BinaryOptionStrategy Analysis - page 11
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Binary Options Market Analysis – Stocks Retreat on Euro Zone Fears
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To read the Weekly fundamental analysis click here
Equities
Asian markets traded mostly lower, despite Monday’s strong gains on Wall Street. The Nikkei and Kospi both fell .9%, and the ASX 200 slipped .6%. China’s markets continued to climb, as the Hang Seng rose 1.1% and the Shanghai Composite rallied 1.7%.
Concerns regarding Wednesday’s European Summit, sent European markets lower. The CAC40 dropped 1.4%, while the FTSE eased .4% and the DAX edged down .1%. An unexpected cancellation of a meeting of financial ministers helped fuel the uncertainty.
In the US, stocks posted large losses, as disappointing earnings and fear over Europe’s debt troubles weighed on investors. The Dow tumbled 207 points to 11708, the Nasdaq shed 2.3%, and the S&P 500 declined 2%. The VIX jumped more than 10% to 32.22.
VIX Jumps more than 10%
3M sank 6.3% after falling short of analyst expectations for profits, and cut its outlook. Netflix shares plunged 35% after revealing that the recent price hikes had caused the company to lose more customers than expected.
Amazon reported weak earnings after the close and lowered its outlook, sending the stock down more than 12% in after hours trading.
Treasuries and Commodities
Bonds rallied as investors fled to safety. 10-year notes jumped 1 2/32 to yield 2.11%, and 30-year notes soared 2 26/32 to yield 3.13%.
A $35 billion auction of 2-year notes had a high-yield of .281% and a strong bid-to-cover ratio of 3.64.
In energy, crude oil continued to rally, advancing 1.9% to 93.01, while gasoline futures slipped .5%.
Precious metals rocketed higher, as silver climbed 5.1% to 33.25 and gold gained 3.1% to 1703.90. Copper slipped 1.1% to 3.411 after 2-days of large gains.
Currencies
The Canadian Dollar sank 1.2% to 1.0162 after the Canada’s central bank cut its growth forecast for the upcoming year. The Australian Dollar retreated .5% to 1.0417, while the Euro slipped .2% to 1.3898. The Yen touched another record high of 75.74 before slipping back to 75.97, up .2%.
Economic Outlook
Home prices fell slightly more than expected in August, according to the Case-Shiller Home Price index. Consumer confidence tumbled to 39.8 from 46.4, its lowest level since March 2009.
Wednesday’s focus will be the European Summit, amid hopes for a deal that could increase the European bailout fund. Wednesday’s reports will include durable goods, new home sales, weekly mortgage applications, and weekly oil inventories. Earnings are scheduled for Boeing, Ford, Visa, and Sprint.
Binary Options Trading analysis written by Bradley Welcher
Binary Options Analysis – US Stocks Gain, Bonds Fall on Bailout Progress
To read the Weekly technical report click here
To read the Weekly fundamental analysis click here
Equities
Asian markets traded mixed, shrugging off Tuesday’s steep drop in US shares. The Nikkei settled down .2%, the Kospi gained .3%, and Australia’s ASX 200 rose .4%. Modest inflation figures from Australia helped the index reverse from early losses, on hopes of an interest rate cut. The Shanghai Composite rallied .7%, and the Hang Seng rose .5%.
A similar performance was seen in Europe ahead of the European Summit. The FTSE rose .5%, while the DAX fell .5% and the CAC40 slipped .2%. Germany’s parliament approved an expansion of the EFSF bailout fund. Banks swung in a wide range, closing down nearly 1% after rising more than 1% earlier in the day.
US markets rallied with the Dow gaining 162 points to 11869. The S&P 500 climbed 1.1%, and the Nasdaq advanced .5%, as progress from Europe helped lift sentiment.
Dow Rallies 162 Points
Boeing gained 4.5% after beating earnings forecasts. Meanwhile, Ford shares slumped 4.5% even though it beat analyst forecasts. Sprint dropped 7% after reporting a loss in subscribers that was more than expected. Amazon shares closed down 12.7% on a weak outlook which prompted several brokerages to cut their price targets on the stock.
Treasuries and Commodities
Bond prices fell, erasing Tuesday’s gains. 10-year notes sank 27/32 to yield 2.21%, and 30-year notes fell 1 28/32 to yield 3.22%.
A $35 billion auction of 5-year notes had a bid-to-cover ratio of 2.90 and a high yield of 1.055%.
Energy fell, led by crude oil which dropped 2.6% to 90.74. Natural gas lost 1.7% to 3.596, an gasoline futures shed 1.6% to 2.6561.
Metals continued their recent advance, led by copper, which climbed 2.7% to 3.5135. Gold gained 22.30 to settles at 1722.70, and silver advanced 1% to 33.365.
Agricultural futures fell, with wheat losing 2.6% to 619.50, and corn down 2% to 637.25.
Currencies
The Canadian Dollar rallied 1.2% to 1.0045, reversing Tuesday’s losses. The Euro ended flat at 1.3908, while the Pound and Australian Dollar both slipped 2%. The Yen touched another record high against the dollar, before settling down .2% to at 76.23.
Economic Outlook
Investors are anxiously waiting for a deal regarding Greece’s debt. The market is looking for a 50% haircut on the debt.
Wednesday’s reports were upbeat, as new home sales rose, and durable goods orders jumped.
Thursday’s reports will include GDP, pending home sales, and weekly jobless claims.
Earnings are due for from Bristol-Myers, Aetna, P&G, Time Warner, AMD, Motorola, Baidu, and Electronic Arts.
Binary Options Trading analysis written by Bradley Welcher
Binary Options Analysis – Greek Debt Deal Triggers Global Equity Rally
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Equities
Asian markets jumped following news of a deal for a 50% haircut on Greece’s debt. The Nikkei gained 2% to 8927, the Kospi advanced 1.5%, and the ASX 200 rallied 2.5% hitting its highest close in 3 months. In China, the Hang Seng rose 3.3% to 19689, led by railways, and the Shanghai Composite edged up .3%.
European markets soared, led by banks which rocketed up 9%. The CAC40 jumped 6.3%, the DAX jumped 5.4%, and the FTSE rallied 2.9%. In France, the 3 leading banks, Credit Agricole, Societe Generale and BNP Pariba,s all posted gains greater than 20%.
The upbeat sentiment continued in the US, sending the indexes sharply higher. The Dow gained 340 points to 11209, the Nasdaq climbed 3.3%, and the S&P 500 jumped 3.4%. The VIX tumbled 14.7% to 25.46 as investor anxiety eased. Here too, financials were the outsized gainers.
Stocks Soar on Greek Debt Deal
Dow Chemical shares jumped 8.2% even though the company reported earnings which were slightly shy of expectations. Visa gained 2.6% after reporting profits that were in line with estimates.
Treasuries and Commodities
Bonds tumbled as investors poured into riskier assets. 10 year notes fell 1 21/32 to yield 2.4% and 30-year notes sank 4 21/32 to yield 3.46%.
A $29 billion auction of 7-year notes had a high yield of 1.791 percent and a weak bid-to-cover ratio of 2.59.
Commodities rallied across the board. In energy, crude oil soared 4.1% to 93.91, gasoline advanced 3.3% to 2.7391 and natural gas edged up .4%.
Copper once again led metals higher, rocketing 6.1% higher to close at 3.703. Silver jumped 5.4% to 35.105, and gold gained 1.3% to 1746.30.
Currencies
The dollar plunged as the market return to risk-on mode. The Australian Dollar was the biggest gainer, soaring 3.1% to 1.0722. The Swiss Franc rallied 2.4% to 1.1628, and the Euro advanced 2.1% to 1.4188. The Yen once again touched a new record high, tagging 75.67, before pulling back to 75.97, up .4%. The Canadian Dollar broke back through the parity level, climbing 1.4% to .9911.
Economic Outlook
GDP rose at an annual rate of 2.5%, slightly better than forecast, and a marked improvement from last quarter’s 1.3% gain.
Weekly jobless claims came in at 402K, slightly better than last week, but a bit weaker than forecast. Pending home sales unexpectedly declined by 4.6%, a large increase from last month’s 1.2% drop.
Friday’s reports will include personal income, personal spending, consumer sentiment, and the employment cost index.
Earnings are scheduled for Arch Coal, Cablevision, Chevron, Cigna, Merck and Whirlpool.
Binary Options Trading analysis written by Bradley Welcher
Binary Options Report (Oct. 17- Oct. 21)
To read the Weekly fundamental analysis click here
Markets
Markets closed out a volatile week quietly. They ended upregistering modest gains as part of what is shaping up to be the equity market’s best month ever.
After trading up and down through most of the session, the major averages closed slightly higher, with the Dow registering a 3.4 percent gain that has helped boost the market about 12 percent for October. It was the fifth consecutive weekly gain for the DJIA.
DJIA CHART
FOREX
The Canadian Dollar remains correlated to broad market sentiment trends. This is with price showing a firm correlation to the S&P 500. This, also, speaks directly to Canada’s own performance which naturally sets the trajectory for its monetary policy and thereby the Canadian Dollar considering the country is highly sensitive to the worldwide business cycle both as a commodity producer and as a key exporter to the globe’s largest economy, the United States.
With this in mind, it is not surprising that the Canadian Dollar surged to the highest in a month last week as investors cheered on the moderation in all three of the major headwinds that had been weighing on economic growth expectations. The threat of an immediate meltdown on the Euro Zone periphery was reduced after an EU leaders’ summit in Brussels concluded with policymakers throwing more money at the problem. Q3 US GDP figures showed growth accelerated to the strongest pace in a year. This ended up warding off double dip recession fears, for now. Finally, official commentary from China began to carry subtle hints that monetary tightening was done and credit may even be loosened in pockets of the economy. This ended up stoking hopes that a hard landing in the world’s second-largest economy will not happen.
While this paints a rosy picture of the Loonie’s prospects, not all is well. Last week, the Bank of Canada took a decisive turn toward the dovish side of the spectrum. They ended up lowering its GDP outlook and conspicuously removing language referencing the unwinding of monetary stimulus in its policy statement. The monthly GDP update to be released on Monday is forecast to show the annual growth rate slowed to 2.2 percent in August, a hair above the 16-month low of 2.1 percent recorded in June, while employment data due Friday is expected to yield a weak 15,000 jobs increase in October. This is reinforcing priced in bets that rates will be at a standstill for the coming year.
This makes for a cloudy outlook for the Canadian currency in the week ahead, with much likely to depend on the deluge of US scheduled event risk in the economic calendar.
USDCAD Chart
COMMODITIES
Oil dropped Friday as investors acknowledged that Europe needs to tighten its belt for years in order to work through a credit crisis. Also, factory production stalled in Japan.
Crude fell 64 cents to end the day at $93.32 per barrel in New York. Brent crude, which is used to price foreign oil, lost $2.17 to finish at $109.91.
Gold closed a bit flat as investors took profits. Gold for December delivery closed down 50 cents to settle at $1,747.20 at the Comex division of the New York Mercantile Exchange.
CRUDE OIL Chart
EQUTIES
Troubles continued to add up for MF Global. Now with a Moody’s downgrade the latest issue to confront the battered brokerage run by former New Jersey Gov. Jon Corzine. Shares tumbled more than 26 percent after falling nearly 16 percent Thursday.
Samsung has overtaken Apple in terms of smartphone sales and expects the fourth quarter to be even stronger. Wynn Resorts lead the winners on the NASDAQ even as analysts scaled back earlier projections for the hotel and casino giant’s earnings potential.
Binary Options Trading analysis written by David Frank
Fundamental Analysis and the Week Ahead
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THE WEEK AHEAD
MONDAY, OCT. 31
Chicago PMI Oct. 58.2% 60.4%
Texas manufacturing Oct. – -14.4
TUESDAY, NOV. 1
ISM Oct. 52.2% 51.6%
Construction spending Sept. -0.1% 1.4%
Motor vehicle sales Oct. 13.3 mln 13.0 mln
WEDNESDAY, NOV. 2
ADP employment Oct. – 91,000
FOMC announcement – –
Bernanke press conference – –
THURSDAY, NOV. 3
Jobless claims 10-29 401,000 402,000
ISM services Oct. 53.7% 53.0%
Factory orders Sept. -0.1% 2.1%
FRIDAY, NOV. 4
Nonfarm payrolls Oct. 93,000 103,000
Unemployment rate Oct. 9.1% 9.1%
Average hourly earnings Oct. 0.2% 0.2%
Binary Options Trading analysis written by David Frank
Daily Analysis – Market Rests after Thursday’s Rally
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Equities
Asian markets extended their gains on Friday, as investors cheered progress in the Euro debt crisis. The Nikkei rallied 1.4% to 9050, althoughOlympusshares continued to drop as the FBI announced it was investigating the firm’s finances. InKorea, the Kospi rose .4%, lifted by Samsung Electronics which announced it has surpassed Apple to become the number one smart phone maker. InChina, the Hang Seng rallied 1.7% to 20019, and the Shanghai Composite climbed 1.6%.
InEurope, the major indexes closed mixed, as the DAX inched up .1%, while the CAC40 lost .6% and the FTSE eased .2%. Despite the progress in the debt negotiations, yields at an auction of 10-year Italian bonds jumped past 6%, as investors remain anxious over the region’s future.
US markets closed little changed, with the Dow closing up 23 points to 12231, while the Nasdaq closed down fractionally.
Market Pauses After Recent Rally
MF Global shares plunged 16%, extending their losses, after Moody’s downgraded the firm.
HP cancelled plans to spin off its pc business, sending shares up 3.5%.
Treasuries and Commodities
Bonds advanced, recovering slightly from Thursday’s steep losses. 10-year notes rose 22/32 to yield 2.32%, and 30-year notes climbed 1 18/32 to yield 3.38%.
Natural gas jumped 4.2% to 3.923, while gasoline fell 2.2% to 2.6822, and oil declined .7% to 93.32. Gold settled flat, while silver rose .5% to 35.288, and copper closed up .4% to 3.706.
Currencies
The major currencies consolidated after rallying sharply against the Dollar on Thursday. The Euro slipped .2% to 1.4148, the Pound rose .2% to 1.6132, and the Yen gained .2% to 75.83. The Australian Dollar and Canadian Dollar both declined fractionally, while the Swiss Franc eased .4% to 1.1584.
Economic Outlook
Personal spending jumped by .6%, in line with expectations while personal income rose a mere .1%, less than the .4% forecast. Consumer confidence rose to 60.9 from 57.5, better that expected.
Friday’s reports will include the Dallas Fed manufacturing survey, and Chicago PMI.
Earnings are scheduled for Allstate, Berkshire Hathaway, Loews, and Sotheby’s.
Binary Options Trading analysis written by Bradley Welcher
Binary Option Analysis – Markets Slide as Investors Reexamine Last Week’s Gains
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Equities
The Bank of Japan intervened in the currency markets, in an attempt to weaken the yen to aid exporters. The move initially pushed Japanese stocks higher, but the Nikkei closed down .7% as sellers took advantage of the bounce. The Kospi slid 1.1%, the ASX 200 declined 1.3%, and the Shanghai Composite eased .2%. The Hang Seng closed down .8%, but ended the month up an impressive 12.8%.
A fierce wave of selling hit European markets, as investors focused onItaly’s debt. The DAX and CAC40 both skidded 3.2%, while the FTSE shed 2.8%. Italy’s MIB index tumbled 3.8%, and European banking shares slumped 6.6%, as yields on Italy’s 10-year note remained above 6%, despite last weeks European Summit.
Selling continued across theAtlantic, as the Dow tumbled 276 points to 11955. The Nasdaq shed 1.9%, and the S&P 500 closed down 2.5%, while the VIX jumped more than 10%.
Stocks Erase some of Last Week's Gains
MF Global Finance filed for bankruptcy protection, adding to the pressure on financials.
Humana shares rallied 5.7% after beating earnings forecast and lifting its outlook.
Treasuries and Commodities
Bonds soared as investors questioned last weeks progress on the European debt front. 10-year notes spiked 1 25/32 to yield 2.11%, and 30-year notes rocketed up 4 30/32 to yield 3.13%.
Commodities traded lower almost universally. In energy, crude oil slipped .74 to 92.58, and gasoline dropped 1.9% to 2.596. Natural gas bucked the losses, inching up .1% to 3.928.
Gold fell 1.8% to 1716.20, silver dropped 2.8% to 34.30, and copper fell 2.7% to 3.605.
Agricultural futures slumped universally. Among the losers, coffee closed down 3.5%, and wheat slumped 2.5%.
Currencies
The Yen tumbled 3.1% to 78.18 and hit 79.49, after the Bank of Japan (BOJ) intervened in the currency markets. In August, a similar move by the BOJ was quickly undermined by sellers, so it remains to be seen if this effort will succeed.
The Euro dropped 2.1% to 1.3856, and the Australian Dollar fell 1.6% to 1.0536 as investors cashed in on last week’s sharp gains. The Pound closed down a modest .3% to 1.6084, and the Canadian Dollar fell .9% to 1.0001.
Economic Outlook
The Chicago PMI report showed a slowdown in business activity, as the index fell to 58.4 from 60.4.
Tuesday’s reports will include ISM manufacturing index, construction spending, and monthly auto sales figures.
Earnings are due from Pfizer, Credit Suisse, and Dollar Thrifty.
Binary Options Trading analysis written by Bradley Welcher
Binary Options Analysis – Call for Greek Referendum Sends Markets in Tailspin
To read the Weekly technical report click here
To read the Weekly fundamental analysis click here
Equities
Global markets continued to fall on Tuesday, as call for a referendum by Greek’s Prime Minister threw into question that state of the country’s bailout deal. In Asia, the Nikkei dropped 1.7% to 8835, and the ASX 200 fell 1.5%, despite an interest rate cut byAustralia’s central bank. In greater China, the Hang Seng sank 2.5%, while the Shanghai Composite inched up .1%. InSouth Korea, the Kospi overcame morning weakness to close flat, as gains in automakers offset losses in financials.
European markets plunged, with the CAC40 closing down 5.4%, the DAX dropping 5%, and the FTSE shedding 2.2%. The possibility that a referendum would reject the latest bailout weighed especially hard on financials, sending banks and insurers down more than 6%.
In the US, the Dow dropped 297 points to 11658, the Nasdaq fell 2.9%, and the S&P 500 lost 2.8%. The VIX jumped more than 15% to 34.77, and nearly reached 38 earlier in the day.
Volatile Swings in the VIX over the Past Week
GM tumbled 9.75% and Ford sank 5.1% despite reporting sales growth in October.
BB&T said it will purchase BankAtlantic for $3.3 billion, sending BankAtlantic shares up an astonishing 111%.
Treasuries and Commodities
Bonds extended their gains as fear gripped the market. 10-year notes climbed 1 3.32 to yield 1.99%, and 30-year notes rallied 2 24/32 to yield 3.00%.
Commodities slumped in a flight to safety. In energy, natural gas dropped 4.1% to 3.772, and crude oil fell 1.7% to 91.62.
Copper led metals lower, sinking 3.5% to 3.5065. Silver fell 3% to 33.32, and gold eased .2% to 1721.
Currencies
The shift to “risk-off” sent the Dollar sharply higher. The Canadian Dollar and Australian Dollar both suffered 2 % losses, dropping to 1.0197 and 1.0331 respectively. The Euro slumped 1.1% to 1.3697, and the Pound skidded .8% to 1.5948. The Yen settled down .1% at 78.33, a day after the BOJ intervened in the currency markets in an attempt to weaken the Yen.
Economic Outlook
Tuesday’s economic data was mostly negative. The ISM’s manufacturing report was weaker than expecting, unexpectedly declining from last month. Construction spending rose by just .2%, significantly lower than last month’s 1.6% gain, and slightly below forecasts. On the upside, monthly auto sales were 200K more than expected.
Wednesday’s reports will include the ADP employment report, the Challenger job-cut report, and the Fed will release a statement in the afternoon, at the close of the FOMC meeting.
Earnings are due from Clorox, Mastercard, Sony, Qualcomm, and Whole Foods.
Binary Options Trading analysis written by Bradley Welcher
Binary Option Analysis – Upbeat US Employment Data Lifts Western Markets
To read the Weekly technical report click here
To read the Weekly fundamental analysis click here
Equities
Asian market closed mixed on Wednesday, as concerns over the European debt situation continued to weigh on investors. The Nikkei skidded 2.2%, as Sony shares dropped 3.6% ahead of earnings. Korea’s Kospi slipped .6%, and the ASX 200 dropped 1.1%. China’s markets rallied, with the Shanghai Composite climbing 1.4%, and the Hang Seng rallying 1.9%.
European stocks rallied, aided by goodUSdata and the Fed’s remarks that it was prepared to take action to keep the economy growing. The DAX jumped 2.3%, the CAC40 climbed 1.4% and the FTSE advanced 1.2%.
In the US, the Dow rallied 178 points to 11836, the S&P 500 gained 1.6% and the Nasdaq rose 1.3%. The Fed left interest rates unchanged, and cut its growth forecast to 1.6% for the coming year.
Dow Gains 178 Points
Treasuries and Commodities
US bonds closed mixed, as 10-year notes ticked up 1/32 to yield 1.99%, and 30-year notes slipped 9/32 to yield 3.01%. German bonds skidded, as 10-year notes fell .54, and 30-year notes dropped 1.60.
Crude oil rose .7% to 92.80, while natural gas slipped .4% to 3.765.
Metals advanced, led by silver, which rallied 4.7% to 34.265. Copper climbed 2.6%, and gold gained 1.5% to 1738.20.
Currencies
The Dollar fell against other major currencies, as the market stabilized after Tuesday’s plunge. The Euro rose .5% to 1.3746 , and the Swiss Franc gained .6%, The Yen gained .4% to 78.07, the Australian Dollar rose .3% to 1.0341, and the Pound inched up .1% to 1.5952.
Economic Outlook
Wednesday’s ADP employment report showed a gain of 110K jobs last month, better than forecast, lifting hopes for Friday’s non-farm payroll report.
Thursday’s economic data will include weekly jobless claims, productivity, factory orders, ISM non-manufacturing index, and chain-store sales.
Earnings are due from AIG, CBS, and Unilever.
Binary Options Trading analysis written by Bradley Welcher