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Consumer Confidence Falls, Home Sales Slump, Auguring Trouble for Holiday Shopping Season

By : Mike Wright
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With the holiday shopping season approaching, crumbling consumer confidence and slumping home sales, could prove to be a bad combination for retailers and the broader economy, according to BetOnMarkets.com's Michael Wright. The worry is that the labor market may contract further and choke off the holiday spending that retailers are waiting for.

While the news may seem bleak, some traders were hoping that this turn of events would yet again force the FOMC to trim interest rates. While a lower interest rate would be a great bonus for consumers with debt, it can have negative effect on the American companies that have international subsidiaries or imports from other countries.

A lower interest rate has a negative effect on the currency of that country, which means companies like Wal-Mart who import the majority of the items you find in the aisles from china, will incur much higher costs for those items, and will have to eventually increase prices. Higher charges at the local store will squeeze spending budgets even more, and that's not taking into account the higher costs consumers now face at the petrol pump.

Another major issue a rate cut unleashes, on the already battered consumers, is inflation. In order to maintain inflation within the targeted band, the FOMC increases or decreases rates, as it sees fit. Over the last few meetings, the FOMC stated that the threat of creeping inflation was preventing them from making cuts. Obviously they decided that the risk of higher inflation was worth it last time. Will the FOMC take that risk again, well your guess is as good as mine.

While there remain a lot of questions to be answered about the current state of the markets, and potential market direction, the one area that is now becoming clearer is that we will possibly be experiencing an increase in volatility in the SP500.

This means that while the market direction won't be known, any move will be overreacted. The main reason for this is that most traders have been very skittish and get out the moment more bad news hits the market.

For that reason, it would be in the best interest of the trader to use the 'Up or Down' option available at BetOnMarkets.com. With this option, a trader will profit if either of the triggers, which he sets on either side of the market, gets hit.

A Trade on the SP500 with a 19 days term, and 50 points of the spot up, and 50 points down, will potentially return an ROI of 10%.

- THE END -

Contact Details:

Email: editor@my.regentmarkets.com Tel: 35621316105

Address: Regent Markets (IOM) Limited 3rd Floor, 1-5 Church Street Douglas, Isle of Man IM1 2AG

Betonmarkets.com is the leading fixed-odds financial betting website. The website has processed over 10 million bets since inception in 2000, and generates annual turnover in excess of US$ 100 million. Betonmarkets offers a wide range of fixed-odds financial bets on forex rates, stock indices, and international stocks.

Betonmarkets is operated by the Regent Markets Group of companies. Regent Markets is affiliated to the Regent Pacific Group, a Hong Kong-listed investment group. Regent Markets has offices in three countries, and holds bookmakers licenses in the Isle of Man, the UK, and Malta.

Fixed-odds financial betting offers particular advantages over other forms of financial betting and investments, such as limited risk, potentially high payouts, and unique market opportunities. Particularly popular is Betonmarket's Range Bet, which offers the opportunity to profit from a period of quiet market action.

Betonmarkets also offers the following bet types: the Bull/Bear bet, the One Touch bet, the No Touch bet, the Range and Expiry Range bets, the Double One Touch and Double No-Touch bets, and a variety of intraday bets. Contracts are available on foreign exchange rates, major stock indices, and stocks.

Fixed-odds bets are also known as binary options, binary bets, contingent claims, spot options, box options, clickoptions, and offer market participants a unique tool to profit from market movements.

BetOnMarkets Bet Types:

One Touch Bet: You would buy a one-touch bet if you believe the market will touch a given point at least once before the bet expires. In other words, a one-touch pays out, if at any time prior to expiration, the market touches or trades through the specified barrier. Example: [Pays 100 if the FTSE touches X between today and date T]

No Touch Bet: A no-touch bet is the opposite of the one-touch bet. You would buy a no-touch bet if you think the market will never reach a certain level within a specified range of time. Example: [Pays 100 if the FTSE does not touch X between today and date T]

Bull Bet: You would buy a bull bet if you believe the underlying security/index/currency pair will be higher than a certain level (also referred to as the barrier level) on the maturity date. Example: [Pays 100 if the FTSE closes higher than X on date T]

Bear Bet: You would buy a bear bet if you believe the underlying security/index/currency pair will be lower than a certain level (also referred to as the barrier level) on the maturity date. Example: [Pays 100 if the FTSE closes lower than X on date T]

Expiry Range Bet: You believe that the market will be between two distinct levels (high and low) on the expiry date. Example: [Pays 100 if the FTSE closes between X and Y on date T]

Barrier Range Bet: You believe that the market will never touch two pre-determined barrier levels (high and low) before or on the date the bet expires. In other words, when you buy a barrier range you will win only if the market never touches the two barrier levels you have chosen. Example: [Pays 100 if the FTSE never touches X and Y between today and date T]

Double Touch Bet: You believe that the market will touch two pre-determined barrier levels (high and low) before or on the date the bet expires. In other words, when you buy a barrier range you will win only if the market touches both of the two barrier levels you have chosen. Example: [Pays 100 if the FTSE touches both X and Y between today and date T]

Up or Down Bet: You win if the market touches either of two pre-determined barriers before or on the date the bet expires. Example: [Pays 100 if the FTSE touches either X or Y between today and date T]

Double Up Bet: A Double Up bet pays two times the premium if the market rises above a given level between the time of purchase and the close of trading. It expires at the close of business on the day of purchase of the bet. Example: [Pays 100 if the FTSE closes above X between now and the close of trading today]

Double Down Bet: A Double Down Bet pays two times the premium if the market drops below a given level between the time of purchase and the close of trading. It expires at the close of business on the day of purchase of the bet. Example: [Pays 100 if the FTSE closes below X between now and the close of trading today]

Intraday Double Up Bet: Buy this bet to play a market rise between two given hourly market times today. You will have the possibility to set the starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100 if the FTSE rises between the starting time hour and the expiry hour]

Intraday Double Down Bet: Buy this bet to play a market drop between two given hourly market times today. You will have the possibility to set the starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100 if the FTSE declines between the starting time hour and the expiry hour]

Run Bets: These fun bets are over in the space of less than a minute; so you can make money in seconds. Here, you have to guess the last decimal digit of say, the USD/JPY (predict 3rd decimal place) after 5 ticks.

About the author:
Name: Mike WrightAddress: Regent Markets (IOM) Limited 3rd Floor, 1-5 Church Street, Douglas, Isle of Man IM1 2AG, British Isles.Phone: 35621316105 Email: editor@my.regentmarkets.comURL: http://www.betonmarkets.com


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