Market Review, June 30, 2015

The drama in Greece reaches the peak moment.
Since yesterday and up to the end of the week, Greece decided that her local banks will not develop as well as the local stock market, when the day is a day on which the deadline for Greece to transfer 1.7 billion dollars to the IMF, otherwise Greece will become insolvent and will have no funding.

Yesterday, German Chancellor Angela Merkel argued that the dissolution of the Euro will lead to the disintegration of the whole continent.
Her words with the possibility that Greece will leave the Euro zone, led to a price declines in all markets worldwide.

The European stock markets posted the sharpest daily fall in eight months, Frankfurt dived by 3.6% and that was the sharpest daily fall since 2011, Paris fell by 3.7% and London fell by 2%.
The Wall Street stock markets fell by the sharpest rate since April 2014, and wiped out all the gains of the year.
The NASDAQ Composite fell by 2.4%, the Dow Jones fell by 2% and the S&P 500 fell by 2.1%.

The credit rating agency Standard & Poor’s lowered Greece’s credit rating to CCC minus, compared with CCC, and expects no real significant changes in Greece conditions.
Greece is expected to become insolvent within six months and the agency puts the chances of Greece staying in the Euro zone by 50%.

The contracts for WTI crude Oil closed yesterday at a three-week low.
The price of the Oil went down by 2.2% and closed at 58.3 dollars per barrel, after that sharp declines in world stock exchanges due to the financial crisis in Greece, intensified the fears of a slowdown in demand for energy.

As usual in times of crisis, the Gold serves as a safe haven and yesterday his price climbed to its highest level this week.
The Gold futures for delivery in August closed at 1,179 dollars an ounce, up 0.5% at the Mercantile Exchange in New York.

Yesterday afternoon, the Euro recovered from a month low against the US dollar, and from his decline against other major currencies also eased,against the backdrop of expectations that the European Central Bank (ECB) will succeed to contain the damage in case Greece will leave the Euro zone.

Trading Opportunity
FACEBOOK

The stock is in a clear upward trend.
Last week the stock broke up a resistance area, at around the level of 85.60.
After this break, we have seen a downward technical correction, in which the stock examined the hacking of the resistance area, which now serves as a support area.
Yesterday the price of the stock closed at a price level of 85.80, near the support area, as during the day the stock fell to the level of 85.73 but failed to break down the support.

facebook d 30.6.15

Our tendency is to look for CALL option trade.
The entry will be at the start of the US trading day, at 14:40.
The expiry will be to the end of the day, June 30 at 20:00.

Market Review, June 29, 2015

The uncertainty surrounding the fate of the negotiations for an agreement between Greece and international creditors exacerbated at the weekend and there is a great concern that Greece will have to reach insolvency next week.

The Greek Prime Minister Alexis Tsipras announced at the weekend that his government will hold a referendum on July 5 regarding the reforms and austerity measures demanded by the country’s creditors.

The Greek parliament approved the holding of the referendum, but the problem is that by the end of the month Greece must pay a debt payment to the IMF totaling more than 1.6 billion Euros.

Greece’s cash fund is empty and without the extension of the bailout program by the Euro zone she wont be able to pay her debts, therefore, the question arises whether the IMF would allow Greece to defer the payment of the debt to to a later date and thus save it from insolvency at the same time?

Meanwhile, the finance ministers of the Euro zone are preparing to formulate a plan of emergency measures designed to separate Greece from the rest of the Euro zone if Greece would reach to a insolvency.

This crisis has negatively affected the markets on Wall Street and last week the indices recorded price declines.
The Dow Jones fell by 0.4%, the NASDAQ fell by 0.7% and the S&P 500 fell by 0.4%.

US economic data released on Friday showed that consumer confidence climbed Michigan in June to 96.1 points, is the highest level of this index in five months.

During the weekend, China’s central bank cut his benchmark interest rate to 4.85%, for the fourth time since November 2014 in order to accelerate the local economy after the slowdown which originated in the real estate market reversal, local bonds and the stocks in state.
China’s GDP is expected to reach 7% this year, a 25-year low.
Following this slowdown, in the last two weeks, the local stock markets recorded a drop totaling about 20%.

After five days of consecutive declines, the price of Gold rose on Friday by 0.1% but on a weekly summary it fell by 2.08% and closed at a price level of 1,175 Dollars per ounce.

The WTI Oil prices fell last week by 0.20% and closed at a price level of 59.60 Dollars a barrel.
Investors around the world are concerned that an agreement with Iran regarding the nuclear crisis issue, would lead to increase of the global Oil supply.

Trading Opportunity
GBP/USD

On a weekly chart we can see that the main trend is a downtrend.
Against this trend, for the last 11 weeks, there is a technical correction upwards, this correction was stopped at a resistance area, around the level of 1.5900, which is also a 50.0 resistance level of the Fibonacci indicator.
Last week we had a bearish candle, after the US dollar got stronger against the British pound by 0.88%.

gbp.usd w 29.6.15

Our tendency is to look for PUT option trades, the entry will be from around the levels of 1.5760 – 1.5735.
The expiry will be at July 2 at 17:10.

Market Review, June 26, 2015

A volatile day characterized the trading day yesterday at Wall Street’s stock markets, following the transition between optimism and pessimism in the markets regarding Greece’s debt crisis but ultimately the trading ended with declines.
A meeting of Euro zone leaders and their counterparts from Greece yesterday again ended without result and today will be another attempt to reach a solution which would be acceptable to both sides.

Macro news from yesterday, the US employment data shown that initial jobless claims rose by 3,000 to 271 thousand, compared to 274 thousand expected.
Continuing claims for unemployment benefits rose by 22 thousand to 2.25 million, compared to 2.215 million expected.
Data on consumer spending jumped by 0.9%, slightly above the expectations.

Summing up the day, the S&P 500 closed down by 0.3% and on his way to a ninth consecutive week of oscillation less than 1%.
The Dow Jones index fell by 0.4% and the NASDAQ dropped 0.2%.

News on the number of stocks:
Amazon – Avacor finance lowered the Outperform Market rating of Amazon.
last year yield of Amazon was 45% and, according to Avacor, the company has reached to her price target.

Walt Disney – the company announced about an increase of 15% in dividend distributed to investors.
The company will distribute a dividend twice a year.

McDonald’s – the company continues to campaign efficiency.
The fast food giant will sell 400 affiliates to Thailand local distributor.
The company claims that it will continue her effort to expand around Asia and China.

Another day of talks of the Euro zone leaders in Brussels ended without results.
German Chancellor Angela Merkel said that the Euro zone currently not allocate any additional money to Greece beyond what was left for her second rescue package, and that a “Plan B” is not currently on the agenda.
However, she hopes to find a solution to the crisis that would prevent the retirement of debt-ridden Greece from the Euro zone and from introduction of insolvency.

According to reports, the Greek government yesterday proposed reforms, but Euro zone leaders rejected the proposal arguing that the proposal not much different from the original outline.
Greece offers among other things a new business tax and tax on the wealthy, but insists not make further cuts in pensions or wages of the public sector as demanded by the Euro zone.

Market Review, June 25, 2015

For the first time this week, yesterday’s the trading on Wall Street ended with falling prices, following reports that Greece’s international creditors rejected the outline agreement submitted by Greece, and that Greece has rejected the counter-proposals submitted by creditors.
The inability to reach an agreement distances Greece from the Euro zone.
Summing up the day, the Dow Jones fell by 1%, the NASDAQ and the S & P 500 fell by 0.7%.

Facebook stock on Wall Street climbed to a peak.
Facebook stock climbed yesterday by 1.12% to a price of 88.86 Dollars, which gave the company a market value of about 249 billion Dollars.
Facebook issued over three years ago, and last year the stock soared by 35% and replaced the Wal-Mart in the list of 10 largest companies by market value share in the index S&P 500.

Economic news published yesterday showed that the final growth figures for the first quarter pointed to a contraction of 0.2%, compared with the previous estimate of 0.7% decline.
The weekly Oil inventories fell by 4.9 million barrels, versus expectations of a decline of 2.1 million.
The WTI crude Oil fell yesterday by 1.3% to a price of 60.24 dollars per barrel at the Mercantile Exchange in New York.
The price of the Gold continued to decline for the fourth day in a row, the Gold futures for delivery in August closed at a price level of 1172.9 dollars per ounce, a record low of nearly three weeks after a decline of 0.3% in New York.

The drama regarding Greece was not reflected in yesterday’s trading on stock exchanges in Europe, where the day ended with a mixed trend.
The German DAX fell by 0.6%, the French CAC dropped by 0.3% and the British FTSE rose by 0.2%.

Japan’s index Nikkei ended yesterday at his highest level since the end of 1996, after he rose by 0.28% to the level of 20,868.0 points.
Since mid-October surged Japan’s leading index by 44%, in line with the weakening of the Japanese yen against the US Dollar.
Japan’s market is currently enjoying a backing from the local government after it acquired one of the country’s largest pension funds and with the entry of foreign investments to the domestic market.
Earlier this week the Prime Minister of Japan published an economic plan for the next 3 years and this plan expected to be approved by the Cabinet next week.
The program includes innovations in higher education, the opening of the tourism industry and the technology information industry for foreign employment.

Trading Opportunity

AMAZON

On a daily chart we can see that the price of the stock reached a resistance area, at around the level of 447, and a double top pattern was created.
Also, a bearish divergence materialized yesterday at the MACD indicator after the price of the stock fell by 1.15% and closed at a price level of 440.84.

amazon d 25.6.15

Our tendency is to look for PUT option trade, the entry to the trade will be at the start of the US trading day, at 14:40, between the levels of 440.85 – 440.83.
The expiry will be to the end of the trading day, June 25 at 20:00.

Market Review, June 24, 2015

The trading on the stock exchanges of Wall Street’s ended yesterday with a slight gains following the prevailing optimism in the markets regarding the emerging agreement between Greece and her creditors.
The European leaders have given the Greek government time until tonight to submit more accurate outline of the proposal submitted at the start of the week and was received favorably by the majority of the finance ministers of the euro area.

Economic data released yesterday at the US showed that the data on durable goods orders for May fell by 1.8%, mainly due to a decrease in orders for commercial aircraft.
The early forecast was for a decline of 1.5% after a decline of 1% in April.
The new home sales for May rose to an annual rate of 546 thousand, and this is the highest sales rate since February 2008.
The early forecast was for a moderate increase to 525 thousand, compared to a sales rate of 517 thousand new homes recorded in April.

The European Central Bank raised yesterday the ceiling on emergency funding for banks in Greece for the fourth time in less than a week.
Economic data released yesterday showed that the PMI services and manufacturing sectors in June in the Euro zone unexpectedly climbed to his highest level for more than 4 years.
The composite index climbed to a level of 54.1 compared to 53.6 points recorded in May.
The PMI of manufacturing sector in France climbed to a record of 14 months, to a level of 50.5 points when the index reading above 50 points indicates growth.

The price of the Oil rose yesterday by 1% and reached the level of 61 dollars per barrel, the highest level for the past two weeks.
The price of Gold fell yesterday to his lowest level since June 8.
The Gold fell by 0.6% and the price determined at 1176.60 dollars an ounce.

This morning, the Asian stock markets is going up when the Tokyo stock market approaching a record of 18 years.

Trading Opportunity
EUR/USD
On 4 hour chart we can see that yesterday the pair broke down a diagonal support line.
During the last few hours there is a technical correction upwards.
Our tendency to wait for the technical correction to be completed, between the resistance levels of 1.1280 to 1.1240 and from those levels to schedule an entry of PUT option trades, after we will receive a bearish candlestick pattern.

eur.usd 4h 24.6.15

The expiry time after entering the trade can be to the end of the month, June 30 at 17:10.

Market Review, June 23, 2015

There was optimism in the markets yesterday at the background of a possible agreement between Greece and her creditors.
The European leaders have given the Greek government 48 hours up to Wednesday evening, to submit a more precise outline of their proposal which submitted yesterday, and was received favorably by the majority of the finance ministers of the Euro zone.
If the outline will approve by the Ministers of Finance, it will be submitted for approval by the government leaders by the weekend.
In response, the trading on the stock exchanges of Wall Street’s was on a positive trend yesterday when the NASDAQ rose by 0.7% and set a new record, the S&P 500 and the Dow Jones Industrial Average rose by 0.6% each.
Economic data released yesterday showed that US existing home sales rose more than expected, by 5.1% versus expectations of a monthly rise of 4.4%.

Some stock’s news:
Twitter – has announced that it is considering a new site which will include tweets, photos and videos about the different products.
Apple – changed her policy and plans to pay artists for copyright free period which will launch its new music service.
Facebook – will introduce a new format for publication at Cannes, France.

The trading on European stock exchanges ended yesterday with a rise for the third day in a row.
Frankfurt and Paris stock exchanges rose by 3.8%, and recorded the sharpest daily jump since 2012, the London Stock Exchange climbed by 1.7%.

The price of the Oil rose yesterday by 0.4% to a price of 60.3 dollars per barrel.
The price of the Gold fell yesterday by 1.5% to a price of 1184.3 dollars an ounce.

There is a positive trend in the Asian stock markets this morning, in light of the emerging agreement between Greece and her creditors, and despite economic data from China which pointed of a weakening in the country’s production.
PMI manufacturing for China’s HSBC pointed to the contraction of the manufacturing sector, with an initial reading of 49.6 points in June.
A reading below 50 points indicates of a contraction in activity, however, economists have observed a lower forecast.

Trading Opportunity

STARBUCKS
The stock is on a clear rise trend.
In the last two trading days, on Friday and yesterday, we got a bearish patterns, first a Shooting Star and the other a Bearish Engulfing.
Also, the averages of the RSI and the stochastic indicators made a cutting from an overbought area.
 starbucks d 23.6.15
Our tendency is to look for a put option trade.
The entry will be at the start of the trading day, June 23 at 14:40, if the stock will be below the level of 53.90.
The expiry will be to the end of the day, at 20:00.

Market Review, June 22, 2015

The trading on the stock exchanges of Wall Street ended last Friday with declines as the NASDAQ withdrew from his all time highs, a record he had reached earlier in the week.
The background of the declines came as a result of the fear that the impasse in talks between Greece and her creditors will force the state to reach a insolvency.
Despite this and in a weekly summary, the major US indices posted gains after the Fed signaled that the interest rate hikes will be gradual.
The Dow Jones rose by 0.6%, the NASDAQ rose by 1.3% and the S&P 500 rose by 0.8%.

The price of the Oil fell at the end of the week below the level of 60 Dollars a barrel, erased all the gains he had during the week.
The decline came in light of estimates that Saudi Arabia intends to further increase her Oil production.
The contracts for the sweet kind of Texas crude Oil for delivery in July closed at the price of 59.61 dollars per barrel, a weekly decline of 0.6%.

The price of Gold has risen for the second consecutive week and closed above the level of 1,200 Dollars an ounce, following the Fed’s signal that he intends to raise US interest rates gradually.
The Gold futures for delivery in August closed last Friday at a price level of 1201.9 Dollars per ounce and on a weekly summary, the price of the Gold climbed by 1.9%.

The trading on European stock exchanges closed last Friday on a positive trend as the crisis in Greece continues to be the focus of attention.

The finance ministers of the euro zone failed to reach an agreement last week negotiations between Greece and HER creditors regarding a new reform.
The negotiation resumes on Monday.

The new reforms will allow Greece to receive the last tranche of bailout a totaling in 7.2 billion Euros, but the dispute between the parties is still associated to the degree of the pension cuts.
Without this money, Greece has already announced that it will be unable to make the payment totaling 1.5 billion Euros to the International Monetary Fund on June 30.
Meanwhile, thousands of Greeks demonstrated in front of the parliament building in Athens and chanted slogans in favor of staying in the Euro zone.

Trading Opportunity
AUD/NZD

On a weekly chart we can see that the pair has reached a resistance area, around the level of 1.1280.
This resistance keeps the pair from climbing up since the end of August 2014.

aud.nzd w 22.6.15
On a daily chart we can see that against the last uptrend move, a bearish divergence develops at the MACD and RSI indicators and now we are waiting for a strong bearish day to carry out this divergence.
Also, we can see that last Friday the pair came back into the averages border of the Bullinger oscillator when the averages of the stochastic oscillator made a cutting from an overbought area down.

aud.nzd d 22.6.15
Our tendency is to look for a PUT option trades.
We are waiting for a bearish pattern which will appear today on a daily chart, and then we can enter the trade.
The entry will be at the start of the trading day, June 23 at 00:00 and the expiry time will be the end of the day at 23:00.

Market Review, June 19, 2015

The trading on the stock exchanges of Wall Street ended with sharp gains yesterday after the Federal Reserve estimated that the pace of US interest rate hikes will be slow than estimated so far, and thanks to a number of published economic posts, which supported the central bank.

The current account deficit of the United States expanded in the first quarter of this year by 2.6% of gross domestic product , compared with a deficit of 2.3% of GDP in the fourth quarter of 2014.

In addition, US consumer prices climbed at a moderate rate than expected in May.
The number of initial jobless claims in the US fell last week to 267 thousand compared to 279 thousand in the previous week.
The forecasts were to a more modest decline in the number of claims to 277 thousand.

Summing up the day, the Dow Jones rose by 1%, the NASDAQ jumped by 1.3% and closed at his highest level ever and the S&P 500 rose by 1%.

There is nothing new in Euro zone when it comes to the crisis with Greece.
19 Euro zone leaders will take urgent emergency meeting next Monday to discuss the Greek crisis, after the meeting of the finance ministers of the Euro zone, in an attempt to find a compromise that would lead to ending the crisis, ended yesterday without success.

However, the trading in the European stock markets ended yesterday with gains, after macroeconomic data released which in the US reinforced expectations that the Federal Reserve will raise interest rates gradually and this overshadowed the concerns about the impact on Greece’s debt crisis.

Summing up the day, the London Stock Exchange rose by 0.4%, the first positive day after five days, Frankfurt Stock Exchange climbed by 1.1%,Paris added 0.3%.

Following the weakening of the US Dollar, the prices of the Oil and also the Gold rose yesterday.
The WTI Oil rose by 0.9%,closed at a price level of 60.5 per barrel, a record of a week.
The price of Gold in New York closed at his highest level in nearly a month.
The Gold futures for delivery in August closed at 1,202 dollars an ounce, a jump of 2.1% in the Mercantile Exchange in New York.

Market Review, June 18, 2015

The trading on the stock exchanges of Wall Street ended yesterday on a positive trend after the Fed estimated that the rate of US interest rate hikes will be slow than previously estimated.

The chairman of the Fed,Janet Yellen, said yesterday that there is a certain weakening with lowering the inflation and the central bank expects a moderate growth of the US economy and a continuation of the trend of improvement in the US employment market.
However she added that there is still room for improvement in the employment market and the current conditions still don’t justify raising of the interest rates.

The Fed lowered his US economic growth forecast for the current year, and now expects growth of 1.8% to 2%, compared with a forecast of 2.3% -2.7% recorded in March.

The central bank also forecast that the US unemployment rate at the end of 2015 is expected to be around 5.2% -5.3%, compared with a forecast of 5% -5.2% recorded in March.

As expected, the Fed left the interest rate unchanged in the range of 0% -0.25%
On a daily summary, the Dow Jones climbed by 0.2%, The S&P 500 rose by0.2% and the NASDAQ Composite Index added 0.2%.

Today the finance ministers of the Euro zone will meet ,and they will try to reach an agreement ahead of the date of payment of the debt that Greece should transmit to the IMF at the end of the month.
The Prime Minister of Greece, Alexis Tsipras, reiterated that his government will not accept the demands of the international creditors, adding that he is ready to take responsibility to reject the agreement with creditors.

In response, the trading on European stock exchanges ended with falling prices, the FTSE fell yesterday by 0.4%, Dax fell by 0.6% and the CAC fell by 1%.
Athens Stock Exchange fell to his lowest level since 2012.

The price of Gold fell yesterday by 0.4% and closed at the level of 1176.8 dollars per ounce.

Market Review, June 17, 2015

The trading on the stock exchanges of Wall Street ended with gains yesterday, towards the announcement of the interest rate and the Fed chairman’s speech Janet Yellen,as investors will look for clues from her words about her intention when to raise the interest rates for the first time since 2008.

Economic data released yesterday in the US showed that the housing starts in May fell by 11.1% to an annual rate of 1.04 million,the market expectations were for a more moderate level of 1.077 million housing starts.

The building permits in May increased by 11.8% to an annual rate of 1.28 million, the highest pace since August 2007, the market had expected to a decline to 1.1 million.

On a daily summary yesterday, the S&P 500 rose by 0.6%, the NASDAQ rose by 0.5% and the Dow Jones was up by 0.6%.

Like in the US, so the European markets, for once investors ignored the crisis between Greece and its creditors and major stock markets Europe’s rose yesterday.
Stock exchanges in Germany and France rose by 0.5% and the UK stock market closed unchanged.
The Stock Exchange in Athens fell yesterday by 4.8% due to the increasing likelihood that Greece will eventually have to leave the Euro zone.

After three days of declines in which he lost about 3%, the WTI Oil price rose yesterday by 0.8% and closed at 59.97 dollars per barrel.
The Brent crude Oil fell yesterday by 0.4% and closed at 63.7 dollars per barrel.
The price of the Gold fell by 0.4% and closed at 1,180 dollars an ounce.

Trading Opportunity
TWITTER

The price of the stock reached a support area, around the level of 34.30.
Yesterday an Hammer pattern was created as seen on a daily chart.
The hammer is a bullish reversal pattern that forms after a decline.
The low of the long lower shadow implies that sellers took prices to a lower point during the time frame but the strong finish indicates that buyers placed pressure to end the trading day on a strong note.
Also, the stochastic oscillator averages performance a cutting up from an oversold area.

twitter d 17.6.15

Our tendency is to look for CALL option trade.
The entry will be at the start of the US trading day, at 14:40.
The expiry will be up until the end of the trading day, June 17 at 20:00.