Market Commentary May 18, 2019

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

On the global market landscape majority indices and stocks slipped on Friday over stories that the America and China trade war deal has come to the screeching halt, as if that was not obvious already, with the most recent tariff hikes amidst both countries and open-ended concerns with Huawei Technologies. 

The Chinese media have employed words such as “little tricks” and “bullying” to call out the American tactics over against the negotiations. But, with regards to the tariffs issue, the countries which have been profiting are traders from around the South East Asia region who operate as middlemen between the two countries in order to skirt the tariffs.

Wall Street showed wild trading swings throughout the market trading session yesterday before ending the Friday session inherently lower. The significant indices rallied from a first movement to the downside only to drag the prices sharply downward in the session closing hour.

After the session, the leading indices were all staunchly in red territory. The broader S&P 500 index sank 16.8 points or 0.6% to finish at 2,860 on the day. DJI dropped 99 points or 0.4% to conclude at 25,764. The Nasdaq 100 decayed 76.5 points or 1% to close at 7504, while the Russell 2000 index had the unfortunate day on a percentage basis, sliding 21.5 points or minus 1.38% to end the session at 1536.

As The Market Turns

Where is the beef market? Japan has terminated a trade limitation on U.S. beef which has been halted ever since 2005. The beef over thirty months old can presently be imported to the rising sun, while at the same time, Trump postponed tariffs on automobiles imports from Germany and Japan and gave negotiators six months to arrive with a much favorable deal.

Chinese coffee company, Luckin Coffee, a whom many views as a thriving adversary to Starbucks successfully raised $651M in an Initial Public Offering in America. The shares initially surged from $17 to $25 and finishing the Session on Friday slightly over $20 or 19.88%.

The Council of Old Continent (Europe) voted on Friday to enable Russia to persevere membership. The arguments introduced following the incorporation of the new territory of Crimea, although a meeting yesterday in Helsinki, Norway ended in favor of a declaration declaring that each member should be able to participate on an equal footing.  As expected Ukraine responded to anger, asserting this isn't diplomacy but surrender.

Other Vital Markets

Crude oil service stocks bestowed a strong movement to the downside over the progression of the yesterday trading session, pulling the Philadelphia Oil Service Index downward by 3.2%.

Gold went down $8.3 or 0.65% to close at $1277, and the Silver trimmed its price by $0.133 or 0.91% to finish the session at $14.4377 per once.

On the bond market scene, US Treasuries retreated following an opening dive yet continued to observe very modest trading energy. As a consequence, the yield on the 10-year note, which by the way runs in the opposite of its price, slid by 1.2 bp to 2.393% after cracking a low of 2.364%.

Bitcoin Market

Bitcoin dipped to $6600 level on all of the significant coin exchanges throughout the down move on Friday, however on a positive tone, it succeeded to stabilize above our Mean Sup $6900, nevertheless down by roughly 20% of its recent high level. 

The leading cryptocurrency drop triggered double-digit losses in every one of the prime crypto coins, although the overbought short-medium term force readings are pretty much all cleared thanks to the decline, TSS trend model remains on intermediate-term neutral signals in light of the furthermore bearish long-term mode, however, the rebound to our Key Res $8195 move is in works. 

As the blow-off toward the Key Res does not mean that we will happen the downside risk continue to be very high at this point. Therefore, even though a quick jump upwards could lead to a renewed short-term rally, as of now, investors, as well as traders, should stay aside from entering this market.


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