Monthly Archives: February 2012

Stocks Higher Ahead of ECB

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trading has an extra day this leap year - caricature for binary options news udpate from optionsclick blog

What are you trading this leap year day?

Stocks found support in Asian trading ahead of today’s liquidity boosting operation conducted by the European Central Bank. Investors appear to have adopted a wait and see policy, on the ECB’s second 3 yr long-term refinancing operation. This was after a comparable liquidity injection in December eased pressure on peripheral euro zone bond markets. Investors are expecting the liquidity operation to amount to almost 500 bn Euros, following on from banks borrowing 489bn Euros in the December operation. The operation makes 3 yr loans accessible and available to banks at interest rates deemed attractive and with much more manageable collateral necessities. As a result the EUR/USD was largely unmoved, rising just 0.01% and the USD/JPY, USD/CHF, EUR/CHF all posted increases or declines less than 0.02% as investors stayed relatively clear of the currency markets and instead finding favour in the riskier stocks and in the safe haven commodities.

The Nikkei in Japan increased to a 7 month high, breaking the 9800 mark for the1st time since August 2011 before being pulled back by profit takers. The gains made in the month of February are nearing nearly 11% for the Nikkei as investors have shown their bullish sentiment since the Bank of Japans monetary easing policy over two weeks ago. At time of writing (8.09amGMT) the Nikkei was trading at 9723.24, an increase of just 0.01%.

The commodity markets saw some intraday volatility in Asian trading as earlier support for the precious metals markets made way for profit taking ahead of European markets opening. Gold was marginally down, -0.05%, trading at 1787.35, whilst Silver was down 0.28%, trading at 37.100. Gold futures seem to be likely to test the support level at Tuesday’s low of 1,767.25, and find resistance at Tuesdays high of 1,791.65

Crude oil continued to increase in value after yesterdays profits taking as tensions in Iran have failed to dissipate and small glimmers of hope in global economic recoveries suggested demand for oil might increase. Crude Oil as up 0.36%, trading at 106.94 a barrel

Today, investors should keep an eye on the ECB liquidity operation as well as the U.S. publishing its preliminary report on Q4 GDP. Federal Reserve Chairman Ben Bernanke is also testifying on the semi-annual monetary policy report to the House Financial Services Committee later in the day.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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German Vote On 2nd Greek Bail Out Pushes EUR Higher

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How the EU trades assets with Greece

The Euro continued to make gains against the USD after a 2nd tranche of bail out funds for Greece was agreed by Germany, the largest economy in the Eurozone. The EUR/USD was up 0.35%, trading at 1.3444 even though Standard and Poor, the credit ratings agency reduced the credit rating for Greece as ‘selective default’.  This follows on from the Greek government’s decision to include “collective action clauses” attached to its bonds. The added clauses force those holding the bonds to participate in debt restructuring if a voluntary write down of their bonds is not accepted. Investors were however encouraged by both the Greek government and Standard and Poor saying that Greece’s rating will probably be increased once the debt swap deal with private creditors is completed.

The price of Crude Oil dipped slightly in Asian trading having reached a 9 month high earlier in the week. Fears over waning demand from Europe and Asia helped keep a check on the prices and oil was down 0.06%, trading at $108.50 a barrel. Concerns over the escalating tensions in Iran, the world’s 4th largest oil producer were negated by Saudi Arabia stepping up its oil exports and filling in any gaps left by Iranian oil sanctions.

The precious metals market found support, primarily on the back of a weakened USD. Gold was up 0.15%, trading at 1777.75 a troy ounce, whilst Silver was up 0.21%, trading at 35.680. The weakened greenback was exemplified by the US Dollar Index which measures the USD against a basket of 6 major currencies. In Asian markets, the US Dollar Index was down 0.34%, trading at 78.37.

Today, investors should keep an eye out for:

1.30pm GMT –  USD Core Durable Goods Orders, previous 2.2%, forecast 0.0% – A higher than expected reading should be taken as positive/bullish for the USD.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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MARKET CLICK – MONDAY, FEB 27 2012

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Iran, Oil, Eurozone, Gold Top This Week’s News

  • Oil near 10 month high with supply concerns and continued tensions regarding Iran.
  • Continued concerns in Europe stopped Gold from breaking the $1,780 resistance. Investors expect Gold to trade between $1,760-80.
  • Expensive Oil is offsetting European growth outlooks. This is prompting investors to shy away from European stocks and the Euro.
  • S&P 500 at highest level since 2008 with positive US news regarding jobs, consumer sentiment and housing data.
ASSET CHANGE LAST TREND PLATFORM
NIKKEI + 15.92 9663.30 UP HIGH/LOW
S&P 500 + 2.28 1,365.74 UP HIGH/LOW
NASDAQ - 6.77 2,963.75 UP HIGH/LOW
GOLD + 1.30 $1,777.70 DOWN RANGE
OIL - 0.41 $109.36 UP HIGH/LOW
EUR/USD - 0.0019 $1.3443 DOWN RANGE
USD/JPY - 0.15 81.11 DOWN HIGH/LOW
DOW - 1.74 12,982.95 UP ONE TOUCH
GOOG + 3.79 609.90 UP RANGE

How will you profit this week at OptionsClick?

WHAT SHOULD I TRADE? GOLD, OIL, S&P 500

WHAT ARE THE TRENDS? US Markets look to rise as Dow nears 13,000. But pay attention to Oil and Eurozone news for short term trading success.

WHAT PLATFORM SHOULD I USE? Use the ONE TOUCH orHIGH/LOW platforms for best results this week.

WHAT ELSE SHOULD I KNOW? Keep up with news regarding Iran. This is the best predictor for profiting on Oil this week.

 

 

Recent Popular Trends
OIL HIGH
GOLD INSIDE
GOOG HIGH
DOW TOUCH
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Asian Stocks Fall On High Oil Prices

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Ahmedinajad fishes Obama with oil

What's your preferred asset to bait with?

Despite Japanese Stocks nearing a 7 month high in Asian trading, the Asian stock markets were generally down this morning as high oil prices increased worries regarding its effect upon the delicate global economies. Having reached a 9 month high of 109.28, the price of crude oil pulled back to fall 0.73%, trading at 108.98 a barrel.  However concerns mount that the fragile recoveries seen in the economies of Asia, US and Europe could get harmed by the rising oil prices.

On the back of the oil fears and partly due to some profit taking after yesterday’s gains, shares across the board fell in Asian trading. The Japan 225 was down 0.14%, trading at 9633.93 whilst the Nikkei is close to settling at the last sessions 7 month high, as the Japanese Yen fell to its lowest level against the USD since May 2011. The USD/JPY was down 0.31%, trading at 80.95 Yen providing a boost for future export earnings and continuing the two week weakening in the JPY after the surprise increase in its economic stimulus program implemented a fortnight ago.

The EUR/USD was down slightly, pulling back from a twelve week high as the G20 finance ministers were unable to make headway in increasing the IMF’s lending capacity. The postponement of a decision for the next two months was not greeted with enthusiasm by investors but the Euro remained relatively supported as investors look ahead to the ECB 2nd liquidity operation taking place on Wednesday.

The strengthened USD saw investors cash in on some of the gains seen in the commodity markets and Gold was down 0.25%, trading at 1771.95, whilst Silver was marginally down 0.02%, trading at 35.412.

Today, traders can expect some support for the precious metals and can see them rising during European trading as investors look for a hedge against the USD. Highlights of the economic calendar for investors to look out for:

10.30am GMT German 12 month debt auction,

3pm GMT – US Pending Home Sales Previous -3.5%, Forecast 1.0%. A higher than expected reading should be taken as positive/bullish for the USD

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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Euro and Sterling close week on a high

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binary options caricature of the g20 finance ministers fixing the euro debt crisis in mexico

What did your finance minister do in Mexico?

The Euro ended the trading week on a high as positive data from Italy and Germany saw the EUR/USD finish 0.56% higher, trading at 1.3449. An Italian Bond auction witnessed a higher than expected turnout and yields fall amidst a renewed appetite for risk amongst investors. At one point the EUR/USD reached 1.3476, before settling back.

Also buoying the EUR was the Business Climate index in Germany, rising to 109.6 for February, exceeding the expected 108.8 and up from January’s 108.3.The data coming from the strongest economy in Europe increased feelings that Germany is moving towards better economic times as GDP figures matched market expectations.

The Greenback which fell 0.27% in the US Dollar Index also suffered in the Cable as the GBP/USD pairing ended Friday up 0.81%, trading at 1.5872. The British Pound was boosted by the Bank of England talking down the threat of a double dip recession as the central bank seems to be reducing its dovish tone regarding monetary policy in anticipation for an economically better 2012.

There are strong indications emanating from the UK that the economic recovery is gathering a little momentum and as well as a reduced risk of undershooting the targeted 2% inflation rate, an increase in the number of mortgage approvals is expected to be announced this week, further propping up the GBP.

Gold experienced some profit taking on Friday as healthy economic releases from Europe saw investors move away from the traditional safe havens like the USD and Gold in favour of riskier assets. Having made gains for most of the week, Gold fell 0.71%, trading at 1773.55.

Monday should be a relatively quiet day on the economic calendar with the highlights being:

3pm GMT – Pending Home Sales in the US (year on year)
23:50pm GMT – Japanese Retail Trade figures released (year on year)

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.

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