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Futures Trade Desk- Daily Global Market Review

Client Note

Daily GlobalMarket Review


Commodity Update

Mixed Commodity trends that are over-bought may create intra-day short reversals, but seem unlikely to change the overall trend. The mid-term Commodity outlook remains bullish in light of heightened Middle Eastern tensions, and erratic Government bond auctions.

Gold: Sup 1582 Res 1632 Neutral 1608. Silver: Sup 28.40 Res 30.05 Neutral 29.25. Oil: Sup 101.10 Res 104.80 Neutral 102.95.

 

Equity/Dollar Index Update

Mixed Equity Indices trends that have neutral momentum reads may create intra-day short reversals that could change the overall trend. The Equity Indices outlook is very mixed going into Earnings Season that gets underway with Alcoa reporting on Jan 9th. 

Long Dollar Index trends that are over-bought may create short intra-day reversals, but seem unlikely to change the overall trend. The USD outlook is very mixed, and moving inversely to Equity Indices trade, but will be bought to support inter-bank liquidity if bond auctions fail.

S&P500: Sup 1256 Res 1284 Neutral 1270. Dax: Sup 6015 Res 6210 Neutral 6135. DXY: Sup 79.50 Res 81.10. Neutral 80.30.

 

Currency Pair Update

Very mixed Currency trends that carry neutral momentum reads may create intra-day reversals, but seem unlikely to change the overall trend. The Currency outlook remains mixed, with sustainable USD buying only being seen on days of heavy Equity Indices selling. Major currency values have not changed too much in 12 months.

EUR: Sup 1.2795 Res 1.3050 Neutral 1.2970. GBP: Sup 1.5535 Res 1.5715 Neutral 1.5625. JPY: Sup 76.50 Res 76.95 Neutral 76.70.

 

Current Global Market Outlook

010512 GMR

When 4-hour chart trend and momentum reads are aligned across Equity Indices, Commodity, and Currency asset classes, a trending market is more easily achieved, and trade exposure and initial targets are generally increased.

When trend and momentum reads are not aligned, a choppy and overlapping period of trade is more easily achieved, and trade exposure and initial targets are generally reduced.

A long trend that is over-sold generally sets up for a long reversal off support. A short trend that is over-bought generally sets up for a short reversal off resistance.

Markets that are over-bought into a long trend, or over-sold into a short trend, can remain that way for a long time. Any positions that are taken against the 4-hour trend will have to absorb choppy and volatile price action.

 

 

 

 

Information, analysis and methodologies provided are for informational purposes only, obtained from sources believed to be reliable, and should not be used as a replacement for research by an individual investor or licensed investment professional. In no event should the content of this correspondence be construed as an express or implied promise, guarantee, or implication that profits or losses can be made or limited in any manner whatsoever. No guarantee of any kind is implied or possible where projections of future conditions are attempted.