Binary Options Analysis

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Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

 

Equities

 

Asian markets started the week on a down note, as escalating fears over Europe’s debt troubles and signs of a global recession weighed on investors. In Japan, the Nikkei fell 2.2% to 8374, its lowest close since April 2009, as financial shares dropped following Friday’s commodity slide. The Kospi dropped 2.6% to 1653, and Australia’s ASX 200 lost 1%, as miners tumbled. Greater China experienced similar losses, with the Shanghai Composite closing down 1.6%, and the Hang Seng dropping 1.5%.

 

European markets gained, boosted by efforts to expand the European Financial Stability Fund to better address the debt crisis. The DAX jumped 2.9% to 5346, the CAC40 rallied 1.8% and the FTSE rose .5%. Banks led the advance, with the sector gaining 3.8%. UBS announced a new CEO, after the former-CEO resigned over a $2.3 billion loss by a rogue trader.

 

US markets staged a powerful afternoon rally leaving the Dow up 272 points at 11044. The S&P 500 jumped 2.3%, while the Nasdaq advanced 1.4%.

 

Eastman Kodak shares dropped 27% to 1.74 after the company announced it was tapping a credit line for $160 million. Berkshire Hathaway shares surged 8.1% after the company announced a buyback plan.

 

 

 

Treasuries and Commodities

Bonds fell, as the stock market’s rally encouraged risk taking. 10-year notes dipped 18/32 to yield 1.9% and 30-year notes dropped 1 29/32 to yield 2.99%.

 

Commodities traded mostly higher after Friday’s sea of red. In energy, crude oil gained 1.4% to 80.96, and natural gas rallied 2.3% to 3.785.

 

Silver edged up .6% after last week’s tailspin drop, and copper gained 1.3% to 3.323. Gold however continued to fall, closing down 1.4% at 1617, but was well off its low of 1535.

 

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Gold Mostly Recovers from Morning Plunge

 

 

Currencies

The currencies markets swung widely on Monday, but ended little changed. The Dollar had initially gained, but news of progress on the European debt front helped reverse those gains. The Euro closed up .2% at 1.3514, recovering from a drop down to 1.3362, and the Pound rallied .7% to 1.5561. The Canadian Dollar closed flat at 1.0282, reversing from 1.0388. The safe havens gained as well as the Swiss Franc gained .4% to .9022, and the Yen rose .3% to 76.45.

 

 

 

Economic Outlook

New home sales fell 2.3%, roughly in line with expectations, putting the annual rate at 295K, down from last month’s 302K.

 

Tuesday’s economic calendar will include the Case-Shiller Home Price Index, Consumer Confidence, and an auction of 2-year notes.

 

Earnings are expected from American Greetings, Jabil Circuit, Accenture, and Walgreens.

[BinaryOptionStrategy]

Binary Options Analysis – Equities Soar on European Debt Hopes

 

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Equities

Equities rallied amid hopes that the European Financial Stability Facility (EFSF) will buy up Greek debt to help regional banks.

 

In Korea, the Kospi soared 5% to 1736, its biggest one-day gain in nearly 3 years. The Nikkei jumped 2.8% to 8610 and the ASX 200 rallied 3.6%, led my miners and banks. Hong Kong’s Hang Seng rallied 4.2%, while China’s Shanghai Composite rose just .9%.

 

European indexes posted strong gains, as the banking sector rallied nearly 7%. The DAX climbed 5.3%, the FTSE advanced 4%, and the CAC40 surged 5.7%. Greece’a parliament approves a highly unpopular property tax as part of its austerity program, while citizens planned another round of demonstrations. Doubts over any further bailout efforts remain high, particularly due to Germany’s resistance to additional aid.

 

US stocks opened sharply higher, but much of that evaporated in the last hour of the day. The Dow closed up 147 points at 11191, after rising more than 300 points earlier in the day. The Nasdaq gained 1.2% and the S&P 500 rose 1.1% to 1175.

 

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Stocks Pare Gains in Last Hour

Walgreen’s shares tumbled 6.3%, despite reporting strong profits. Research in Motion popped 4.5% higher on rumors Carl Icahn may invest in the company.

 

 

 

Treasuries and Commodities

Bonds fell for a second day, as 10-year notes fell 24/32 to yield 1.98%, and 30-year notes dropped 1 26/32 to yield 3.08%. In Germany, bond prices fell sharply in reaction to progress on the Euro debt front. 15-year notes sank 2.65 to yield 2.5%, and 30-year notes tumbled 2.29 to yield 2.7%.

 

Commodities staged a strong recovery rally after the recent round of losses. In energy, crude oil rose 4.5% and gasoline gained 5%. Silver led metals higher, rising 5.9% to 31.755. Gold climbed 52.70 to 1647.50, and copper jumped 4% to 3.4145.

 

 

 

Currencies

The Australian Dollar outperformed the other major currencies, soaring 1.6% to .9920. The Euro rose .4% to 1.3583, but was well off its session high if 1.3669. The Pound and Swiss Franc both closed up .5%, while the Yen slipped .7% to 76.92.

 

 

 

Economic Outlook

The Case-Shiller Home Price Index indicated that home prices rose for a 4th month, but analysts expect prices to fall in the coming months. Consumer confidence came in slightly below estimates at 45.4. The Richmond Manufacturing Index continued to show a decline in business activity, but showed an improvement from last month.

 

Wednesday’s economic calendar will include durable goods orders, weekly mortgage applications, and weekly oil inventories.

 

Earnings are due from Darden Restaurants and Family Dollar Stores.

 

 

Binary Options Trading analysis written by Bradley Welcher

[BinaryOptionStrategy]

Binary Options Analysis – Equities Soar on European Debt Hopes

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy portal

 

 

 

 

 

Equities

 

Equities rallied amid hopes that the European Financial Stability Facility (EFSF) will buy up Greek debt to help regional banks.

 

 

In Korea, the Kospi soared 5% to 1736, its biggest one-day gain in nearly 3 years. The Nikkei jumped 2.8% to 8610 and the ASX 200 rallied 3.6%, led my miners and banks. Hong Kong’s Hang Seng rallied 4.2%, while China’s Shanghai Composite rose just .9%.

 

 

European indexes posted strong gains, as the banking sector rallied nearly 7%. The DAX climbed 5.3%, the FTSE advanced 4%, and the CAC40 surged 5.7%. Greece’a parliament approves a highly unpopular property tax as part of its austerity program, while citizens planned another round of demonstrations. Doubts over any further bailout efforts remain high, particularly due to Germany’s resistance to additional aid.

 

 

US stocks opened sharply higher, but much of that evaporated in the last hour of the day. The Dow closed up 147 points at 11191, after rising more than 300 points earlier in the day. The Nasdaq gained 1.2% and the S&P 500 rose 1.1% to 1175.

 

 

Walgreen’s shares tumbled 6.3%, despite reporting strong profits. Research in Motion popped 4.5% higher on rumors Carl Icahn may invest in the company.

 

 

 

 

 

Treasuries and Commodities

 

Bonds fell for a second day, as 10-year notes fell 24/32 to yield 1.98%, and 30-year notes dropped 1 26/32 to yield 3.08%. In Germany, bond prices fell sharply in reaction to progress on the Euro debt front. 15-year notes sank 2.65 to yield 2.5%, and 30-year notes tumbled 2.29 to yield 2.7%.

 

 

Commodities staged a strong recovery rally after the recent round of losses. In energy, crude oil rose 4.5% and gasoline gained 5%. Silver led metals higher, rising 5.9% to 31.755. Gold climbed 52.70 to 1647.50, and copper jumped 4% to 3.4145.

 

 

 

 

 

Currencies

 

The Australian Dollar outperformed the other major currencies, soaring 1.6% to .9920. The Euro rose .4% to 1.3583, but was well off its session high if 1.3669. The Pound and Swiss Franc both closed up .5%, while the Yen slipped .7% to 76.92.

 

 

 

 

 

Economic Outlook

 

The Case-Shiller Home Price Index indicated that home prices rose for a 4th month, but analysts expect prices to fall in the coming months. Consumer confidence came in slightly below estimates at 45.4. The Richmond Manufacturing Index continued to show a decline in business activity, but showed an improvement from last month.

 

 

Wednesday’s economic calendar will include durable goods orders, weekly mortgage applications, and weekly oil inventories.

 

 

Earnings are due from Darden Restaurants and Family Dollar Stores.

[BinaryOptionStrategy]

Binary Options Report (Sept. 26- Sept. 30)

 

Analysis written by David Frank - BinaryOptionStrategy portal

 

Markets

 

Stocks closed out the worst quarter in nearly three years. This comes amid fears over the global recovery. Markets finished near session lows for the day as investors were reluctant to stay long ahead of the weekend. For the quarter, the DJIA and the S&P sank more than 12 percent, while the Nasdaq fell over 14 percent.

 

On Friday, the Dow Jones Industrial Average fell 240.60 points, or 2.16 percent to finish at 10,913.38. The S&P 500 fell 28.98 points, or 2.5 percent to close at 1,131.42, while the Nasdaq lost 65.36 points, or 2.63 percent to end at 2,415.40.

 

 

 

 

 

 

 

FOREX

 

In an unexpected burst of momentum in the final hours of trading this past Friday, the Euro tumbled to the threshold of major support against its US and British counterparts. This puts the world’s second most liquid currency at immediate risk of a extraordinary plunge to start the new trading week. It is an unusual situation where the end of the week, month and quarter align. It is even rarer that this particular event occurs during a period when the financial markets are on the verge of a second round of a severe financial crisis.

 

End-of-quarter position is not an unusual phenomenon. Still, we have not seen it have so significant an impact on the Euro in recent history. Was the currency’s sharp drop a one-off repatriation or was it a lasting shift in sentiment running under the guise of capital flows? Depending on the answer to that question, the Euro currency can take dramatically different paths next week.

 

If the late tumble was indeed the influence of a temporary, receding capital tide, it is very likely that the floor underneath EURUSD holds up to start the week and further encourages a meaningful recovery later into the week as we approach event risk. On the other hand, if confidence in the Euro is collapsing under the weight of its own fundamental future, we could come to the rare instance where a major generates a new trend in a thin session (the opening Asian session) and/or before heavy event risk.

 

 

 

 

 

COMMODITIES

 

Gold rose $5, or 0.3%, to end at $1,622.30 on the Comex division of the New York Mercantile Exchange. Prices traded as $1,642.50 on some momentum buying ahead of the weekend. It had earlier traded as low as $1,607.80. On Friday, crude dropped $2.94, or 3.6 percent, to end the day at $79.20 per barrel in New York. Prices have not been that low since Sept. 29, 2010. Since then crude peaked near $114 a barrel in May of this year. It’s fallen 31 percent since then as worries continue to persist about the global economy.

 

 

 

EQUTIES

 

Major banks in the US are trading lower, such as Morgan Stanley and Citigroup. Goldman Sachs also tumbled after Mediobanca Securities cut its price target on the financial giant to $106 from $120. Billionaire investor Warren Buffett said his firm Berkshire Hathaway has started share buybacks. The repurchases will not stop the company from making further acquisitions or spending on infrastructure. Buffett also reiterated his support for Bank of America.

[BinaryOptionStrategy]

Fundamental Analysis and the Week Ahead

 

Analysis written by David Frank - BinaryOptionStrategy portal

 

ECONOMIC NEWS

 

Consumer sentiment improved slightly in late September. This is according to the Thomson Reuters/University of Michigan survey. And business activity in the US Midwest grew more than expected this month. China’s manufacturing sector contracted for a third consecutive month in September. This is strongly suggesting that the world’s second-largest economy may not be immune to global headwinds.

 

THE WEEK AHEAD

 

MONDAY: ISM mfg index, construction spending, Fed’s Lacker speaks, Oracle Open World, Supreme Court starts new term

 

TUESDAY: Factory orders, Bernanke speaks, Apple iPhone event, auto sales

 

WEDNESDAY: Weekly mortgage apps, Challenger job-cut report, ADP employment report, IS non-mfg index, oil inventories

 

THURSDAY: BoE announcement, ECB announcement, jobless claims, chain-store sales

 

FRIDAY: Non-farm payroll, wholesale trade, consumer credit

[BinaryOptionStrategy]

Binary Options Analysis – 3rd Quarter Ends on Weak Note

 

Analysis written by Bradley Wechler - BinaryOptionStrategy portal

 

Equities

Asian markets traded mixed ahead of significant Chinese PMI data, due to be released over the weekend. The Nikkei, ASX 200 and Kospi all closed flat, while the Shanghai Composite slipped .3% to 2359. Hong Kong’s Hang Seng slumped 2.3%, as numerous Chinese mainland banks listed in Hong Kong tumbled more than 7%.

 

European indexes closed significantly lower, ending a difficult quarter on a somber note. Germany’s DAX sank 2.4%, the CAC40 fell 1.5%, and the FTSE closed down 1.3%. For the quarter, the DAX and CAC40 tumbled 25%, while the FTSE shed 14%. Inflation data from Europe showed annual consumer prices jumped 3% last month, more than the 2.5% expected.

 

The selling pressure continued in the US, sending the Dow down 241 points to 10913. The Nasdaq fell 2.6% and the S&P 500 dropped 2.5%, as the VIX jumped 10.6% to settle at 42.96. For the quarter, the major indexes were down between 12 and 14%.

 

Kodak’s freefall continued, as shared plummeted 54% to .78 on growing expectations the company will file for bankruptcy. Chip-maker, Micron Technologies, sank 14% after reporting a loss, and Ingersoll Rand dropped 12% after cutting its earnings outlook.

 

 

 

Treasuries and Commodities

Bonds jumped, as investors poured into the relative safety of treasuries. 10-year notes rose 23/32 to yield 1.92%, and 30-year notes surged 3 1/32 to yield 2.91%.

 

Crude oil slumped 3.6%, dropping back below 80 to 79.20, and natural gas declined 2.2% to 3.666. Gasoline futures fared better, sliding just .8%.

 

Metals closed mostly lower, although gold managed to rise .3% to 1622.30. Copper continued to drop, losing 2.9% to 3.152, and silver fell 1.4% to 30.083.

 

Agricultural futures suffered steep losses, a** wheat tumbled 6.9%, corn dropped 6.3%, and soybeans fell 4.2%.

 

 

 

Currencies

The US Dollar rallied sharply, particularly against the Euro, which fell 1.4% to 1.3388. The Canadian Dollar skidded 1.2% to 1.05, and the Swiss Franc dropped 1.1% to .9078. The Australian Dollar fell .9% to .9705. The Pound and Yen declined modestly, shedding .2% and .3% respectively.

 

 

 

Economic Outlook

Friday’s data had some bright spots, but investors failed to notice. Chicago PMI rose to 60.4 from 56.5 last month, well above expectations. University of Michigan consumer sentiment was revised upwards to 59.4, better than the 57.9 forecast.

 

Monday’s reports will include the ISM manufacturing index, construction spending, and auto sales. No major earnings reports are due.

[BinaryOptionStrategy]

Binary Options Analysis – Markets Continue to Fall, Dollar Rallies

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy portal

 

Equities

Asian markets fell on Monday as once again the week started with significant losses. The biggest loser was the Hang Seng, which tumbled 4.4% to 16882, as property shares saw double digit declines. In Japan, the Nikkei fell 1.8% to 8546, and Sony shares slumped 4.5%, touching their lowest level since the 1980’s. Australia’s ASX 200 skidded 2.8%, while markets in Korea and mainland China were closed for a holiday.

 

European markets closed lower, but were well off the session lows. The DAX fell 2.3% to 5376, but had fallen to 5289 at the open. France’s CAC40 lost 1.9%, and the FTSE declined 1%. Greek officials announced that they would miss deficit targets for the next year, suggesting recent austerity measures are insufficient.

 

US markets dropped sharply, as the Nasdaq plunged 3.3%, the S&P 500 fell 2.9% and the Dow lost 258 points, closing at 10655. The VIX jumped nearly 6% to 45.45, indicating a high level of investor fear.

 

Airline stocks tumbled after analysts raised the possibility of a bankruptcy for AMR, parent of American Airlines. The shares dropped 33% to 1.98 and weighed on the sector. US Airways dropped 16%, while Delta and Continental skidded 11%.

 

Eastman Kodak shares soared 72% to 1.34 after denying that the company is planning a bankruptcy filing.

 

Apple is expected to announce the iPhone 5 on Tuesday.

 

 

 

Treasuries and Commodities

The mounting fear sent bond prices soaring, as 10-year notes rallied 1 17/32 to yield 1.75%. 30-year notes jumped 4 11/32 to yield 2.72%.

 

Energy continued to fall, led by crude oil, which lost 3.2% to settle at 76.64. Gasoline lost 1.3% and natural gas fell 1.5%.

 

Metals traded mixed as gold gained 2% to 1655, while copper declined 2.5% to 3.072. Copper has dropped more than 30% over the past 3 months, as slowing growth and recession fears weigh on the industrial metal.

 

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Copper Drops more than 30% in Under 3 Months

 

 

Currencies

The US Dollar continued to soar, as investors dumped European currencies. The Euro fell 1.6% to 1.3178, down more than 2 cents. The Swiss Franc slumped 1.4% to .9208, and the Pound declined .9% to 1.5444. The Australian Dollar continued to fall, dropping 1.3% to .9574, and is now hovering just above its 52-week low of .9537. The only gainer was the Japanese Yen, which rose .6% to 76.65.

 

 

 

Economic Outlook

Monday’s economic data was surprisingly upbeat, but investors ignored the data, which is a very bearish indicator. ISM manufacturing PMI data came in slightly stronger than expected, rising to 51.6 from last month’s 50.6. Construction spending unexpectedly rose by 1.4%, reversing last month’s decline of 1.4%, and auto sales climbed to 13.1M, significantly higher than last month’s 12.1M.

 

Tuesday’s sole US report will be factory orders. Bernanke will be speaking to Congress.

 

Earnings are due from Global Payments and Yum Brands.

[BinaryOptionStrategy]

Binary Options Analysis – Late Day Rally Lifts US Stocks

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

Equities

 

Another round of selling hit Asian markets on mounting concerns Greece will default on its debt obligations. Korea’s Kospi was hardest-hit, dropping as much as 6.3% before partially recovering to close down 3.6%. Oil refiners fell more than 10%, as a drop in Korea’s currency, the won, raised costs and cut margins. In Japan, the Nikkei fell 1.1%, and Australia’s ASX 200 eased just .6%. Hong Kong’s Hang Seng sank another 3.4% to 16250, and is down nearly 10% over the last 3 days. China’s Shanghai Composite remained closed for a public holiday.

 

European markets closed down more than 2.5%, with banks dropping more than 4%. The FTSE fell 2.6%, the DAX sank 3%, and the CAC40 shed 2.6%. News that Dexia, a regional European bank, may need a bailout due to its Greek debt holdings contributed to the losses. Dexia shares fell 22% to 1.008.

 

A massive late day spike pulled US markets out of deeply negative territory, triggered by a report that suggested European ministers will do more to tackle the growing debt problem. The Dow had dropped more than 250 points, but closed with a gain of 153 points to 10809. The S&P 500 rallied 2.3%, and the Nasdaq soared 3%.

 

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Dow Swings more than 400 Points in Volatile Session

 

 

AMR rebounded from yesterday’s plunged, rallying 21% to 2.39. Apple announced an upgraded version its mobile phone, the iPhone 4s, but the stock closed down .6%, on apparent disappointment with the upgrade.

 

 

 

Treasuries and Commodities

Bond prices fell, even as Bernanke said the Fed will take further steps to boost the economy. 10-year notes fell 18/32 to yield 1.82%, and 30-year notes dropped 1 25/32 to yield 2.8%.

 

Commodities closed mixed as energy gained while metals fell. Crude oil inched up .3% to 77.85, while natural gas and gasoline both rallied 1.1%.

 

Gold sank 2.2% to 1621.41, and silver declined 2.6% to 30.01. Copper settled at 3.115, down 1.1%.

 

 

 

Currencies

The Dollar eased against major currencies, as positive news on the European debt front undermined the flight to safety. The Euro bounced 1.2% to 1.3354, soaring late in the day, and the Pound ticked up .3% to 1.5488. The Australian Dollar suffered a steep drop of 2.3% to .9408, hitting its lowest level in more than a year. The Yen eased .3% to 76.81, while the Swiss Franc gained .6% to .9154.

 

 

 

Economic Outlook

Factory orders unexpectedly declined by .2%, a sharp drop from last month’s 2.1% gain.

 

Wednesday’s busy economic calendar will include the ADP Employment report, the Challenger job-cut report, the ISM non-manufacturing index, weekly oil inventories and weekly mortgage applications.

 

Earnings are scheduled for Costco, Marriott, and Monsanto.

[BinaryOptionStrategy]

Binary Options Analysis – Commodities and Equities Rally on Debt Hopes

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

 

Equities

 

Asian markets shrugged off the late-day rally in US stocks, once again closing lower. The Nikkei fell .9% to 8383, and the Kospi sank 2.3%, as construction firms dropped sharply. Australia’s ASX 200 bucked the trend, closing up 1.4% as resource stocks rallied. Markets in greater China were closed for a holiday.

 

In Europe, the major indexes posted impressive gains, snapping a 3-day losing streak. The DAX soared 4.9%, the CAC40 advanced 4.3%, and the FTSE climbed 3.2%. The Euro Stoxx banks index jumped 5.7% after policymakers committed to take greater efforts to recapitalize the region’s struggling banks.

 

US markets overcame initial weakness, closing with significant gains. The Nasdaq posted the largest gain, climbing 2.3%, while the Dow rose 131 points to 10940. The S&P 500 gained 1.8% to 1144.

 

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Nasdaq Rallies 2.3%

Two exciting tech takeover possibilities boosted tech shares. Research in Motion jumped 12.4% on rumors that Vodafone may look to buy the Blackberry maker. Yahoo soared 10.1% on news that Microsoft is considering a takeover offer.

 

Costco fell 1.7% after reporting weaker than expected earnings, and Yum Brands slid 2.7% over growth concerns, even as it met analyst profit estimates.

 

 

 

Treasuries and Commodities

Bonds closed down for a second day. 10-year notes slipped 19/32 to yield 1.89%, and 30-year notes fell 1 1/32 to yield 2.85%.

 

An unexpected drop in oil inventories sent crude oil sharply higher, rallying 5.5% to 79.81. Gasoline futures gained 3.7%, while natural gas fell 2.1% to 3.563.

 

Precious metals rose as well, with gold gaining $25.60 to 1641.60, and silver advancing 2.2% to 30.48. Copper inched up less than .1% to 3.106.

 

Wheat closed up 3.5% and corn gained 3%, as agricultural futures joined in the commodity rally.

 

 

 

Currencies

The Australian Dollar staged an impressive comeback after Tuesday’s drop, surging 2.6% to .9654, signaling a return to “risk on” mode. Its peer, the Canadian Dollar rallied 1.1% to 1.0406. The Euro, Pound, and Yen all settled within .1% of their previous close, while the Swiss Franc slipped .6% to 1.0829 against the Dollar.

 

 

 

Economic Outlook

The ADP payroll report showed the economy gained 91K jobs last month, better than the 76K forecast. The official government non-farm payroll report is due on Friday, and the ADP report is seen as an indicator for that key report, although they are not always consistent.

 

ISM non-manufacturing PMI was in-line with estimates at 53, slightly lower than last month.

 

The Bank of England and European Central Bank will announce their rate decisions on Thursday. Both are expected to leave rates unchanged at .5% and 1.5% respectively.

 

Thursday’s reports will include weekly unemployment claims and chain-store sales.

[BinaryOptionStrategy]

Binary Options Analysis – Markets Rally on Central Bank Efforts

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

Equities

Asian markets snapped their 4-day losing streak, posting outsized gains. Hong Kong’s Hang Seng soared 5.7% to 17172, %, and the ASX 200 surged 3.7%, its biggest one-day gain in nearly 3 years. The Nikkei climbed 1.7% to 8522, and the Kospi rallied 2.6%. Resource related stocks led the advance, as commodity prices recovered from the recent drop.

 

The Bank of England announced a new stimulus package to boost the economy, and the ECB announced efforts to increase liquidity, helping to lift European indexes. The FTSE rallied 3.7%, the CAC40 advanced 3.4%, and the DAX gained 3.2%. Resource stocks rallied 5.1%, and banks rose 3.8%. European officials continued to discuss plans to recapitalize struggling banks, reassuring investors. Trading in struggling bank, Dexia, was halted pending details regarding the sale of its Luxembourg division.

 

In the US, markets gained for a 3rd day. The Dow gained 183 points to 11123, the Nasdaq rallied 1.9% and the S&P 500 gained 1.8%. Target climbed 4.3%, as upbeat chain-store sales data lifted retailers.

 

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Dow Climbs 183 Points

Constellation Brands jumped 9% after beating analyst forecasts and raising its outlook.

 

 

 

Treasuries and Commodities

Bonds extended their losing streak to a 3rd day. 10-year notes fell 28/32 to yield 1.99%, and 30-year notes slumped 2 6/32 to yield 2.95%. UK bonds closed little changed following the announcement of another round of central bank easing.

 

Energy posted strong gains, led by gasoline futures, which rallied 4.3% to 2.6805. Oil climbed 3.6% to 82.58, and natural gas gained .6% to 3.593.

 

Silver jumped 5.5% to 32.025 and copper surged 5.3% to settle at 3.272. Gold rose a more modest .8% to 1654.40.

 

 

 

Currencies

Following the ECB statement the Euro initially fell, pressured by Trichet’s weak outlook for the Euro-zone, but soon reversed to close up .7% to 1.3438. The Australian Dollar rallied 1.1% to .9758, extending Wednesday’s large move. The Pound closed down .1% at 1.5542, recovering from a drop down to 1.5272. The Canadian Dollar and Swiss Franc both rose .3%, and the Yen inched up .1%.

 

 

 

Economic Outlook

It is reassuring to see the European Central Banks take new efforts to help the economy, but the broader debt woes remain unaddressed, and threaten to undermine the health of the entire banking system.

 

Weekly unemployment claims came in at 401K, better than the 401K forecast, but higher than last week’s reading of 395K.

 

Friday’s key report will be non-farm payrolls, the most significant report in the monthly cycle. Analysts are expecting a gain of 55K jobs, compared to last month’s net gain of 0 jobs. The unemployment rate is expected to remain steady at 9.1%.

 

Also due are wholesale inventories and consumer credit.

[BinaryOptionStrategy]

Binary Options Report (Oct. 3- Oct. 7)

 

Binary Options Trading analysis written by David Frank

 

Markets

 

Despite a failed attempt at the end of Friday’s session to close the session out on a positive note, stocks finished higher for the week on some weak signs of recovery for the US economy.

 

The Dow was modestly lower but the S&P 500 posted losses approaching 1 percent, while the late day selloff pushed the Nasdaq down past 1 percent.

 

DJIA CHART

 

 

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FOREX

 

The Yen advanced a modest 0.22% against a weaker USD by the close of trade this week. Most of the losses for the Buck came on Monday when a sharp selloff in risk assets fueled haven flows into the safety of the Yen. The USD struggled to hold its ground for the remainder of the week as improved risk appetite saw both the Yen and the Dollar go on the defensive with traders favoring higher yielding assets like the Aussie and the Kiwi which were the top two performers against the dollar this week.

 

As expected the BoJ held interest rates on Friday, making no changes to its current monetary policy. However the central bank cited a firm warning regarding the increased risk of a global economic slowdown. Bank of Japan Governor Masaaki Shirakawa stated that, “The uncertain outlook for the global economy and instability in financial markets are underscoring the downside risks for Japan’s economy.” He went on to say that, “European financial markets remain tense, as there have been moves in money markets similar to those seen during the Lehman crisis. What is different is that the creditability of government debt has become the target of market worries, and this has resulted in a bigger impact.” The governor highlighted a growing concern that the sovereign debt crisis in Europe may soon have a significant impact on the global economy if left unchecked, and with Japan’s interest rates already near zero, officials have little left in their arsenal to help support the economy should the recovery falter.

 

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COMMODITIES

 

Oil prices rose slightly Friday and have come back from a 12-month low earlier this week.

 

Friday’s rise followed encouraging news about the economy in the US, which is the world’s largest oil consumer. The nation added jobs, slowly and weakly, last month, easing concerns about another recession. A stronger economy means more demand for energy.

 

Crude climbed 39 cents to end the day at $82.98 a barrel in New York. It rose from $75.67 Tuesday, the lowest level since September 2010. That low price was prompted by worries about Europe’s debt crisis.

 

Gold prices lacked clear direction on Friday after the latest reading on employment in the US showed better than expected job growth in September. However, more European credit downgrades kept the yellow metal volatile.

 

Gold for December delivery was down $15.90 to $1,637.30 at the Comex division of the New York Mercantile Exchange early on Friday afternoon before rebounding to a gain of $4.

 

Crude Chart

 

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/c1-300x123.png

 

 

EQUTIES

 

Home Depot and Wal-Mart led the blue-chip gainers, while BofA and JPMorgan lagged. Also, The latest developments in the Euro zone put pressure on US financials such as Goldman Sachs and Morgan Stanley. Citigroup also slumped after Raymond James cut its price target on the firm to $43 from $65.

[BinaryOptionStrategy]

Binary Options Report (Oct. 3- Oct. 7)

 

Binary Options Trading analysis written by David Frank - BinaryOptionStrategy

 

Markets

 

Despite a failed attempt at the end of Friday’s session to close the session out on a positive note, stocks finished higher for the week on some weak signs of recovery for the US economy.

 

The Dow was modestly lower but the S&P 500 posted losses approaching 1 percent, while the late day selloff pushed the Nasdaq down past 1 percent.

 

DJIA CHART

 

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/a1-300x123.png

 

 

 

 

FOREX

 

The Yen advanced a modest 0.22% against a weaker USD by the close of trade this week. Most of the losses for the Buck came on Monday when a sharp selloff in risk assets fueled haven flows into the safety of the Yen. The USD struggled to hold its ground for the remainder of the week as improved risk appetite saw both the Yen and the Dollar go on the defensive with traders favoring higher yielding assets like the Aussie and the Kiwi which were the top two performers against the dollar this week.

 

As expected the BoJ held interest rates on Friday, making no changes to its current monetary policy. However the central bank cited a firm warning regarding the increased risk of a global economic slowdown. Bank of Japan Governor Masaaki Shirakawa stated that, “The uncertain outlook for the global economy and instability in financial markets are underscoring the downside risks for Japan’s economy.” He went on to say that, “European financial markets remain tense, as there have been moves in money markets similar to those seen during the Lehman crisis. What is different is that the creditability of government debt has become the target of market worries, and this has resulted in a bigger impact.” The governor highlighted a growing concern that the sovereign debt crisis in Europe may soon have a significant impact on the global economy if left unchecked, and with Japan’s interest rates already near zero, officials have little left in their arsenal to help support the economy should the recovery falter.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/b1-300x168.png

 

 

COMMODITIES

 

Oil prices rose slightly Friday and have come back from a 12-month low earlier this week.

 

Friday’s rise followed encouraging news about the economy in the US, which is the world’s largest oil consumer. The nation added jobs, slowly and weakly, last month, easing concerns about another recession. A stronger economy means more demand for energy.

 

Crude climbed 39 cents to end the day at $82.98 a barrel in New York. It rose from $75.67 Tuesday, the lowest level since September 2010. That low price was prompted by worries about Europe’s debt crisis.

 

Gold prices lacked clear direction on Friday after the latest reading on employment in the US showed better than expected job growth in September. However, more European credit downgrades kept the yellow metal volatile.

 

Gold for December delivery was down $15.90 to $1,637.30 at the Comex division of the New York Mercantile Exchange early on Friday afternoon before rebounding to a gain of $4.

 

Crude Chart

 

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/c1-300x123.png

 

 

EQUTIES

 

Home Depot and Wal-Mart led the blue-chip gainers, while BofA and JPMorgan lagged. Also, The latest developments in the Euro zone put pressure on US financials such as Goldman Sachs and Morgan Stanley. Citigroup also slumped after Raymond James cut its price target on the firm to $43 from $65.

[BinaryOptionStrategy]

Fundamental Analysis and the Week Ahead

 

Binary Options Trading analysis written by David Frank - BinaryOptionStrategy

 

 

ECONOMIC NEWS

 

Fitch slashed Spain’s rating to AA- from AA+, citing risks of slow growth and high regional debt, and Italy’s to A+ from AA-, adding the outlook on its long-term ratings is negative. Moody’s also downgraded 12 UK financial institutions. The credit rating firm saying it sees a decreased likelihood of government support for smaller institutions in particular but specifying the move does not reflect a deterioration in the financial strength of the banking system.

 

Italy’s downgrade follows an earlier cut this week by Moody’s.

 

Out of the US, the monthly non-farm payrolls number grew more than expected in September, jumping 103,000 in September, but the unemployment rate remained steady at 9.1 percent. Economists had expected a total of 60,000 jobs to have been created.

 

 

 

THE WEEK AHEAD

 

MONDAY: Columbus Day—Markets open, banks closed

 

TUESDAY: NFIB small biz optimism index, 3-yr note auction, FOMC minutes, P&G shareholder mtg

 

WEDNESDAY: Weekly mortgage apps, 10-yr note auction, Fed’s Plosser speaks, Fed’s Pianalto speaks, Oracle shareholders meeting

 

THURSDAY: International trade, jobless claims, oil inventories, 30-yr bond auction, Fed’s Kocherlakota speaks; Earnings from JPMorgan

 

FRIDAY: Retail sales, import/export sales, consumer sentiment, business inventories, new iPhones available; Earnings from Mattel

[BinaryOptionStrategy]

Binary Options Analysis – US Payroll Data Stronger than Forecast

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

 

Equities

 

On Friday, Asian markets closed higher ahead of US payroll data, boosted by a boost in liquidity by the ECB. The Nikkei advanced 1% to 8606, the Kospi rallied 2.9%, and the ASX 200 climbed 2.3%. Hong Kong’s Hang Seng jumped 3.1% to 17707, while China’s Shanghai Composite remained closed for a holiday, but will reopen on Monday.

 

US payroll data was stronger than forecast, as the economy gained 103K jobs, sending European stocks higher in the afternoon. European indexes rose modestly, closing at a 5-week high. The CAC40 rose .7%, the DAX gained .5% and the FTSE edged up .2%. Mining and resource stocks led the gains, as the sector advanced 1.4%.

 

Despite the upbeat payroll news, US markets closed down in a volatile session. The Nasdaq slid 1.1%, the S&P lost .8%, while the Dow fared better, closing down just 20 points at 11103.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/oct-10-sp-300x136.png

S&P Closes Down After Volatile Session

Financial firms fell sharply as Goldman Sachs, Citigroup, and Morgan Stanley all fell more than 5%.

 

Sprint shares tumbled nearly 20% after announcing it would stop supporting devices which use the Clearwire networks. Clearwire’s shares plunged 32%.

 

 

 

Treasuries and Commodities

Bonds fell, as upbeat payroll data pushed off the likelihood of further Fed easing. 10-year notes fell 25/32 to yield 2.08%, and 30-year notes skidded 1 14/32 to yield 3.02%.

 

Energy closed mixed, as crude oil rose .5% to 82.93, while natural gas slumped 3.3% to 3.481 and gasoline fell 1.4% to 2.6476.

 

Silver dropped 3.2% to 30.993 and gold slipped 1.1% to 1635.80. Copper gained .8% to 3.2725.

 

 

 

Currencies

Currencies closed mixed after a volatile session. The Euro slipped .4% to 1.3378 while the Pound rose .8% to 1.5562. The Swiss Franc eased .7% to 1.0785, and the Yen closed flat at 76.69.

 

 

 

Economic Outlook

Wholesale inventories rose .4%, less than expected.

 

Moody’s downgraded 12 UK financial firms, and Fitch cut ratings on Italy and Spain.

 

Monday is Columbus Day. Banks will be closed, but the markets are open. No major economic reports are scheduled for Monday.

 

Earnings season will begin next week, with Alcoa reporting on Monday.

[BinaryOptionStrategy]

Binary Options Analysis – Equities Soar, Dollar Slumps on European Pledge

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

 

Equities

 

Leaders from France and Germany said that they are working on a plan to comprehensively address the troubles facing the region, which they will present in early November. After months of inaction, potential signs of progress helped boost global stocks.

 

Asian markets closed mostly higher, as the Kospi rose .4%, and the ASX 200 gained .9%. The Hang Seng overcame early losses to close up fractionally. China’s Shanghai Composite reopened after a lengthy holiday, closing down .6%. Japanese markets were closed.

 

Leaders from France and Germany said that they are working on a plan to comprehensively address the troubles facing the region, which they will present in early November. After months of inaction, potential signs of progress helped boost global stocks.

 

European markets rallied for their 4th straight day, led by the DAX which climbed 3%. The CAC40 gained 2.1% and the FTSE rose 1.8% in a broad rally.

 

US stocks posted impressive gains, particularly in the last hour of the day. The Dow jumped 330 points to 11433, the Nasdaq rallied 3.5%, and the S&P 50 0advanced 3.4%. Over the past 5 days, the Dow has climbed 1028 points from its low of 10404.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/oct-11-dow-300x135.png

Dow Soars More than 300 Points

Financial stocks rallied, with many issues gaining more than 6%.

 

Apple announced that it has received more than 1 million orders for the new iPhone 4S. Apple shares gained 5.1% to 388.81.

Treasuries and Commodities

 

The bond market was closed for Columbus day. Overseas, bonds fell sharply as investors poured into equities.

 

Commodities rallied strongly, buoyed by the upbeat market sentiment. Crude oil closed up 3.5% at 85.90, natural gas gained 2.4% to 3.565, and gasoline settled at 2.7185, up 2.7%.

 

In metals, gold climbed 42.40 to 1678.20, silver rallied 3.6% to 32.12, and copper gained 3.2%.

 

 

 

Currencies

 

The Dollar tumbled against major world currencies as investors rushed to unwind short positions. The Swiss Franc was the biggest gainer, surging 2.5% to 1.1057. The Australian Dollar rose 2% to .9980, the Euro rallied 1.9% to 1.3638, and the Canadian Dollar climbed 1.2% to 1.0272. The Lagging behind, the Pound rose .6% to 1.5660 and the Yen closed flat.

 

 

 

Economic Outlook

While investors cheered progress on the European front, no plan was announced, and no problems have yet been solved, suggesting this was primarily a short covering rally, rather than a true market turn.

 

Tuesday’s reports will include the minutes from the last FOMC meeting, and the NFIB small business optimism index. Earnings are due from Alcoa, kicking off earnings season.

[BinaryOptionStrategy]

Binary Options Analysis – Asia Rallies, West Ends Mixed as Rally Stalls

 

Binary Options Trading analysis written by Bradley Welcher - BinaryOptionStrategy

 

 

Equities

On Tuesday, Asia rallied, catching up to the West’s significant rally on Monday. The Nikkei returned from a holiday to climb 2%, closing at 8774, and the Kospi advanced 1.6% to 1795. In China, the Hang Seng climbed 2.4%, while the Shanghai Composite ticked up just .2%, weighed down by energy companies, after China announced a tax on domestic oil and gas sales. In Australia, financial shares lifted the ASX 200 by .6% to a 5-week closing high.

 

After 4 days of big gains, European shares closed mixed. The FTSE slipped fractionally, the CAC40 declined .3%, and the DAX rose .3%, as Slovakia pushed off a vote over expansion of the ESFS bailout fund. After the US markets closed, the vote failed to pass, but analysts expect it to pass over the next few days, as the coalitions reform.

 

In the US, tech shares rallied, lifting the Nasdaq .7% to 2583, while the Dow eased 17 points to 11416. After the close, Alcoa reported earnings that missed profit forecasts, while revenue grew, as higher commodity prices hurt profits.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/oct-12-nasdaq-300x138.png

Nasdaq Overcomes Early Weakness to Close Higher

Ninety Nine Cent Stores rallied 4.4% on news in would be purchased by a private equity firm.

 

 

 

Treasuries and Commodities

Bonds continued to drop, as 10-year notes fell 22/32 to yield 2.16%, and 30-year notes slumped 1 28/32 to yield 3.11%. A $32 billion auction of 3-year notes had a high-yield of .544% and bit-to-cover ratio of 3.3.

 

Crude oil closed flat, while natural gas climbed 1.7% to 3.601, and gasoline rose 1.8% to 2.745.

 

Metals closed mostly lower, led by copper, which dropped 2.5% to 3.2835. Gold eased .3% to 1666.30, while silver ticked up .4% to 32.095.

 

Agricultural futures posted huge gains, after Russia announced it may tax exports of grain. Wheat soared 8.1% to 660.75, corn surged 6.6% to 645, and soybeans jumped 4.9%.

 

 

 

Currencies

 

The currency markets closed little changed, as the Dollar’s early gains evaporated in the afternoon. The biggest mover was the British Pound, which fell .5% to 1.5580, followed by the Swiss Franc which closed down .4% to 1.1016. The Euro, Australian Dollar, and Yen all closed within .1% of their previous close.

 

 

 

Economic Outlook

The Small Business Confidence Index rose for the first time in 7 months, but came in below estimates.

 

Wednesday’s reports will include weekly oil inventories, and the Fed’s FOMC minutes (rescheduled from Tuesday).

 

Earnings are due from PepsiCo and Enzo BioChemicals.

[BinaryOptionStrategy]

Binary Options Report (Oct. 10- Oct. 14)

 

Binary Options Trading analysis written by David Frank - BinaryOptionStrategy

 

 

Markets

 

The Dow Jones rallied 166.36 points, or 1.45 percent, to close at 11,644.49, finishing firmly in positive territory for the year.

 

The S&P 500 jumped 20.92 points, or 1.74 percent, to close at 1,224.58, its best week since Jul. 2009. The NASDAQ rose 47.61 points, or 1.82 percent, to end at 2,667.85, also higher for 2011.

 

DJIA CHART

 

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/a2-300x123.png

 

 

FOREX

 

The Canadian Dollar remains tied to the trends in market wide risk sentiment, with the price showing a strong correlation to the S&P 500 stock index. Looking ahead, this puts the spotlight on the evolution of the EU debt crisis as well as economic data out of the US, with the health of the world’s top economy seen as a proxy for the state of the global recovery. On the former theme, the tone will be set by the outcome of the weekend’s G-20 finance ministers’ meeting. For the latter, a busy docket of scheduled releases on the economic and corporate earnings calendars will be a tell all.

 

Hopes were running high ahead of the weekend G-20 summit amid rumors that policymakers will be discussing plans for an expansion of the IMF’s role in managing the EU crisis by using it as a vehicle to assist emerging economies including China and Brazil to help relive funding pressures in debt strapped EU nations. Newswires suggest a final announcement on the scheme would wait until the G-20 meeting on November 3 to account for whatever EU officials produce at their own sit down on October 23. However, traders are hopeful that something supportive would surface.

 

USDCAD Chart

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/b2-300x123.png

 

 

 

COMMODITIES

 

Benchmark crude rose $2.57, or 3.1 percent, to end at $86.80. That’s the highest level since Sept. 20.

 

Brent crude, which is used to price oil from foreign countries, rose $3.57, or 3.2 percent, to finish at $114.68 in London.

 

Prices jumped after China said its inflation rate dropped last month. This giving Chinese leaders room to further stimulate the country’s economy without overheating it.

 

Gold closed up $40 on the weekk. Today it closed above the 20 day MA for the first time since mid-September. The key next week will be a close above $1692. A fail of that, look for a trade back to $1600.

 

 

 

Gold Chart

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/c2-300x123.png

 

 

 

 

EQUTIES

 

Ubiquity Networks soared more than 15 percent in their market debut after the wireless equipment maker broke a two-month lull in the IPO market. Also, on the earnings front, Mattel posted sales that topped estimates. However the toy company’s profit only came in line with expectations. This was due to higher costs of making and packaging toys.

[BinaryOptionStrategy]

Fundamental Analysis and the Week Ahead

 

To read the Weekly technical report click here

 

ECONOMIC NEWS

 

US retail sales jumped 1.1 percent in September, rebounding at their fastest pace in seven months. This was according to the Commerce Department. Economists had expected a gain of 0.7 percent. Sales growth during August was revised up to 0.3 percent.

 

Consumer sentiment unexpectedly dipped in early October, falling to 57.5 from 59.4 in the final September report. Economists expected the reading to rise to 60.2.

 

US import prices unexpectedly gained 0.3 percent in September, logging their largest increase in five months. This comes amid higher fuel and food costs, according to the Labor Department. Economists had expected prices to decline 0.3 percent last month.

 

THE WEEK AHEAD

 

MONDAY: Empire state mfg survey, industrial production, Fed’s Lacker and Evans speak; Earnings from Citigroup

 

TUESDAY: PPI, treasury international capital, housing market index, Bernanke speaks; Earnings from BofA

 

WEDNESDAY: Weekly mortgage apps, CPI, housing starts, Fed’s Rosengren speaks, oil inventories, Fed’s Beige Book

 

THURSDAY: Jobless claims, existing home sales, Philadelphia Fed survey, leading indicators, Fed’s Bullard and Kocherlakota speak

 

FRIDAY: Fed’s Kocherlakota speaks, 2011 Dodd-Frank Rulemaking Deadline

 

Binary Options Trading analysis written by David Frank

[PipQueen2]

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[baraya]

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[BinaryOptionStrategy]

Binary Options Report (Oct. 17- Oct. 21)

 

Binary Options Trading analysis written by David Frank - BinaryOptionStrategy

 

Markets

 

Stocks ended near session highs Friday following news that a group of Euro zone finance ministers have approved the next round of aid for Greece.

 

The Dow Jones jumped 267.01 points, or 2.31 percent, to finish at 11,808.79, firmly in positive territory for the year.

 

The S&P 500 rose 22.86 points, or 1.88 percent, to end at 1,238.25. The Nasdaq gained 38.84 points, or 1.49 percent, to close at 2,637.46.

 

DJIA CHART

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/a3-300x123.png

 

 

 

FOREX

 

The Euro traded higher ahead of what could be a dire week for currencies and financial markets. European leaders, the International Monetary Fund, and members of the European Central Bank will meet over the weekend and on Wednesday to determine the fate of the debt stricken Greek economy.

 

Fundamental analysis plainly favors Euro weakness and further fiscal turmoil is essentially guaranteed across the EMU. The numbers are scarey. Economists predict that Greece will have total debt worth a massive 160+ percent of its Gross Domestic Product by the end of the fiscal year. In real terms this means that each percentage point paid in bond yields represents over 1.6 percent of the total economy.

 

Obviously Greece would never accept such high interest rates for funding. This likewise implies that its government will depend on indefinite aid from Europe and the IMF. The previous wave of fresh fiscal aid was contingent on the fact that private creditors would forgive 21 percent of the Net Present Value of Greek debt. At the time this seemed enough to quell market fears of complete insolvency, but in real terms it would barely make a dent in Greece’s extremely high sovereign debt ratio.

 

 

 

EURO Chart

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/b3-300x123.png

 

 

COMMODITIES

 

Gold finished more than $23 higher Friday to end a four session losing streak. This comes as lower prices and a weaker dollar helped entice investors back to the yellow metal. Howeve the metal still tallied a 2.8% loss for the week.

 

Gold for December delivery added $23.20, or 1.4%, to settle at $1,636.10. It has traded as high as $1,649.60 and as low as $1,612.80.

 

Crude for December delivery, the new front month contract, added $1.33, or 1.6%, to settle at $87.40. Prices ended the week with a 0.7% gain.

 

Gold Chart

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/c3-300x123.png

 

 

EQUTIES

Ford rallied after Standard & Poor’s raised its rating on the automaker by two notches.

 

Seagate Technology jumped more than 20 percent after Needham & Co. said the firm is better positioned to emerge from widespread flooding in Thailand than its rival Western Digital. The brokerage also reiterated its “strong buy” rating on Seagate.

 

And Eastman Kodak rose after a report that said the camera company is in talks with Cerberus & Silverpoint for up to $900 million in rescue financing.

[BinaryOptionStrategy]

Fundamental Analysis and the Week Ahead

 

Binary Options Trading analysis written by David Frank - BinaryOptionStrategy

 

ECONOMIC NEWS

 

It was announced that policymakers would make progress on a solution to the Euro zone debt crisis in the coming days.

 

France and Germany said in a joint statement that European leaders would discuss a global solution to the crisis on Sunday. No decisions would be adopted before a second meeting by Wednesday at the latest.

 

THE WEEK AHEAD

 

MONDAY: Chicago Fed national activity index

 

TUESDAY: S&P/Case-Shiller home price index, consumer confidence, FHFA house price index, 2-yr note auction, USDA food prices outlook

 

WEDNESDAY: Weekly mortgage applications, durable goods orders, new home sales, oil inventories, 5-yr note auction

 

THURSDAY: GDP, jobless claims, pending home sales index, 7-yr note auction, Motorola begins pre-orders for Droid Razr on Verizon;

 

FRIDAY: Personal income & outlays, employment cost index, consumer sentiment

[BinaryOptionStrategy]

Binary Options Analysis – Concerns over European Bailout Weigh on Stocks

 

http://www.binaryoptionstrategy.com/weekly-news/binary-options-report-oct-17-oct-21.html"]click here[/url]

To read the Weekly fundamental analysis click here

 

Equities

 

Doubts over the Euro zone’s rescue efforts sent Asian stocks lower. The Nikkei fell 1% to 8682, and the ASX 200 sank 1.6%. Korea’s Kospi slumped 2.7% although heavyweight Samsung Electronics gained 2.4% on news Seagate would purchase Samsung’s hard drive business. In China, the Hang Seng shed 1.8% and the Shanghai Composite dropped 1.9%

 

Rumors that the European Summit would be delayed sent European markets tumbling, although the report was later denied. The DAX closed down 2.5%, the CAC40 dropped 2.3%, and the FTSE lost 1.2%. The banking sector lost 4%, and resource stocks lost more than 3%.

 

US stocks closed mixed, as an afternoon rally helped erase early losses. The Dow rose 37 points to 11542, the S&P 500 gained .5%, while the Nasdaq lost .2%.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/oct-21-dow-300x137.png

Dow Closes Higher in Choppy Trading

 

After the close, Microsoft reported earnings which were inline with analyst expectations of 68 cents per share. Revenue was slightly higher than expected.

 

 

 

Treasuries and Commodities

 

Bonds closed modestly lower. 10-year notes eased 6/32 to yield 2.18%, and 30-year notes fell 24/32 to yield 3.21%.

 

Copper tumbled 6% to 3.0575 as weak economic forecasts slammed the industrial metal. Gold slumped 2% to 1612.90m and silver dropped 3.1% to 30.281.

 

News of Gadhafi’s death had little impact on the energy market. Crude oil closed down .22 to 86.07, while natural gas rallied 1.2% to 3.63.

 

 

 

Currencies

 

The Swiss Franc rallied 1% to .8938, as expectations that the Swiss National Bank would raise the EURCHF exchange floor from 1.20 to 1.25 weakened. The Euro and Pound both rose .2%, and the Australian Dollar inched up .1% to 1.0244. The Yen closed flat at 76.84.

 

 

 

Economic Outlook

 

Weekly jobless claims fell to 403K, slightly better than expected. The Philly Fed manufacturing index unexpectedly rose to 8.7 from last month’s -17.5 reading. On a weaker note, existing home sales were slightly weaker than expected at 4.91M, down from last month’s 5.06M.

 

On Friday, earnings are scheduled for GE, Honeywell, McDonalds, Schlumberger, and Verizon.

 

 

 

 

Binary Options Trading analysis written by Bradley Welcher

[BinaryOptionStrategy]

Binary Option Analysis – Western Markets Rally on European Hopes

 

To read the Weekly technical report click here

To read the Weekly fundamental analysis click here

 

Equities

 

Asian markets traded mixed ahead of the weekend’s European summit. The Nikkei closed down fractionally, and the ASX 200 edged down .1%. Korea’s Kospi rallied 1.8%, as LG Display surged 7.8% despite posting a loss. In China, the Hang Seng rose .2%, while the Shanghai Composite slipped .6% to a 31-month low.

 

European indexes rallied, on hopes for a European bailout deal. The DAX jumped 3.6%, the CAC40 gained 2.8%, and the FTSE climbed 1.9%.

 

US markets continued the rally, as the Dow soared 267 points to 11809. The Nasdaq rose 1.5% and the S&P 500 gained 1.9%, while the VIX dropped 10% to 31.32.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/oct-24-dow-300x134.png

Dow Soars 267 Points

 

 

 

Honeywell shares rallied 5.8% after reporting strong earnings and lifting its outlook. GE shares slipped 1.9% on earnings that were in line with forecasts.

 

Seagate share jumped 28% on expectations the hard drive maker won’t suffer as much as rival Western Digital from the floods in Asia.

 

 

 

Treasuries and Commodities

 

Bonds traded lower as investor optimism spiked. 10-year notes eased 8/32 to yield 2.22%, and 30-year notes fell 31/32 to yield 3.26%.

 

Metals gained, led by copper which rallied 5.4% to 3.223. Silver rose 3% to 31.193, and gold gained 23.20 to 1636.10.

 

Crude oil closed up 1.6% to 87.40, while natural gas ended flat.

 

 

 

Currencies

 

The Japanese briefly touched a record high against the dollar in the early morning, hitting 75.78, before recovering. The pair closed at 76.29, up .7%. The Swiss Franc jumped 1.3% to 1.1333, and the Australian Dollar rallied 1.4% to 1.0370. The Pound closed up 1%, and the Euro settled with a gain of .8% at 1.3896.

 

 

 

Economic Outlook

 

Monday’s sole reports will be the Chicago Fed’s National Activity Index.

 

Earnings are scheduled for Amgen, Caterpillar, Netflix, and Texas Instruments.

 

Binary Options Trading analysis written by Bradley Welcher

[BinaryOptionStrategy]

Binary Options Analysis – Chinese Growth Lifts Commodities and Equities

 

To read the Weekly technical report click here

To read the Weekly fundamental analysis click here

 

Equities

 

Manufacturing PMI data from China rose for the first time in 3 months, boosting the region’s indexes. In Greater China, the Shanghai Composite advanced 2.3% and the Hang Seng jumped 4.1%. Around the region, the Nikkei rose 1.9% to 8844, the Kospi rallied 3.3% and the ASX 200 gained 2.7%.

 

European markets extended their gains from Friday. The CAC40 gained 1.6%, the DAX rose 1.4%, and the FTSE closed up 1.1%. Materials stocks led the advance, as the sector rallied 5.4%, encouraged by China’s PMI data.

 

In the US, stocks continued to rise. The Nasdaq was the biggest gainer, climbing 2.4%, while the Dow rose 105 points and the S&P 500 advanced 1.3%. The VIX dropped more than 6% to settle at 29.26.

 

Caterpillar shares climbed 5% after reporting strong earnings.

 

A flurry of M&A activity was announced on Monday. Cigna announced it will buy Healthspring for $3.8 billion, sending Healthspring shares up 34%. Oracle said it will buy Rightnow Technologies for $1.5 billion. Mattel revealed it will buy HIT Entertainment for $680 million.

 

 

 

Treasuries and Commodities

 

Bonds closed with slight losses as 10 and 30 year notes both slipped 2/32, to yield 2.23% and 3.27% respectively.

 

Commodities traded mostly higher, thanks to China’s upbeat data. Crude oil jumped 4.6% to 91.39, and copper posted an impressive 7% gain, closing at 3.4495. Gold advanced 17.20 to 1653.30 and silver settled at 31.65, up 1.5%.

 

http://www.binaryoptionstrategy.com/wp-content/uploads/2011/10/oct-25-copper-300x141.png

Copper Prices Start to Recover

 

 

 

Currencies

 

The Australian Dollar jumped 1% to 1.0474, thanks to a recovery in commodity prices. The other major currencies rose modestly against the Dollar. The Euro and Pound both inched up .2%, and the Canadian Dollar rose .3% to 1.0035.

 

 

 

Economic Outlook

 

Tuesday’s reports will include the Case-Shiller home price index, the FHFA home price index, and consumer confidence.

 

Earnings are due from 3M, UPS, Amazon, DuPont and Deutsche Bank.

 

Binary Options Trading analysis written by Bradley Welcher