Market Commentary February 13

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

Market on Tuesday pushed to be a positive trading day following some positive headlines coming out Monday night session. Congressional representatives struck a tentative deal late Monday to avoid an another costly US Governmental gridlock before of Friday’s deadline. 

The intended agreement provides $1.4 Billion to Southern border security, including an additional 55 miles of border fencing: although there is no explicit support for a long-sought border wall. Any final arrangement requires consent from the President, so we will see how this plays out very soon.

So what that means is, for the more realistic long and intermediate term, tariff talks with China, will resume after topmost American negotiators flew to the Chinese capital. Still, no clear outcome as of yet, although most think there is just no way a whole deal can be structured prior to the March 1st deadline. 

Meantime the DJI market jumped over 400 points on Monday before closing up plus 373 or Plus 1.49%, while the S&P500 rose 1.29% or 35 points. The Russell 2000 closed up just over 19 points closing, plus 1.27%, the Nasdaq 100 saw a positive percentage increase of 1.46% closing, with plus 107 points gain.

Other Market(s)

A heavenly market day all-around in Asia-Pacific, however, the Japanese markets held the majority of the region’s gains. The Nikkei index exploded up 2.61% yesterday - performing catch up as the market was closed on Monday. The Yen currency moved up slightly higher over 110.50.

In mainland China, the core Shanghai index rose by 0.7% on improved tariff talks. With the Greenback cooling, the Chinese Renminbi declined. The tariffs negotiations enrolled in their second day as American representatives flew into Beijing yesterday. America set a deadline of March 1st looks to be nearing at a rapid pace. 

Some conclude a deal must be resolved with both President Trump and general secretary Jinping present. But, last week Trump emphasized he would not be making the journey to see general secretary Jinping this month.

An excellent market session for Eurozone stocks. With all main stock indices climbing yesterday. The U.K. FTSE 100 inched up by 0.1%. Questions were put in place as to when an EU extension of Article 50 will be expected. At this time, it looks no development has been done.

The German DAX30 rose 1.01%, although recent figures have shown that the German economy nearly missed a recession. The German auto industry, in particular, is beginning to suffer. Economists predict up to 15,000 jobs could be dropped due to Brexit deal, comparing to 1% of the total auto sector employment. 

The U.K., the automobile manufacturing industry, has endured a slowdown recently with capital investments yielding 9% over the Brexit difficulty and vehicle production sinking to a five year low. The Italian MIB index and French CAC40 rose 1.12%, and 0.84% respectively.

With the US Dollar cooling off and ending its eight consecutive positive trading session, decreased yesterday by minus 0.36% to 96.71 opposed to 97.05 in the previous trading day. Euro Dollar was one of the vast gainers yesterday winning 0.45% against the Greenback while British Pound advanced 0.26%, although, still under the 1.3 strategic level. 

Gold climbed $2.45 to $1310.45 US Dollar per troy ounce, whereas Silver metal slid slightly. US oil up 1.56%, on the announcement emanating Tuesday, was that Saudi's Aramco company has plans to increase business exploration into overseas - natural gas and crude oil.

Cryptocurrency

The crypto market segment has been consolidating since last Friday’s Litecoin currency leading the surge, and although utmost of the main crypto coins is holding on to the size of their gains, the follow through movement has been lacking the momentum.  

The Bitcoin currency rallied temporarily above the $3682 resistance level which was in the utmost the center of attention for few weeks in January of 2019, but it failed to extend its rally during the failed Monday's movement, and the lack of bullish push is a negative indication for the whole crypto segment. 

The crypto coin stays on a transparent medium and long-term sell signal per our Trade Selector Signal trend model, and although the short-term buying is also intact, traders and investors should only enter a minimal, speculative coin position here, since the bearish medium to long-term trend still being apparent. 


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