Market Commentary-December 8

Futures market were all trading positively in front of the cash session open, however, shortly afterward we saw the selling demand returning. Following fluctuating at the beginning of the trading session, stocks shifted significantly lower throughout the trading day on Friday. 

The primary averages revealed a significant move back to the downside following the recovery coming from earlier lack of strength observed in the previous trading session. During one stage DJI has been off more than 650 points, however, did manage to raise its way off of these ranges into the closing session.

The main averages rose off their most severe price levels entering the final hour although remained solidly negative. The S&P500 slumped 63 points or 2.3%  to 2633, the DJI  plunged 559 points or 2.2%  to 24389, while the Nasdaq nosedived 219 points or 3.1% to 6969.

With all the extreme decline on the session, the main averages migrated significantly lower for the week. The Nasdaq plummeted by 4.9%, while the S&P500  and the DJI  nosedived by 4.6% and 4.5%, respectively.

The sell-off on Wall Street followed as soon as the Labor Department's closely looked at month to month Non-Farm job report showed USA employment improved by significantly less than anticipated within the prior month of November.

The Labor Dept stated Non-Farm payroll numbers increased by 155,000 jobs throughout November following rising by a downwardly adjusted 237,000 workforce in the month of October.

Nevertheless, the talk is of a likely European liquidation move, and also peripheral derivatives: Algorithmic trading’s ETF’s, etc. have been held accountable as numerous who are not able to reason for this weakness.

The following equity selling has seen a 1% rally in the Gold market, which now will play the $1275 level (See  Gold Chart below). Additionally, worthy of a quick mention is the Bitcoin price which continues to drop. On Friday we were treated to an additional 10% slide which in turn puts it at post time around the $3200  level. 

Eurozone attempted to recover of Thursday's numbers, however, was impeded by yet much more Wall Street equity weakness. There are lots of talks that this might be internationals selling American markets in front of year-end. It might be a good reason why foreign currencies have held it up against the US Dollar as profits are brought in a home to augment bad domestic results.

An important upcoming week next week for, Federal Reserve, Brexit, Inflation numbers as well as the latest coming from the European Central Bank and also the plan for 2019’s QE (Quantitative Easing) program - if ever!

Gold Chart

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