Market Commentary April 19, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

Most American market(s) ended in the green territory ahead of the extended Easter holiday weekend. The main Asia-Pacific equity markets had a red session on Thursday, while the main Eurozone markets had a mixed trading day yesterday. 

In Other Market News

In its advanced market effort to drive the world in extensive technology legislation, the brand-new European Union law could start to punish websites such as Twitter, Facebook, and others if terrorist organization content topic is posted for longer than sixty minutes

Amazon proclaimed they would close down its China business activity, effectively ceding the business to and Alibaba mega enterprises. The Amazon business will be closed in July, providing enough time for sellers employing the services to shift to other providers. The company does plan to stay in support “cross-border” sector - which means, importing products into China for regional customers.

Good Friday Market Closure Myths

This, being a four day (Five day for our European friends) trading week because American stock markets are closed for Good Friday. Each year, the Good Friday closing presents many false theories regarding why the markets are closed. Therefore, we attempt to clarify the Good Friday myths.

The 1987 crash that prompted the stock market to shut down on Good Friday: That story contends that the NYSE (New York Stock Exchange) opened the session on a Good Friday and the disastrous Black Friday crash happened. Hence, humbled and shaken, the NYSE Governors vowed never to open the exchange on a Good Friday ever again. Not true.  

With appreciation to the friendly people in the New York Stock Exchange archives, we are ready to establish several facts. Archive records explicitly show the New York Stock Exchange was closed on Good Friday dated back to 1864.

Before 1864 data records on the topic are a bit difficult to locate although there is a high possibility that the NYSE was closing its activity on Good Friday as far as back to 1793. By the way, the exchange was established on May 17th, 1792, therefore, Good Friday closure would have then passed that very year. 

Then there was a memorable Black Friday crash on Wall Street: however, it has initially been in the Gold market. It occurred wherein when the “cornering” on Gold metal collapsed which Jim Fisk and Jay Gould had created  - of course with the help of President Grant’s brother-in-law. 

That event happened on Sept 24th, 1869, a much later in the year for Good Friday scenario. One would also see from the search of the data records that the New York Stock Exchange was closed on Good Friday previous five years and presumably, much longer than that. 

Finally, for some unexplained fact, the New York Stock Exchange stayed open for business on three Good Fridays. Thus on April 8, 1898, the Dow Jones finished down a half point. That hardly indicates a crash. The second open on Good Friday session, April 13th, 1906 (BTW, that was a Friday the 13th) and third open on March 29th, 1907, the Dow Jones index did close in positive territory. 

Well, there you have it the myth is put to bed.

Bitcoin Market

The Bitcoin price crested at $5458 on Coinbase on April 10th. It is the highest price level since November 19th, 2018. Currently, Bitcoin is trading slightly over $5300. The gradual grind to the north appears following prices pulling back from ultimate overbought level, which by the way had threatened to weaken future coin rally tries.

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