DOW Jones Market High – 21 Dec 2016

DOW Jones Market High – 21 Dec 2016


By the end of the year markets tend to push in the direction of the trend, so we think that is not that wise to go against the trend (bullish on USD and equity market , bearish on gold and bonds).

Financial news are all about Dow Jones how close it is 20,000 level. Reading market speculationis on Dow Jones are not going to help your trading performance and profits, either Dow moves beyond 20K and 30K, it is pointless to depend on.

What a trader should focus at the moment is not the level of Dow but to weight market expectations from Trump’s upcoming presidency and pay attention to huge political issues that faces Europe in combination with a huge wave of terrorism, unemployment and populism, the huge Chinese debt, the geopolitical tensions and uncertainty in Middle East countries.

After the latest terror attack in Berlin, Islamic state claims responsibility for the attack while the terrorist is still not arrested. The recent terror attack in Berlin will damage Merkel’s popularity and will help AfD to gain momentum. Despite the recent uncertainty after the terror attacks, gold fails to gain. This should not be taken as a surprise as we have noticed that gold was also weak during Russian-Ukrainian tensions, terror attacks in Paris etc.

Gold has fallen during the last 30 years to move higher during periods of political uncertainty. In past decade, gold has more correlation with changes in monetary policy than any other asset.

Daily Key points:

• ECB’s Rimsevics says QE has failed to substantially boost the Eurozone economy
• USD continue to move on 14 years high.
• ECB Chief Economist Praet: “We see moderate but strengthening growth”
• USD/JPY up over 16% in three months
• Crude Oil: hit new 52-week closing highs today.
• Turkish consumer confidence pulls back sharply
• French producer price deflation eases in November

Daily Economic calendar:
Country Event Importance Previous Expectations Follow Times
USA Existing Home Sales Medium 5.6M 5.52M USD 17:00
OIL Crude Oil Inventories Medium -2.6M -2.4M OIL 17:30