Oct 9, 2017 – Market Update (Quiet trading today unless…, Honeywell spinning off, Deutsche Borse working hard on moving euro clearing out of UK, JPM/Citi expecting lower trading revenues, BofA to benefit from cost cutting and expanding in retail, USDJPY – Peaking and may loose momentum as per daily chart/MACD)

Mr Price Action/ October 9, 2017/ Market Update, Market Update Posts/ 0 comments

 

Short recap

 

China in green after one week off

Europe in red

US/CA/JP markets closed on account of Columbus day/Thanksgiving/Health-Sports day

US banks/Trys closed but stocks open

NFPs good on earnings, the rest is a question of interpretation (hurricanes, steady jobs growth…etc.)

But USD not taking any clues

Should have quiet trading unless Catalonia declares independence

Or Trump announces something out of ordinary on Iran nuclear deal

 

EU having two issues at political level – Catalonian independence and how to handle it

And the rise of populism in Italy ahead of next year’s elections

Still Brexit ongoing while German economy at full speed with French numbers getting better as well

Brexit – no deal planning underway on UK side

Deutsche Borse working hard on moving euro clearing out of UK

 

Equities

 

Honeywell planning spin offs to streamline the business

Tesla benefiting from Puerto Rico need to restore power

Airbus living turbulent times (investigation of corruption)

Boeing injected GBP 100 into Monarch Airlines

Automation companies to benefit another winner of Trump’s tax plan

Activist investors looking to unlock value of Canadian real estate market

 

Earnings season is back

Sentiment is strong, valuations highs

Thus companies must deliver to justify valuations

Reporting this week: BlackRockDelta Air LinesJPMorganCitigroupBofAWells Fargo

JPMCiti expecting lower trading revenues, BofA to benefit from cost cutting and expanding in retail

Wells Fargo – sales scandal/reputation issues still up in the air

 

Bonds

 

10-yr Trys yield at 2.36% – finished the week lower on NFPs

10-yr Bund yield at 0.46%

 

COT report (as of Tue last week)

 

EUR longs at 91k vs 88k previous week

JPY shorts at 85k vs 71k previous week

GBP longs at 20k vs 5k previous week

 

EURUSD

 

EZ growth ok, CH private investors buying more assets abroad without hedging, some legacy shorts to be still closed out thus dips an opportunity to establish longs for 1.2500 (Source: Morgan Stanley)

Resistance at 1.1750 (200 HMA), 1.1755 (10 DMA), 1.1780

Support at 1.1720 (38.2% Fibo), 1.1714, 1.1699 (200 WMA)

 

Source: Saxo Bank

 

USDJPY

 

Peaking and may loose momentum as per daily chart/MACD

Resistance at 113.00, 113.25 followed by 113.57

Support at 112.62 (10 DMA), 111.89 (200 DMA)

 

Source: Saxo Bank

 

Gold

 

Managed to jump off the lows around 1263

On potential new NoKo nuclear test and lower USD

Resistance at 1296 (50 DMA), 1299 (38.2% Fibo)

Support at 1281 (50.0% Fibo), 1279 (10 DMA), 1273 (100 DMA), strong at 1268 (38.2% Fibo of Dec-Sep rally), 1263 (61.8% Fibo)

 

Data/events

 

US/CA/JP markets closed

Oct 9-15 – IMF/WB meeting

Eurogroup meeting

ECB’s Mersch (0745 GMT)

ECB’s Lautenschlaeger (1200 GMT)

BoJ’s Kuroda (2030 GMT)

 

Tue

Fed’s Kashkari (1000 GMT)

Fed’s Kaplan (1200 GMT)

 

Wed

Fed’s Evans (0715 GMT)

FOMC Minutes

Fed’s Potter

Fed’s Bostic

Fed’s Williams (1440 GMT)

ECB’s Praet (1450 GMT)

 

Thu

ECB’s Draghi (1030 GMT)

ECB’s Praet (1030 GMT)

Fed’s Brainard (1030 GMT)

Fed’s Powell (1030 GMT)

ECB’s Coeure (1600 GMT)

ECB’s Lautenschlaeger (1610 GMT)

 

Fri

Fed’s Rosengren (0830 GMT)

ECB’s Constancio (1015 GMT)

Fed’s Evans (1025 GMT)

Fed’s Kaplan (1130 GMT)

Fed’s Powell (1300 GMT)

 

Oct 18 – China National Congress

Oct 22 – Japanese elections

Oct 26 – ECB

Nov 1 – FOMC

 

 

Should you have any questions feel free to contact me anytime.

 

Good luck Champs!

 

Mr Hawk

 

 

 

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom

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