Market Review, January 5, 2016

Yesterday,the trading on Wall Street exchanges were shut down by sharp declines, and it was the worst opening trading day of a new year in 15 years.

On a daily summery, the NASDAQ closed down by 2.1% after having fallen by more than 3% during the trading day.
The Dow Jones retreated by 1.6%, the index S&P 500, which retreated by 0.7% in 2015 , yesterday lost 1.5%.

The Japanese Yen, which is considered a shelter for investors in times of crisis, strengthened against the major currencies yesterday in light of falls in stock markets around the world.
The yen climbed by 1.1% against the US dollar and strengthened by 1% against the Euro.

The price of Gold, which is also considered a shelter for investors in times of crisis, soared yesterday.
The price of the Gold closed at 1075.2 dollars per ounce, up 1.4%

Volatile trading day ended with a decline in oil markets and concern over the slowdown of growth in China which will reduce demand for crude oil.
The price of the oil closed at a price level of 36.62 dollars a barrel, a decline of 1.1%.

Trading Opportunity
EBAY – PUT
Yesterday the share broke down a support area, with a decline of 3.82% as the trading volume was high.
The averages of the Stochastic and the RSI indicating of a possibility of further decline.

ebay d 5.1.15

Our tendency is to look for a PUT option trade.
The entry will be at the start of the US trading day, between the levels of 26.50 – 26.20.
The expiry time will be, January 5 at 21:00.

Market Review, January 4, 2016

Last week, the stock exchanges on Wall Street completed the worst year since the global financial crisis.
The year of 2016 will open with the same concerns that accompanied investors at the end of the year.
It was a year with high volatility in US markets and at the end:
The Dow Jones completed an annual reduction of 2.2%, the first annual decline since 2008.
The S&P 500 retreated by 0.7%, it was the first annual decline of the index for the past four years.
The NASDAQ climbed by 5.7%, it was the fourth consecutive year of gains.
In the first week of January some economic news are expected to be at the US, data’s that will tell us about the state of the world’s largest economy: car sales, trade balance and the employment who will be report will be published on Friday.
In Europe on Thursday there will be the employment data in the Euro zone.

Trading Opportunity
EUR/USD

On a monthly chart, there is a bullish divergence at the histogram of the MACD indicator, as last month the pair has stopped at a support area.
Also, the averages of the Stochastic and RSI are at an oversold area.

eur.usd m 4.1.16

Our tendency is to look for a CALL option trade.
The entry will be between the levels of 1.0800 – 1.0900.
The expiry time will be, March 31 at 17:10.