Category: Market Summary

Equities broke into the second week of September with gains which have not been seen for weeks. This past week the Dow Jones Industrials clocked in the largest gain, rising for a total of over 3%. Other US equities stayed positive, but did not fair as well with the S&P 500 rising 1.879% and the NASDAQ 100 moving 1.025% to the upside. Many believe that the pop in stocks was mainly brought upon by major indices entering oversold levels, which incurred from the August sell off. Out of the three major US equity indexes, the Dow Jones fell the hardest in August and took the longest to rebound. With this being said, all indexes appear to be on the same level after the Dow’s major rally this past week. Meanwhile, in Canada the TSX lagged this past week following major commodity market moving news. The TSX, which has a strong … Continue reading Recap: Week Ending September 13, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF Despite global equities falling throughout the month of August, the final week of summer proved to be positive for stocks. The strongest gains on the week were seen on the Nikkei where the 225 rallied over 3.146%. The rally in Japanese’s equities started off from a push lower in the Yen vs the US dollar. The Yen became weaker as the week went on as the Bank of Japan (BoJ) decided to keep interest rates low at 0.1%, attempting to continue to devalue their currency. European equities also rose on the week with both the German DAX index and London FTSE recovering from the previous week’s poor performance. Meanwhile on the TSX stocks saw their lowest volumes in over 2 months with the TSX Composite Index closing slightly positive on the week. Throughout the past week, … Continue reading Recap: Week Ending September 6, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF This past week global equity markets continued to sell off with the bulk of downside activity being seen in Europe, in particular Germany. As markets continue to move in sync the directional energy builds, pushing the market lower. The inverse correlation between US equities and the US Dollar index is strong with the index closing well into the green to mark a second week of gains. The US Treasury bond also holds a strong inverse relationship with US equities and is seen as the save haven when equities turn sour. The 30 year has fall substantially since March, however, in the past two week has gained momentum to the upside and has closed positive on both occasions. If this inverse correlation in the 30 year along the US Dollar Index continues, US markets could see much … Continue reading Recap: Week Ending August 30, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF After seeing some of the lowest volumes in the S&P 500 and NASDAQ 100, stocks were able to bounce off what has been a drift to the downside to say the least. Minus the Dow Jones Industrial Average, which closed in the red, the S&P, NASDAQ and Russell 2000 all closed positive on the week. Other major equity indices closed positive or near unchanged on the week. The Toronto Stock Exchange sold off early in the week, however, following a significant push in gold Friday, closed higher on the week. The push higher late in the week was also seen in light crude; however, the move was not significant enough to close positive on the week. Following weeks of consolidation around the 1.035 the CAD lost strength vs. the USD pushing USD/CAD higher to 1.04926 on … Continue reading Recap: Week Ending August 23, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF Throughout the week, global equity markets pushed lower, with both the Dow Jones and S&P 500 seeing their biggest drop in what appears to be months followed by a decline in the UK’s FTSE 100. As mentioned in last week’s edition of MarketWatch, if global markets continue to move in tandem, conviction will be seen to the downside, this was the case this past week. The market continues to be rocked by news and rumors out of Federal Reserve Open Market Committee, FOMC, about the potential end of Quantitative Easing, QE. When QE begins to slow down, as stated in last week, the markets could take a huge hit. Investors woke up to this opportunity following words from Richard Fisher, alternative member from Dallas, who continues to be negative about the future of QE and FED … Continue reading Recap: Week Ending August 16, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF For the first week in many, both US and global equity markets closed in the red. The move to the downside comes on the heels of a small but mighty push to new highs in both the S&P 500 and the Dow Jones Industrials. More significantly was the participation that global markets took in on the downside action, with almost every major equity index closing lower on the week. Such a move across the board gives the possible scenario for a further move to the downside as markets continue to gain momentum in the same direction. The market is still awaiting news from the US Federal Reserve regarding their next move in their targeted interest rate. Currently the targeted rate it 0-.25%, this means that the FED is targeting interbank loans to be between the range … Continue reading Recap: Week Ending August 9, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF After a week of strong horizontal consolidation in both the Dow Jones Industrial Average and the S&P500, equities were able to close the week on all time highs. Also, the NASDAQ hit a new 13 year high, adding more strength to the rally. On the other hand, the Toronto Stock Exchange traded downwards, however, the drop was nothing major. The slight pullback in the index signals the possible correction even though the drop was no more than 2.3% to the downside. The idea of a floor on the TSX here comes into play as it bounced off levels which are slightly above its 200 and 50 daily averages, a key zone for support. In Europe the London Financial Times Index, FTSE, rose to its highest level seen in the month of July. The pop in the … Continue reading Recap: Week Ending August 2, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF The lack of conviction in global markets has yet again led to tight narrow range trading in North American markets. Equity indexes in the US finished mixed with both the Dow Jones and NADAQ closing higher while the S&P 500 lagged. Without the in sync moves in the same direction US, equities are expected to trade horizontally for the time being. With this being said, the TSX as closed negative on the week as gold continued to march higher. This week was full of earnings, Caterpillar reported and missed estimates and also cut annual earning forecasts. As the news broke, CAT fell 4.2%. The weakness seen in CAT can be somewhat attributed to the fall in the price of gold. As Caterpillar supplies mining equipment, the demand for their equipment has been cut as gold prices … Continue reading Recap: Week Ending July 26, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF  Narrow ranges and light volume, summertime trade is in full force. This past week marks the tightest range on the Dow Jones Industrial Average traders have seen in over 6 weeks. Even though both the Dow Jones and S&P 500 both made new highs and closed positive on the week, the NASDAQ 100 closed negative. This is following poor earnings from its components. This is a case of extreme divergence. If this divergent activity continues between the major indexes, tightened ranges can be expected to continue. The tightened range comes interestingly enough at the start of earnings season. This may be a sign of many investors repositioning themselves or simply just waiting on corporate earnings. This past week the Dow component Coke report earnings of $0.59 a share compared to a prior reading of $0.61 per … Continue reading Recap: Week Ending July 19, 2013

New MBA trading courses at the HIDC New Undergraduate trading courses at the GTF Once again US stocks rose on the week, however, unlike last week stock indexes closed at new highs. Stocks around the globe continue to rebound off a small sell off seen in June. It appears that stocks have come back twice as strong in this shorter duration rally than they did prior to the small sell off. During the week, we heard the minutes from the FOMC – Federal Open Markets Committee. Through the minutes it was understood that the economy is improving as a steady rate, however, slowing down QE, Quantities Easing, is not justifiable at this time. Even though the US may be in a position to slowly end such a program, other global nations are not in such a state. If the US moves to fast in raising rates, the global recovery will … Continue reading Recap: Week Ending July 12, 2013