The economy
Nothing has changed and investors should continue to take profits. This stock market currently cannot determine which direction it wants to go. Even though the current ALERT is still bullish we suggested investors look at trading index put options against the stock market declining. If you took advantage of our options recommendation you should have made a profit from your put options trade.
If your position is still open next weeks market should give you an opportunity to have a profitable trade at some point.
If you don't understand how to trade options purchase the eBook, "How to Make Money Using StockMarket-Direction.com ALERTS!!!" and learn how a proper options strategy can work for you.
Investors focused on commentary from central banks, which wasn't surprising, considering the Federal Reserve, Bank of Japan, Bank of England, and Swiss National Bank all held their policy meetings. All four stood pat, keeping their key interest rates unchanged. However, all four cited a litany of growth concerns that fueled strong demand for sovereign debt and a somewhat surprising aversion to stocks. Surprising, because dovish commentary from several major central banks has been known to elicit a strong bullish response in recent years.
To little surprise, a potential "Brexit" was cited frequently ahead of the June 23 referendum. The long-running storyline took a tragic turn after Labour MP Helen "Jo" Cox was murdered on Thursday. This prompted a two-day suspension of campaigning by both sides and the pound rallied back to last week's levels after hitting a five-week low early on Thursday.
Sovereign debt was in strong demand into Thursday morning, but some selling developed into the weekend. Germany's 10-yr yield dropped to a record low of -0.038%, ending the week at 0.018%, while the Swiss 30-yr yield marked a record low at -0.004%, settling at 0.034% for the week. The global risk aversion was also visible in the foreign exchange market where the dollar/yen pair slid to 104.20, registering its lowest weekly close since August 2014.
On Friday, St. Louis Fed President and voting FOMC member James Bullard said that he believes only one rate hike will be warranted through 2018. The born-again dove had voiced support for four rate hikes as recently as mid-January.
In sum, the fed funds futures market started to get comfortable with the theory that there will be no hikes in 2016, pricing in just a 45.0% chance of a rate hike in December. The probability of a rate hike in July receded to 10.0% from 23.0% at the end of last week.
$tockMarketDirection proprietary model is currently sign-up and subscribe. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, write us. Share with a friend.
By the numbers the weekly closing index numbers compared
to the initial sign-up and subscribe recommendation closing
numbers:
Stock Market Closing Numbers
|
|||
compared to Recommendation Numbers
|
|||
Variance
|
|||
Register
at: http://www.stockmarket-direction.com/
No comments:
Post a Comment