due diligence
Day Trading Course, YEN rises as investors seek safety – CAD rises with new majority gov’t
The yen rose against most of its major counterparts as Asian stocks
declined amid signs global economic growth is losing momentum, boosting demand
for the relative safety of Japan’s currency. The MSCI Asia Pacific
Excluding Japan Index of shares dropped 0.8%, led by raw-material producers.
Japan’s currency also advanced against 15 of its 16 major counterparts as the
U.S. and Australia increased security at their embassies around the world on
concern this week’s killing of Osama bin Laden may lead to revenge attacks. The
yen climbed to 120.05 per euro from 120.45 yesterday, after earlier rising to
119.76, the strongest since April 27. Japan’s currency gained 0.4% to 80.91 per
dollar after advancing to 80.90, the highest level since March 25. The greenback
traded at $1.4836 per euro from $1.4830.
The Canadian dollar gained as three television networks projected
that Prime Minister Stephen Harper won a majority of seats in Parliament, giving
him a mandate to fund corporate and personal income tax cuts with curbs on
spending. Harper’s Conservatives were ahead or leading in 166
districts, according to preliminary results from Elections Canada. The New
Democratic Party was leading in 103 seats and will form the official opposition,
followed by 34 for the Liberal Party. The separatist Bloc Quebecois led in four
seats with the Green Party ahead in one. The Conservatives held 143 seats in the
308-seat legislature before the vote. Canada’s dollar rose 0.4% to 94.70 cents
versus the U.S. currency.
The Australian and New Zealand dollars slipped for a second day as
crude oil prices dropped. Australia’s dollar declined 0.4% to $1.0904
after rising to $1.1012 yesterday, the strongest since its free float in 1983.
The kiwi fell 0.2% to 80.49 U.S. cents.
Day Trading Course, S&P 500 Daily Price Action
Price traded up a couple points into the 1325 area in the overnight session after Friday traded to a low of 1318.75. Volume for Friday came in around the 1.88M mark, and trading closed the week at 1323.75. Watch for the low volume trading, this is where many people get hurt, looking for the move that doesn’t come. With no or low volume I will be looking for this to stay in the channel between 1323.75 and 1336.00. Today’s trading could see a test down to test the 1323.50 support with 1320.75 and 1315.25 as the next levels of support. With a downside break through 1320.00 area, price could continue to test into the 1305.00 area of support.
With light volume we could see this move back to the previous high in the 1336 area of resistance, we have been stuck in this area now for about 2 weeks.
Day Trading Course, Dollar and euro gain against yen – Silver beats new records
The dollar approached a six-month high versus the yen after Federal Reserve Chairman Ben S. Bernanke said inflation expectations need to be watched “extremely closely.” The euro rose toward a 10-month high against Japan’s currency on speculation the ECB will raise interest rates this week while the Bank of Japan will keep them near zero. The yen also fell against all its major counterparts before reports that economists said will show European retail sales increased and U.S. service industries expanded, reducing demand for Japan’s currency as a refuge. The yen declined to 84.36 per dollar from 84.06 yesterday, after dropping to 84.73 on April 1, the weakest level since Sept. 24. Japan’s currency fell to 119.76 per euro from 119.54 yesterday, when it depreciated to 120.06, the lowest since May 10. The euro was at $1.4203 from $1.4221.
Euro-region retail sales rose 0.1% in February from January, when they gained 0.2%, according to a survey before today’s report. The U.S. ISM’s index of non-manufacturing businesses was 59.5 in March after a 59.7 reading the previous month that was the highest since August 2005, a separate survey showed ahead of today’s data. A reading above 50 signals growth.
The Dollar Index gained for a second day after Bernanke said he expected an increase in commodity prices to create a “transitory” boost in U.S. inflation and the central bank would act if he is proven incorrect. The Fed will today release minutes of its March 15 meeting where policy makers said the U.S. economic recovery “is on a firmer footing.” The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, advanced 0.1% to 76.008.
Australia’s dollar fell for a second day after central bank Governor Glenn Stevens left interest rates unchanged and a government report showed the country unexpectedly recorded a trade deficit. The Australian currency weakened versus 15 of its 16 major counterparts after the statistics bureau said the deficit was A$205 million ($212 million) in February. Economists had predicted a surplus of A$1.2 billion. The Aussie declined 0.3% to $1.0329 from yesterday, when it rose to $1.0417, the strongest level since it began trading freely in 1983.
Silver climbed to its most expensive level versus gold since 1983 as rising inflation spurred by commodity shortages, economic recovery and turmoil in the Middle East bolstered demand for the metal. An ounce of gold bought 37.16 ounces of silver, compared with an average of 62 in the past 10 years. Silver for immediate delivery has more than doubled in the past year while gold gained 27%, cutting the ratio from a high of 70 in June. Silver for immediate delivery gained as much as 0.5% to $38.7562 an ounce, the highest level since 1980, and traded at $38.7125 this morning. The cash metal reached a record $49.45 an ounce in January 1980. Gold advanced 0.2% to $1,436.75 an ounce.
