Trading Week Ended December 15, 2017 


Trading: The Fed (Federal Reserve) hiked interest rates as anticipated Wednesday, even though the Fed's monetary assertion has been a little more hawkish than anticipated, the market’s response did not echo the much-anticipated go. The more severe than estimated Consumer Price Index posting did, however, highlight the low-inflation story assessed on the latest robust US Dollar.

Again, the Trump tax overhaul was at the forefront of all market activities; we saw fresh contract high levels on main indices. The tax plan appears to be all but completed, and the excitement can be seen. Whether or not this may lead to any indications of inflation is one thing. However, that's not getting priced into the bond marketplace. Mainstream pundits still prepared to talk the program down, however, the fact is in the Wall Street game and also the investment capital flow into America.

US Trading Market

Trading on Wall Street soared to brand-new record levels this week as traders and investors absorbed policy directives from many of the international most powerful central banks and also became more and more positive about the Republican's likelihood of passing its offered tax revamping plan. The NASDAQ leaped 1.4%, while the Dow Jones jumped 1.3%, and the S&P500 put in 0.9%. The three leading indices wrapped up Friday's trading session at new record highs.

Furthermore, the Federal Reserve's so-called "dot plot" shown that the average FOMC (Federal Open Market Committee) fellow member nevertheless expects two to three interest rate hikes in the upcoming year as well as a couple in 2019. Both equally had been unrevised from the forecasts launched in September 2017, despite the fact that Federal Reserve acknowledged that over-all inflation and also core inflation currently have declined this current year and are staying under 2.0%.

The Treasuries rose in a curve-flattening trading on Wednesday following a rate increase move. The two year and ten years spread finished the week with fifty-two basis points, and that is six basis points under previous week's ending price level.

European Market

European Central Bank chief supper Mario Draghi’s remarks had been a lot less than useful for the retail market on Friday, along with considerable stores reductions in sales, it had been no real surprise that this had been the sector which leads equity markets lower. The financials sector was also hefty following any signal of a near-term move in interest rates and were well off and definitely on the back-burner.

Traders and investors did notice a jump upon reports of America's tax reforms, then again it looked as the story was more than likely solely for the benefit of Wall Street. As a result, Eurozone markets went lower yet again. UK’s FTSE100 did nicely on Friday trading with 0.6% gain; however, when taking into consideration the British Pound overall performance, it is not so good.

The Pound dropped 0.9% following reports that the UK Prime Minister, Theresa May, claimed she's on par to produce BREXIT. Speculation that possible trade deals will also be sure helped sentiment for the rebellious UK government. Be sure the weekend media is going to be full of BREXIT as always. However, this week could hit a very optimistic tone in the event reasonable external deals tend to be rumored.   

Elsewhere the date concerning the next election inside the on a financial basis and politically struggling Italy. This continues to be fixed on March 4th, 2018, and the early date triggered many turmoils within the countries assets, which pulled the Euro Stoxx50 Index lower this Wednesday, along with the DAX30 and the other leading indices.

Asia-Pacific Market 

Asia-Pacific markets moved having prices for main indexes all ending close to minus 0.5% lower for the trading day on Friday. Volumes have been soft at the same time lacking conviction, in addition to year-end book-squaring, had been the central talk matters.

The US Dollar drop didn't help exporters for the Nikkei Index. However, that continues to be a problem for several days this week. But, later in the American trading session, we have observed a turnaround of these lowers with the DXY Index clawing back previous losses, and we were happy trading 112’s handle buying 112.135 versus the Yen along with taking profit 112.700.

Asia-Pacific stocks had started out weak and managed to get back into the positive zone at one point most likely because of the result of outstanding Tankan numbers. But, that has been lost once again at the cash closing. Late in Wall Street trading session, we spotted futures market back up, although let's wait and watch just how cash opens on Monday session. The HK's Hang Seng suffered the most with just over 1% loss. This has been due mostly to property along with financials sector trading heavy.

Metals And Other Markets 

Gold has been getting whacked by the bullion banks over the COMEX exchange, while US stocks happen to be increasing, the VIX (The CBOE Volatility Index) continues to be sliding with Bitcoin continues to be on the rise. Which makes sense due to the fact Gold assets are treated negatively in relevance to soaring stock prices.

I expect that Gold will hang on to be above $1200 level before it turns around and moves on again to higher levels. Should this be the very best, the big bullion banks can do at the COMEX exchange, by promising to provide physical Gold which they do not have, and which does not exist, then so be it. I do not anticipate the latest decline in the prices of Gold to remain at this level much longer with regards to time as well as price. 

The Silver marketplace has once again captured traders and investors’ interest as the prices are approaching area not identified since the latter part of 2008. 2017 started out at a low level for Silver, and it looks it'll finish the season that way as well, which means traders and investors who purchased at the start of the year have not suffered nor earned much. This, however, does not say, that the prices have not changed during this year. Following the slow start at the beginning, Silver reasonably quickly added about 18% to its price of $17.50 per US ounce. 

With regards to fundamentals within the Silver marketplace, circumstances look somewhat complicated in 2018. Just like in the Gold market many forces on COMEX exchange are yanking the Silver in both directions and preventing the price of white metal moving forward.

Meanwhile, the Gold spot price changed $2.8 higher to $1,256 per US ounce on Friday, and the US Dollar Index, a comparison of the US Dollar to 6 leading global fiat currencies was 0.5% better at 93.94. Elsewhere, WTI (West Texas Intermediate) crude oil improved by $0.26 to $57.30 per barrel, and the wholesale petrol dropped $0.02 to $1.65 per US Gallon. For the week ending the trading session. 

Cryptocurrency Market

Bitcoin cryptocurrency was at a whole new all-time high on Friday, even though the push of Friday’s move is significantly below from that which we observed fairly recently, and the cryptocurrency only was able to get to a limited record high level. Bitcoin is currently valued at $300 billion, and it continues to trade right within the short-term trend line, a pattern which demonstrates an apparent upward momentum are always possible.

However, as each of the major's cryptos are overbought coming from a long-term standpoint, My advise to you is to wait for a much better buying opportunity before increasing your holdings. Main support level is found near $13,500, with a further stronger level at $11,950.

Bitcoin futures started beginning of this week over the CBOE exchange, and trading on the CME exchange begins this Sunday (Dec 17). There's been virtually no practical approach to short Bitcoin until now. The brand new futures contract will provide sellers into the market. Bitcoin is undoubtedly an enormous bubble which has siphoned appeal from the Gold assets. Bitcoin cryptocurrency has absolutely no intrinsic value, that is ideal for the present speculative bubble approach.

And then let’s not forget the Federal Reserve System shall we

Can not wait for Aurora, Illinois who once enters into action this Sunday (Dec 17) when Chicago Mercantile Exchange Bitcoin futures begin to trade, and the volumes will be boosted by 30-fold or so. Also let's not forget, that NY Federal Reserve not long ago has moved their trading desk to Aurora; what a coincidence-bet you a Dollar their quantity discount acquired at Merc for large volume trades will be handed to them as well. Is this a great country or what?

And finally, keep in mind that the FBI confesses to owning 2.5% of Bitcoin currency! Federal Bitcoin Institute - FBI has got their profit margins practically guaranteed.” Many of us remember Alan Greenspan inferring that Gold was not money, several years ago.

What's Ahead for Next Week 

The upcoming week will mark the final week of the trading market session ahead of the Christmas holiday, and the economic calendar definitely will provide much more presents than coal. A fully-loaded sleigh will provide the final December University of Michigan Consumer Sentiment Index, the Leading Index, the last revision number of Q3 GDP (Gross Domestic Products). And then personal income and spending, durable goods orders, NAHB Housing Market Index, building permits existing home sales, and housing starts, and new home sales.

On international reports due out next week will include the Bank of Japan's monetary policy decision and Japan trade balance. China will post numbers on property prices. Europe consumer price inflation print with the UK consumer confidence and final read on Q3 Gross Domestic Products, concluding with German business confidence.


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