.25 level, depending on what happens in combination of European nations, the ECB and the IMF.

Agricultural commodities rallied hard on Wednesday whilst precious metals stayed relatively unchanged and traded in a thin range. Corn, cocoa and soybean meal all gained a few percentage points in trading on Globex.

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