Trading Market Commentary June 15, 2017

Commentary

Introduction

Since the most recent discouraged inflation, as well as Retail Sales results, have disappointed analysts, many of them were anticipating a somewhat more vigilant perspective from the Fed. Apparently, that did not come about. However, long-term yields dropped to a seven-month low level, simply because the marketplace sees problems in the future.

One of the most impacted assets happens to be the US Dollar, US Treasuries, and gold, along with worldwide financial markets. Since then volatility accelerated in those markets while the market ingested the decision.

Markets

After the mixed overall performance affecting the earlier sessions, securities migrated mainly lower throughout trading session on Thursday. The main indexes renewed ground following a first move to the downside nonetheless remained within negative terrain.

The DowJones surrounded  14.66 points (0.1%) to 21,359.90, the S&P 500 dropped 5.46 points (0.2%) to 2,432.46, and  the NASDAQ decreased 29.39 points (0.5%) to 6,165.50

The NASDAQ started again mixed trading session after the Fed course of action thus far. Traders/investors continue to anticipate a test of the long-term trend-line to the 5600 level over the correction period, having a probable spike towards the crucial support area just below the 5500 level. The 5775 stage will be the main resistance at this time, together with below that the short-term downtrend continues to be unchanged.

The Pound (GBPUSD) was one of the better-performing currencies for the day following a BOE's (Bank of England) monetary meeting on Thursday that brought a rather unexpected vote which will eventually leave its current record low interest in one piece for an 11th month. The BOE voted 5 to 3 to maintain interest rates unchanged however that became a slimmer vote in contrast to what market had anticipated.

In markets throughout the Asia-Pacific went generally lower in the course of the trading session on Thursday. Nikkei225 Index fell by 0.3%, while HK's Hang Seng Index and ASX plunged by 1.2 percent respectively.

Euro markets dropped for a 2nd trading day, pulled lower by retailers and commodity manufacturers. Core Euro markets were fragile ahead of the Bank of England statement, to begin with. However, that undoubtedly did not help the slightest bit. The CAC40 Index decreased by 0.5%, the the DAX30 Index and the FTSE100 Index fallen by 0.9% and 0.7%, respectively.

Most commodities were struck quite hard by the US Dollar rally, along with gold and silver, crude oil, as well as the industrial sector which experienced losses for the day.

Cryptocurrencies  Delusion

Bitcoin was in fact right down to $2,050 yesterday. Just who talked about keeping an eye out for a bubble high? (See my article here) Possibly yet another drive to go higher, however, if you would like to make investments to slow-to-clear very quickly lost funds alternatives, have you thought about, AIR? 

The crypto a static correction carried on in earnest all day yesterday, as the essential crypto coins were all driving significantly lower once again, suffering from 30 plus percent losses. Bitcoin dropped as low as $2,050, while Ethereum fell $130 and settling at the bottom near $270. 

Beware Friday Quadruple Witching

Most of the action encompassing futures as well as options on quadruple witching trading days is centered on offsetting, terminating as well as rolling out contracts, in addition to arbitrage trades/investments, with the result becoming a high volume, especially in the final hour of the trading session.

Quadruple witching is the term for an expiration date which includes stock index futures, stock index options, single stock futures, as well as stock options. All four assets reach its expiry date together on the 3rd Friday of the month of March, June, September, and December. Whereas index options together with stock options contracts expire on the 3rd Friday of each month.


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