Market Commentary-December 20

Well, not just did the Fed hike interest rates as generally anticipated, they retained language in the announcement that “further gradual increases” will be called for where many people assumed they might take that out. Therefore, this has been not much of a dovish hike as many had been ready for and indeed looking forward to.

Equities saw typical post-Fed decision volatility. The stock markets found the rally again denied, in spite of trade more than 350 points higher. The Seven hundred point swing materialized following a Fed Chair Powell remarks that next year will find their balance sheet reduced. 

The flip created new lows for 2018, however more interestingly, still only spots a small rise in the VIX index. Nevertheless, the market did not recognize that rate increases which can be helpful for stocks.

Fed chair Powell spoke with a virtually unrevised plan and that their particular outlook continues to be on track shocked many since many had expected Fed to change the course. The US Dollar (DXY) index held its bid, however, has been most likely much more evident versus Sterling.

The lengthy end of the yield curve has been exactly where it had been observed most, and a ten basis points decline in 30-year helped flatten the curve much more. 2-year/10-year are currently into ten basis points and appear to be on course scaring many as it goes on.

In Asia-Pacific stock markets, trading completed a mixed overall performance in the course of Wednesday session. Shanghai closed the session lower a little over 1%, and it was heavily weighed from the energy industry, while H.K's Hang Seng Index jumped higher by 0.2%. The Nikkei 225 Index fall by 0.6% on the day.

In the meantime, the leading European stock markets all gone up on the day. The German DAX Index went up by  0.2%, the UK's FTSE100 Index leaped by 1%; the French CAC40 Index rose by 0.5%. The Euro Dollar found support following an Italian budget arrangement together with a gain of 0.5%, currently taking it to a 1.14 handle.

A reaction to the Fed statement will continue to influence trading today together with leading economic data reports, weekly jobless numbers, and Philadelphia-area manufacturing activities.

Bitcoin Market

On our Dec 18 chart update, we pointed out that Bitcoin moved to our Mean Resistance $3534 following takeout the Yearly Low $3212 on Dec 14.

The price action within the last couple of days has given us optimism that Bitcoin crypto prices will generate a Dead-Cat-Bounce move on a short-term basis.

Bulls have kept them a foot-hold while they enthusiastically bought any sort of dip which brought the marketplace to close $3000 level. As a consequence, the crypto-coin rallied after establishing a fresh Yearly Low of $3129 on December 15.

Having said that, now is in no way the time get fired up due to the fact Bitcoin isn't out of the woods as of yet. A short-term bottom level might be in; however, it does not suggest that the Bitcoin market will fire up a bull run.

To the contrary, we'll keep an eye on Bitcoin move to a projected price point - Outer Dip Coin $2860 before it can reverse its trend.


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