Trading Market Commentary August 17 2017


You've probably noticed it by now: global stock markets volatility has recently all but faded away. This brings up a fundamental question for every trader and investor: Has the markets created a long-term plateau of low volatility or simply is the present period of low volatility just the tranquility ahead of the upcoming financial storm?

The Wall Street

American markets were weaker from the opening bell, so most of the traders knew we had been set for a trading day where big players will be on the lookout for bids. As the trading session moved on, nervousness increased and sentiment flipped; with market segments at over-stretched ranges, it had been a bit surprising that market end the trading day at the lows. With VIX (Chicago Board Options Exchange (CBOE) Volatility Index), that has begun an excellent run getting up 28% on Thursday, with the final trade observed just to the north of Sixteen level. 

Speculation has been used as a reason early in the trading that Gary Cohn (Trump's top economic advisor ) has resigned, however, this ended up being quickly rejected however this did not boost the market spirits. The market has witnessed continuous selling all day long and looks as the irrational trading season has started. Following the close, we pick up news that the intention to have a national infrastructure advisory panel appears to have been shelved.

With all the sell-off on the day, the S&P500 fallen to its lowest closing level in more than a month, slouching down 38.10 points (1.5%) to 2,430.01. The other Indexes ended the session within their worst price levels of the day. The DJ (DowJones) lost 274.14 points or (1.2%) to 21,750.73, the NASDAQ dropped 123.19 points (1.9%) to 6,211.91. However, we have witnessed futures fall far more towards the close of the day session. 

European Markets

In Eurozone, it took time for the stock markets to roll-over and as we began to watch prices decline in the US market on numerous bits of news, and that was, in fact, all it would take. Apparently, the trigger point was the president's Trump disbanding the Manufacturing Council as well as Policy Forum.

The ECB (European Central Bank) minutes reported a concern within the developing strength of the Euro Dollar, and therefore we had a correction in Forex market which in all probably helped to force several market makers to react. Eurozone stocks closed about their lows for the session and then passing the batten over to the Wall Street. Meanwhile, the U.K.'s FTSE100 Index, as well as the French CAC40 Index both, fell by 0.6%t, and the German DAX30 Index declined by 0.5%.

Asia-Pacific Market

Federal Reserve minutes ended up being the main talk of the Asian-Pacific region, and early on a session and the split decision the stock markets had not expected much. Somewhat more doubt continues to be tossed into the mix which in turn results in doubtfulness by taking some money off of the table. 

Toss in the Trump disbanding both Policy Forum and the Manufacturing Council, and questions begin to get asked of whether or not all this may derail the slated reforms. In Asian trading time, the US Dollar encountered some strength however with the safe-haven JPY currency once again was taking it back to about the109 level. 

The Japan Nikkei225 drifted a down by 0.1%, while China's Shanghai Composite Index rose by 0.7%, and South Korea's KOSPI did better going plus 0.6% as the news headlines remained low-key, nonetheless all Indexes have undergone suffering in late US trading session. 

Inside the metal market, Yellow metal managed to support $1281 level early session but has moved upwards toward the close last seen at plus $10, approaching close to our short entry of $1290.

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