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Day Trading Course, Positive Eurozone auctions boost Euro
Day Trading Course, Positive Eurozone auctions boost Euro while FED extends near 0 interest rates to push Gold.
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This week better than expected US equity earnings were offset by poor economic data. Weak GDP in both the US and the UK, showed that final demand from the consumer is still relatively weak. Supported by the ECB’s supply of low cost funds to European banks, positive auction data in peripheral Europe helped European bourses remain on the offensive. And the FOMC surprised investors by keeping rates low and extending the date that they will remain close to zero.
FOMC and Earnings Drive Riskier Asset Sentiment. The dollar is broadly weaker for most of the week with European markets holding on to a better risk backdrop following another encouraging Italian auction, along with hopes for a Greek debt deal. However, Portugal and Spain still remain a concern with Portuguese yields on the rise and Spanish retail sales and unemployment disappointing expectations.
Discussions between Greece and its private sector creditors over a 100 billion Euros debt write-down edged towards an agreement, with bond holders seemingly willing to accept lower yields on their future holdings of Greek debt. The two sides were discussing a deal that would see Greece pay an average coupon below 4% on newly issued Greek debt. A deals would allow the EU to move closer to fiscal unity.
On Friday, the US released 4th quarter GDP which increased by 2.8% annualized. Output was driven by consumption, net external trade and inventories, with consumption boosted by the increase in real incomes as abating prices pressures should marginally boost real incomes. Expectations were for an increase of 3%, which was slightly disappointing.
On the earnings front, the US witness better than expected numbers from a number of large cap companies. Caterpillar, 3M and Apple all showed much better than expected earnings. Aplle beat expectations handily, selling more than 37 million iPhones. Apple also surged with its sales of its iPad, selling 15.43 million units, which was 4 million more than it sold in the previous quarter. Apple sold 5.2 million Mac computers, beating its mark of 4.9 million.
The FOMC took center stage mid-week by keeping rates unchanged and extending the time frame of when rates could change to the end of 2014. This initially helped riskier assets rally, which seemed to be relatively short lived.
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| The Euro Tests Resistance
The EUR/USD was able to break through the 20-day moving average as investors moved into riskier assets. The currency pair tested horizontal trend line resistance near 1.32, twice before profit taking pushed the currency back. Support on the currency major is seen near the 20-day moving average near 1.30, and then again at the 50-day moving average near 1.2850.
Gold closes 4th week of gains Increasing liquidity from the FOMC pushed gold prices above resistance near 1680, on its way to 1730. Momentum in the yellow metal continues to move higher, with the 20-day moving average crossing above the 50-day moving average. Target resistance for gold prices are 1750. Support is seen near 1650.
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Day trading course will be in your area soon, join us for Day trading education.
The S&P500 emini futures is one of the largest professionally day traded markets in the world. Our Day trading course focuses on training you on how to see price and direction in the marketplace and how to leverage your strengths to take a profit out of the market.
Disclaimer: day trading is high risk, do your own work : The efficacy of both technical analysis and fundamental analysis is disputed by efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in trading.
Day Trading Course, Week in review
Day Trading Course, How do you ride a rollorcoaster?
Anyone trading in the market these days will have noticed one thing if nothing else. The markets this last little have been pretty much like that of a roller coaster amusement ride. For some people (Day Traders in particular) a lot of fun with large intra-day swings that can turn HUGE profits in short periods should you be on the right side, while others are scared to death (the average investor) fearing that any day now with these crazy moves they will watch yet another chunk of their portfolio disappear into the abyss. The question is… “Which are you?” Are you getting the results that you want? or are you running scared as every time it seems as though it could pick up and move in your favour, you seem to get get an unexpected turn against you? If you are the second there is good news. You can do something about it, and that is what I encourage you to do. Instead of watching from the sidelines or even worse watching your money disappear into the previously mentioned abyss.
That being said, let’s take a look at a chart of the S&P 500 to get an idea of what “could” happen over the next few days and possibly weeks. Looking ar the daily chart we can see that since hitting the 1370 high in the last couple days of July, and the beginning of August when we hit the first low in the 1080.00 area we have been riding the previously roller coaster. These ranges have traded sideways into a tightening range for 5 months now, forming a painfully large and long running pennant formation. As we continue to see lower highs followed by higher lows our range continues to tighten as we wait for the unavoidable choice in direction to follow.
Day Trading Course
What direction you ask? That is for an upcoming post, right now we will focus on getting you through the next few days and possibly weeks. On the chart we can see that as of today’s close we are touching into a very important area of support. That area is pretty much the point of control for this range we have been trading the last few months, the 1200-1210 area. Should the support hold here, we will watch for the move back to 1220, and then 1250. Should this 1200 area not provide the support needed to hold this market up, the next stop will be the 1185.00 area. This will test again to find out if this 5 month trend will continue to hold or break out into direction. Should support hold, this pennant could continue to trade into the new year as things continue to drag on. This could take anywhere from the next couple days until the end of next week to play out, then based on the move we get there we can then look at targeting the next. Until then, Trade what you see. I’ll see you at the starting line!
Day trading course will be in your area soon, join us for Day trading education.
Day trading course will be in your area soon, join us for Day trading education.
The S&P500 emini futures is one of the largest professionally day traded markets in the world. Our Day trading course focuses on training you on how to see price and direction in the marketplace and how to leverage your strengths to take a profit out of the market.
Disclaimer: day trading is high risk, do your own work : The efficacy of both technical analysis and fundamental analysis is disputed by efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in trading.
