Jittery Trading Following Overnight Stock Market Sell-off in China
August 19, 2009 by Trace
Filed under Trading in the Market
Markets are trading in a jittery fashion following an overnight stock market sell-off in China. Since China’s economy and financial markets are so inter-linked with ours; it stands to reason that our markets will react in similar fashion to theirs.
Yesterday the Dow ended the day with an 82 point gain but looks to open 67 points lower in empathy with China. Over in the metals market we find the complex trading lower despite only mixed background signals from Oil and the Euro. Crude is 27 cents per barrel lower in advance of today’s Oil Inventory report. While we do not have the actual estimates at this time; we are told that Oil is expected to show a build in supply but Gasoline a decline.Last trade $68.92.
Given today’s idle economic calendar we find the Euro trading quietly and up 8/100ths of U.S cent higher at $1.4126. As for the metals; Silver is trading 43 cents lower at $13.57. Traders are pointing to a China induced sell off in Copper for the weakness in Silver. Remember Silver is often mined as a by-product of Copper. Gold is $4.00 lower and changing hands at $934.00. Palladium is $272.00 down $3.00. Platinum is down $21.00 at $1211.00.
While the stock market tries to digest the future of our economy; investment guru Warren Buffet had some positive comments. He stated his belief that “the U.S. economy is out of the emergency room and is on a slow road to recovery.”
In other matters of interest Hurricane Bill has been upgraded to a powerful category 4 storm packing winds of 135 mph. The storm is expected to turn north bypassing the east coast of the United States.
Thursday’s economic calendar:
U.S. Initial Claims
U.S. Philadelphia Fed Survey
U.S. Leading indicators
German Producer Prices
Today’s Housing Data Below Street Expectations
August 18, 2009 by Trace
Filed under Trading in the Market
The dollar is still the premier world currency, and the gold market’s near-term direction could depend on its interactions with the currency market and the overall economic sentiment. The Euro edged higher after today’s housing data clocked in below Street expectations, and inflation continued to be non-existent. Last on the Euro $1.4118 up 36/100ths of a U.S cent.
Gold bounced on Tuesday, following the previous session’s sell-off on doubts about economic recovery, and the strength of the dollar could set the tone for bullion in the near term. Crude jumped $2.02 per barrel reflecting today’s bounce in stocks. Gold rose amid a mixed bag of news as the dollar weakened and the U.S. producer price index fell more than expected in July. Last trade on oil $68.77.
As for the metals; Silver finished the day off 7 cents at $13.95. Gold rose $4.00 to $938.00. Palladium gained $3.00 to close at $275.00. Platinum was $1.00 higher finishing at $1224.00. Volume was light.
Over in the stock market the Dow is currently up 73 points with banking stocks leading the way. As for tomorrow; the economic calendar will be idle, but we will get the latest Weekly Oil Inventories to help stir the energy trading pot.
Thursday’s economic calendar:
U.S. Initial Claims
U.S. Philadelphia Fed Survey
U.S. Leading indicators
German Producer Prices
Sharply Lower U.S Stock Market Open Expected
August 17, 2009 by Trace
Filed under Trading in the Market
Apparently Asia was also disappointed by last Friday’s poor U.S. consumer sentiment report with Far East stock averages sustaining sharp losses. China didn’t help matters when it indicated that it’s recent step-up in commodities stockpiling was slowing. This is raising fresh concerns as to the sustainability of an economic global recovery. As a result; the large overseas stock declines are front running an expected sharply lower U.S stock market open.
The Dow which lost a sum total of 48 points last week is indicating a 180 point lower open this morning. Confirmation of the weaker open is being felt in both the Euro and Oil. Crude dropped another $1.76 per barrel adding to last week’s loss of $3.42. Last on Oil $65.75.
In forex currency trading, the Euro is 1.24 U.S cents lower against the Dollar at $1.4061. The metals are broadly lower as well. Silver is off 60 cents at $14.09. Gold is down $11.00 at $936.00. Palladium eased $1.00 to $274.00. Platinum is $1229.00 down $28.00 per ounce.
Traders in all markets are now nervously awaiting this week’s slate of economic data desperately hoping to see some positive economic signals. Traders need a reason to start buying again. Unfortunately today’s calendar is thin with only the New York Empire State Index of Manufacturing for traders to hang on to. The latest estimate calls for the August index to rise into positive territory. Look for a reading of 2.2 versus last month’s contraction on .55.
On the domestic front it seems the White House may now be willing to drop it’s divisive plan for a direct government run health care system. While President Obama continues to defend his plan; he is now leaving the door open to alternative approaches succumbing to public outcries over the matter.
Learn to Trade Forex by Game Playing
July 22, 2009 by Trace
Filed under Forex for Beginners
Forex is a complicated system which still often confounds people with years of trading experience. Knowing how a situation usually resolves itself does not mean that you will be able to correctly predict how it will resolve itself every time. The market data is an excellent way of judging what the situation is at any given time. It is also as good a way as you will find of predicting future market behavior. Nonetheless, it is not a guaranteed predictor and consequently even the most experienced traders sometimes make a mess of things.
The less experience you have – in anything – the more likely you are to have the wrong reaction to a given situation. If this is in a golf match, then all that rests on your mistake is a little personal pride. On the Forex market, it can end up costing you real money. It is therefore massively important that you have as much knowledge to back up your every decision as you possibly can. One way of accruing knowledge without making costly mistakes and potentially bankrupting yourself is to start by playing online Forex games. These are a kind of simulator which closely reflects the real-life market and tells you how good your instincts are – without ruining you if you make a mistake.
There are Forex games available on the Internet which run entirely free of charge. There is obviously some variation in quality, and you should ensure that you check out more than a couple before committing to one. The more experience you gather before playing live, the better your chances of making real money in the future.
Tuesday in the Currency Market
July 21, 2009 by Trace
Filed under Daily Forex Analysis
In the currency markets the Euro is trading flat at $1.4208; off 2/100ths of U.S cent. Crude Oil is a shade higher at $64.14 up 16 cents per barrel. Oil gained 42 cents yesterday. In stock trading the Dow ended yesterday’s session with a 104 point gain. Early indications are calling for an 11 point rise this morning. Before the markets open we will get earnings form Dow components Coke and Caterpillar which may well change the opening indication. Things are quiet for the moment on the geo-political front.
Metals are trading mixed with a slight negative bias this morning. Traders seem to standing on the sidelines given today’s idle economic calendar and little action in the Oil and Euro currency markets. Silver is changing hands at $13.56 off 9 cents. Gold is unchanged at $948.00. Palladium is $256.00 up $1.00 per ounce. Platinum is $15.00 lower with the last trade at $1175.00. Today’s Capitol Hill appearance by Ben Bernanke is having little to no impact on trading with much of the Chairman’s testimony already having been leaked to the press.
