Bobbys Corner-Open Market-December.30.2011

Good Morning:

The last day of trading for 2011 saw the Euro continue to stay weak.  The euro fell below 100 JPY for the first time since 2001.
The weakness in the euro will continue as investors have  concerns over the regions debt crisis-and the regions ability to work through this crisis.
Commodities are also looking to see their first drop since 2008-as copper,cotton and cocoa led the declines.  Concerns that the European debt crisis, and the slow down in China’s economy may slow demand for commodities.

Asian equity markets were mixed-Europe is higher as are US Futures.

HAVE A HAPPY AND HEALTHY NEW YEAR

Gold Strength Caps Off Steeply Bullish Week

Gold (daily chart) as of Friday (7/08/2011) has strengthened substantially for yet another day to cap off an entire week of bullish days. This significant strengthening occurs after price bounced off a strong confluence of support around 1475, which is a prior support/resistance level, a key 38.2% Fibonacci retracement of the last major bullish trend run, as well as the 100-period simple moving average. Currently, price action is approaching key resistance around 1550. In the event of a breakout above 1550, the most important resistance target immediately to the upside resides around the 1575-area all-time high. Downside support within the context of the current bullishness resides around the 1512 price region.

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

Bobbys Corner-Open Market-May.3.2011

Good Morning:

Commodities dropped for the 2nd day, equity markets are lower, and the USD rallied a bit overnight.
1 year US  Treasury yields fell to a record low-and US Futures are lower at this time.

After yesterday’s early knee jerk reaction to the death of Osama bin Laden, the markets are settling back in as they assess the impact of the May 1 death.  

India’s central bank rose interest rates .5%, which is higher than expected, as they look to tame inflation.
Japan was closed overnight for a public holiday.

Asian equity markets were mostly lower-as is Europe’s.  US Futures are also lower at this time.

Oil:$112.26                                                                         Gold:$1538.10

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.21.2011

Good Morning:

The USD saw more weakness overnight, posting across the board losses.
The Aussie jumped to a new high as better than expected PPI data and business sentiment reading helped lead the charge.
The Euro rose over 1.4640-but stabilized after IFO data should a slight decline for the 2nd month in a row.
GBP climbed easily  over the 1.6550 handle as UK retail sales printed better than expected.

 World equity markets rallied as earning lead the way.  Investors are feeling more confident-as earnings are helping the confidence of the global economies.

Commodities also rallied as gold hit an all time high of $1508.83/oz, and silver reached the highest price since 1980.
With sovereign debt concerns and a weaker dollar on the minds of investors-investors are seeking alternative investments like metals.

Please remember that after noon today (NY Time) when Europe goes home-the markets will be very volatile till next Tuesday-as the rest of the world (except the US and Japan) are on a long Easter holiday weekend.  Most of the world will be closed on Good Friday and Easter Monday.

Oil:$112.19                                                       Gold:$1507.80   

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-March 15.2011

Good Morning:

The crisis in Japan has worsened as the situation at the Fukushima nuclear plant is now looking like it is getting out of control.  The plant was rocked by 2 additional explosions this morning, as they struggle to alleviate a meltdown that would produce more radiation leaks.
This crisis along with the escalation of problems in the Middle Eat has added to exceptional price moves in stocks, commodities, currencies, shipping and most other financial instruments globally.
Oil dropped as the crisis in Japan fueled speculation that demand for crude will decline.
Gold, silver, copper and other industrial metals followed the markets and dropped too.
The Nikkei (Tokyo stock market) dropped over 10%-and the markets in Asia and Europe followed suit.
US Futures are down over 200 points at this time.

Oil:$97.70                                                  Gold:$1391.70

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Oct.14.2010

Good Morning:

I am writing again from Kuwait-and we will be heading to Qatar at the end of the week.

The USD hit a 15 year low versus the Yen and the lowest level against the Euro since January 2010.
A surprise move by the Monetary Authority of Singapore sent the dollar lower, bringing EUR/USD over 1.41 during Asia and early European trading.  The pair has now come back into the mid to upper 1.40 level.
Aussie and the Loonie also rose as commodities rallied. With the markets already accepting that the Fed’s monetary easing program is a done deal-market participants are awaiting the scope of the program.  The amount of the easing policy will certainly play a roll in how much the markets will continue to sell the greenback

Commodities rallied across the board, and Gold touched another record overnight.  Silver rose to the highest level since March 1980, and Oil rose.
Equity markets in Asia were  higher, and European markets are mixed at this time.

Oil:$83.39                                                             Gold:$1380.40

Today’s US Data:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-June.3.2010

Good Morning:

The JPY traded lower overnight as signs that the global economy is getting stronger-thus dampening the demand for the Japanese currency as a safe haven.  The JPY also declined due to the political changes going on in Japan. Prime Minister Hotoyama resigned and Finance Minister Kan is expected to fill his shoes, and Kan has already made comments that he wants the JPY to weaken-as a higher yen slows profits for exporters, who have lead Japan’s recovery. 

World equity markets rose, and US Futures are higher at this time.  Commodities also rallied, after GM and Ford announced higher than expected sales increases for May.

Oil:$73.25                                                       Gold:$1218.50   

Today’s data:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.13.2010

Good Morning:

The Euro was virtually unchanged in overnight trading.  Greece sold Treasury bills in the first debt auction since the EU and IMF pledged aid to alleviate Greece’s default.  The Euro has lost ground the last 3 months as Greece’s ability to contain their debt was in question.  The aid package that was offered to Greece is in the form of 15 billion euros from the IMF and up to 30 billion euros in 3 year loans from the EU.
GBP rose as positive news from the Office of National Statistics showed that exports surged-helping to cut their trade deficit.

World wide equity markets dropped, and US Futures are pointing to a lower opening this morning.
Oil fell for the fifth day-as did Gold and other metals.  Alcoa reported disappointing sales numbers, and speculation about the revaluation of the yuan is being downplayed by news out of China.

Oil:$83.63                                            Gold;$1153.60  

HAVE A GREAT DAY & GOOD LUCK

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