Trading Week Ended November 10, 2017 


Why trading equity market has risen so drastically ever since the last economic and financial crisis? You will find numerous elements involved. However, the main reason is the undeniable fact that the Fed (Federal Reserve) has long been generating trillions and trillions of dollars out of nothing (read thin air) and it has been adding all of that hot cash into the stock markets. 

However now the Fed is beginning to reverse path, and this has to be the most important sell trading signal for stock markets in modern-day American history. Without having the artificial help support of the Fed along with other global central banks, there is absolutely no way possible that this vastly pumped asset prices that we see at this time will be able to continue. 

Throughout the last financial meltdown, the Fed began to expand our money supply drastically, and so they continued getting this done right through the end of October 2017. Sadly for equity traders, the Fed has recently chosen to alter the course, and this means this process that has produced these absurd stock prices which are starting out to go reversely.

Can any sane person out there think that the vastly swollen balance sheet which the Fed has built up can be unwound without having a massively damaging effect on the stock market? Even scarier is the fact that key central banks across the world seem to be operating in a synchronized fashion.

With any luck, there's nothing dubious taking place. However, I do believe it is really odd that most of the leading worldwide central banks tend to be shifting toward tightening up simultaneously. Nonetheless, in my opinion, it's all a scheming program which will, in the foreseeable future, eliminate all cash transactions from the global banking systems! What do you think?

US Trading Market

The trading stock market jumped to an excellent beginning this week, shooting new record highs on Monday as well as Wednesday, however, retraced their advances in the latter half a push which was nominally influenced by the release of the US Senate's tax reform bill.

Instead of more likely, nonetheless, this week's damage evolved as the result of specific profit-taking after a mostly continuous two-month rally. The financial segment pushed back this week's, and that is appropriate taking into consideration the group played out a leading part in the market's the latest bullish movement.

The financial segment leaped 11.4% from September 8 to November 3, as the main Index S&P500 added 5.1%. The Dow Jones Industrial Average (DJIA) components such Goldman Sachs and JP Morgan Chase shed 1.7% and 3.9% this week, respectively. Industrial sector shares also had trouble, together with transports exhibiting specific weakness. The DJTA (Dow Jones Transportation Average) slipped 2.6%. 

The DJIA started the week at 23516.3 and ended the week with 23422.2 for the total of minus 94 or 0.4%. The NASDAQ began at 6764.4 and stopped 6759.9 that is minus 13.5 or 0.2%. The S&P500 started at 2587.8 and finished at 2582.3: minus 5.5 or 0.2%. Small-cap Russell2000 began at 1494.9 completed at 1475.3 with minus 19.6 or 1.3%.

Eurozone and Asia-Pacific Market

The US media reports a plausible hold off in Tax Reforms definitely struck an already pretty nervous Eurozone stock market towards the second half of the week. With additional, ongoing UK BREXIT dialogue in a stalemate, the financial markets consumed this news along with a bundled case of economic and earnings numbers as the caution signal.

The key Eurozone stock markets also moved to the downside on Friday. the German DAX30 Index fell by 0.4%, the French CAC40 Index dropped 0.5%, and the UK's FTSE100 Index declined by 0.7%. 

The trading market in Asia-Pacific ended mainly lower following a lowers as well as jack up volatility in the US markets on Friday. HK's Hang Seng Index edged down by 0.1%, while Japan's Nikkei225 Index slid by 0.8%. The mainland China's Shanghai Composite Index bucked the downtrend. South Korean market and in Aussie land securities declined as well.

Cryptocurrency Market

BTC (Bitcoin) continuously is losing ground in comparison to altcoins and few other coins, although Friday’s sell-off in the most important crypto coin afflicted the remainder of the coin's segment with only BTC Cash rising higher, and also bridging the $800 price level the very first time since mid-summer in August.

The Bitcoin has fallen to $7000 price level and swiftly got near the short-term support of $6700 price once the decline quickened. The long-term view remains to be overbought for that crypto-currency following its latest stellar climb.

Commodity Market

Gold: I will continue to point out my personal favorable entry point in Gold at $1268, with the prices of precious metals continuous rise in the direction of what appears to be long-term resistance level at $1303. It has rebounded the way I have expected it would. However, it remains to be interesting at these ranges and could certainly be a near-term trading and investing preference in the event the equity market eventually pull back. The Gold spot price was $9.49 lower at $1,275.58 per ounce to close the week.

Crude Oil: Prices encountered a jump slightly over $57 per barrow to two-year highs well before the Saudi Arabia started purging that's right now igniting worries regarding crude oil production output in the kingdom and lack of stability in the region.

Within the last three months, crude oil prices commenced climbing following severe weather in United States of which decreased supply, mild increases in worldwide demand, an extension of the deal by OPEC (Organization of the Petroleum Exporting Countries) and Russia. To cut back on production as well as unrest in the Middle East, especially after the Iraqi Kurdistan independence referendum movement.

So, as the mass media maintains its focus on rising tensions involving the United States and North Korea, your total attention ought to be on the Middle East while keeping an eye on the Saudi Crown Prince Mohammed bin Salman (MBS). MBS has already been put in as pretty much as the de facto head of the nation.

The energy sector was lower for the week with West Texas Intermediate crude oil declining $0.4 to $56.7 per barrel, while wholesale petrol fuel was 1 cent lower at $1.8 per US gallon.

Currency Market

Dollar Index (DXY), a comparison of the US Dollar to six major world currencies was nearly 0.1% lower at 94.4. The Euro Dollar and the Great British Pound rose versus the US Dollar, while bond yields in the region moved higher, while the Japanese Yen gained ground on the increase in volatility which weighed on Japanese stock market.

What's Ahead for Next Trading Week

US next week's trading market trading market may be impacted by the latest economic data, with reports on retail sales, producer and consumer prices, housing starts and industrial production, which most likely to attract considerable attention.

On International front reports due out next week that deserve attention are: China's industrial production, lending statistics, and retail sales. In Aussie land employment change and consumer confidence. Japan will show a Q3 Gross Domestic Product and Industrial Production numbers. India will report trade balance, Consumer Price Index, and Producer Price Index. 

In old continent (Europe) Q3 Gross Domestic Product, industrial production, Consumer Price Index along with German investor confidence. The UK will show off Consumer Price Index and Producer Price Index, retail sales and employment data.


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