Before the release of the Non Farm Payrolls last week on Friday, US markets could not catch a break. Lower highs and lower lows were put in on the daily chart of the S&P 500 after the new high was printed on November 29th. On Thursday, stocks took the day to consolidate inside the prior days price range, but exploded to the upside at 7:30 cst. Markets were treated to a better-than-expected jobs number where 203,000 jobs were created and the jobless rate in the US hit a five year low. Additionally, Consumer Confidence in the US shot up to a five year high soon after the jobs numbers were posted. In short, LAST WEEK traders and investors used favorable reports as a reason to buy equities. The big question is whether the stock market will react the same way THIS WEEK, when data is released. We will have to wait and see. [Read more...]
Weekly Gold Report (November 25th through November 29th)
New highs were seen in US equities last week as investors continue to bank on the FED maintaining their participation, at least until the end of the year.
Due to the shortened Holiday week in the US, we expect lighter volume across the board in the futures markets. Anyone that has traded Holiday markets over the years knows that low volume trading can either bore a trader to tears, or leave markets vulnerable to volatile, directional movement. Being aware of the potential for either scenario is important this week, and making arrangements for either is smart. [Read more...]
While the markets are packed with data throughout the week, the most important numbers will come on Wednesday when the FOMC releases their Interest Rate Decision. We will also hear from the Bank of Japan later in the week, but that report is scheduled as tentative at this point. Aside from these two Central Bank announcements, we expect the scheduled data that includes unemployment, CPI, PPI, Industrial Production, Home Sales, and Retail Sales data to take a back seat. [Read more...]
Weekly Gold Report (October 14th through October 18th)
What can be said about the week that lies ahead? More of the same sounds about right. After Democrats and Republicans spent another full calendar week bickering and positioning, we seem to be no closer to a deal than we were in the prior week, and the threat of a default on debt continues to loom. [Read more...]
Weekly Gold Report (October 7th through October 11th)
Week two of the US Government Shutdown has officially begun and it appears that we are no closer to a resolution than we were when last weeks business concluded. Despite the fact that there are a few noteworthy economic figures and speeches being brought to the markets this week, all eyes will continue to follow news from Washington throughout the next five trading days.
In an effort to not bore readers with the same information that headlines every financial publication each day, I will spare you the details of the US Governments sophomoric behavior over the debt ceiling and suggest that traders should expect this debate to continue to weigh on the markets. If the last five years have taught us anything about the US Government and the big decisions and deadlines, we should probably expect some form of compromise in the eleventh hour on October 17th. While it is certainly a possibility that a resolution could be struck in advance of that date, I would not bet the farm on it. [Read more...]