BinaryOptionStrategy

Bernanke’s Comments Trigger Stock Market Rally
 
To read the Weekly technical report click here
To read the Weekly fundamental analysis click here
 
Equities
Asian markets traded mixed on Monday following Friday’s disappointing home sales data from Wall Street,. The Nikkei rose .1% to 10018, the ASX 200 slipped .2%, and the Kospi dropped .4%. In China, the Shanghai Composite rose fractionally, and the Hang Seng settled flat.
 
European markets rallied in the afternoon as comments by Fed Chairman, Bernanke, suggested further economic easing was likely. Bernanke said the economy must grow quicker to produce more jobs, and suggested that process could be aided by government policies.
 
The DAX climbed 1.2%, the FTSE advanced .8%, and the CAC40 gained .7%. Germany’s IFO business activity report rose unexpectedly, contributing to the gains.
 
US stocks posted large gains, encouraged by the Bernanke’s remarks. The Nasdaq surged 1.8%, the S&P 500 climbed 1.4%, and the Dow advanced 161 points to 13242.
 
http://www.binaryoptionstrategy.com/wp-content/uploads/2012/03/mar-27-nasdaq-300x136.png
Nasdaq Spikes 1.8%
 
Lions Gate Entertainment jumped 4.5% after the new movie, “The Hunger Games”, netted $214 million in its opening weekend.
 
Treasuries and Commodities
Bond prices dropped, despite the possibility of a third round of quantitative easing by the Fed. 10-year nites eased 5/32 to yield 2.25%, and 30-year notes slipped 22/32 to yield 3.34%. German bonds tumbled, with 10-year notes down .785 and 30-year notes down 1.76.
 
Commodities spiked, especially metals. Copper advanced 2.4% to 3.896, gold gained 1.7% to 1691.10, and silver rallied 1.8% to 32.86.
 
Crude oil inched up .25 to 107.12, and gasoline rose .8% to 3.4136, while natural gas slumped 2.6% to 2.215, a 10-year low.
 
Currencies
The Dollar tanked in the currency markets. The Australian Dollar led the gains, rising 1.3% to 1.0536. In Europe, the Euro gained 1.2% to 1.3356, the Swiss Franc rose 1.1% to 1.1074, and the Pound advanced .9% to 1.5968. The Yen bucked the trend, slipping .3% to 82.88.
 
Economic Outlook
Continuing Friday’s dreary housing news, pending home sales unexpectedly fell .5%. Analysts had forecast a gain of 1% after last month’s 2% jump.
 
Tuesday’s economic data will include consumer confidence, the Case-Shiller home price index, and the Richmond manufacturing index.
 
Earnings are due from Lennar, Robbins & Myers, and Walgreen’s.
 
Binary Options Trading analysis written by Bradley Welcher

Binary Options Daily Analysis – Retail Stocks Drop on Weak Data
 
To read the Weekly technical report click here
To read the Weekly fundamental analysis click here
 
Equities
Asian markets traded lower as disappointment over Friday’s European Summit set in. The Nukkei dropped 1.2% to 8553, the Kospi slumped 1.9%, and the ASX 200 declined by 1.6%. The Shanghai Composite fell 1.9% to 2249, its lowest level since March 2009, and the Hang Seng eased .7%.
 
European markets closed mixed following Monday’s slide. The CAC40 fell .4%, and the DAX slipped .2%, while the FTSE rallied 1.2%, lifted by the energy sector. Investors digested news that German chancellor, Angela Merkel, opposes an increase in Europe’s bailout fund.
 
US stocks dropped in the late afternoon, following the Fed’s statement, which failed to entice investors. The Dow closed down 66 points to 11955, the S&P 500 dropped .9%, and the Nasdaq fell 1.3%
 
Best Buy shares tumbled 15.5% after reporting earnings which were well below estimates. Disappointing retail sales data hit sent the retail sector down 3%, with Amazon shares shedding 4.8%.
 
http://www.binaryoptionstrategy.com/wp-content/uploads/2011/12/dec-14-nasdaq.png
Nasdaq Loses 1.3% in Afternoon Selloff
 
Treasuries and Commodities
US bonds rose for a second day, with 10-year notes up 13/32 to yield 1.97%, and 30-year notes up 29/32 to yield 3.00%. In contrast, UK bonds fell, with 10 year notes losing .23 to yield 2.13%, and 30-year notes dropping .96 to yield 3.2%.
 
The energy sector advanced, as oil and gasoline both rallied 1.8% to 99.52 and 2.6107 respectively.
 
Metals however, tumbled, as gold plunged 2.3% to 1629.10, copper declined 2.1%, and silver lost 1.4%.
 
Currencies
The Euro extended its losses from Monday, dropping 1.1% to 1.3031. The Pound and Canadian Dollar both lost .7%, and the Australian Dollar fell .5% to 1.0005. The Yen settled at 77.99, down fractionally, and the Swiss Franc slumped .8% to 1.0571.
 
Economic Outlook
Tuesday’s economic data was disappointing. Retails sales rose by.2% in November, significantly less than the .6% forecast. Business inventories rose by .8%, slightly more than expected.
 
Wednesday’s reports will include import prices, weekly oil inventories, and weekly mortgage applications.
 
No major earnings reports are due.
 
Binary Options Trading analysis written by Bradley Welcher