Stock Market Trading: 14 November 2014
Stock market indices are set to open flat this morning ahead of European GDP data.
Although the FTSE has managed to gain some ground this week, the DAX
are practically flat, highlighting the immense indecision and debate that has been raging about how to interpret today's releases.
Some traditionalists are suggesting that if we get a good batch of readings then it's a sign that Europe is pulling away from the edge, which should be a risk on trigger.
On the other hand, we have the 'bad news is good news' crowd, who probably have their fingers crossed for a dire set of readings so that the pressure on the ECB to launch sovereign QE is insurmountable.
It's going to be a volatile day as the competing camps square off against each other.
The Dow Jones has made a miraculous recovery from October's severe pullback and once again overcame some turbulent trading swings to finish the day up 40 points.
both contributed heavily to the rise in the Dow, the S&P 500 didn't fair quite as well as oil companies took another hit.
Stock Market Trading: 13 November 2014
European indices are set to make a modest attempt at recovering some of yesterday's losses with small gains expected on the open.
However, there doesn't appear to be any new buyers up at these levels after such a sustained rally, so markets are consolidating whilst they wait for something to shake up the equilibrium.
Europe is still in a real mess and as yesterday's German Wholesale Prices showed, and today's Final CPI will surely show, that deflation remains a very real threat.
This should actually buoy traders because of the 'bad news is good news' mentality if it leads to the ECB firing off some QE, but there are concerns that Draghi is permanently behind the curve.
After seeing a bit of a sell off, the bulls picked themselves up and pushed US stock indices back up to the dizzying heights they are accustomed to.
With the bears and bulls starting to wrestle over territory, they are creating a classic 'megaphone' trading pattern, where the trading range becomes increasingly larger.
Stock Market Trading: 12 November 2014
With little in the way of news or economic data, and the US session muted because of Veterans Day, there wasn't much for traders to get their teeth into yesterday.
US indices decided to take a breather as stocks looked to consolidate their strong gains this month.
With the Dow Jones and S&P 500
breaking new highs almost every day, it makes sense that some money would be taken off the table.
However, whilst a sideways move is still good news, and the rally from mid-October still looks to be intact, we are definitely losing some steam.
Even though US pundits and markets have awarded themselves an early Santa rally, European markets don't seem to be as festive.
Their inability to retake the annual highs shows that traders understand how divergent the US and European economies are becoming.
This disparity is likely to be further highlighted by this week's BoE Inflation Report and economic projections, as well as the Eurozone GDP readings.
Following the subdued US session, European stocks are set to open flat this morning on a lack of directional cues.
Stock Market Trading: 11 November 2014
European stock indices are set to perk up on overnight gains in the US and Asia.
US stocks continued their rich vein of form and so the Dow extended another 40 points to soar into all-time highs once again.
With the index
now trading at 17,570, US investors are taking advantage of low interest rates, positive economic data and solid earnings releases.
This confidence in the US economy seems to be brushing off any domestic European concerns and the bulls are running with it this morning.
Forget that Europe is on the precipice of deflation or that China is spluttering along, if the Dow can make a new high then that's all the evidence the buyers need for a rally.
Stock Market Trading: 10 November 2014
Equities in Europe are struggling to find direction on the open this morning.
The indecision shown by mixed closes in the US on Friday and Asians indices going in different directions overnight indicates that there's no consensus for markets at the moment.
The US jobs data seems to be the source of this uncertainty as the headline figure missed expectations, but the previous month was revised higher and unemployment unexpectedly declined.
No one is quite sure whether this was a positive or negative indicator for the economy and so traders don't know whether this will tug the Fed in a dovish or hawkish direction.
With that mental state, European markets are set to start today on an uneasy footing and are likely to be susceptible to whatever news or data hits the wires.
Having said that, Wall Street
is currently aiming for a rebound on Monday.
The weaker than expected jobs report came as a bit of a shock, but since the initial sell off, we are almost back at the highs.
With Dow futures trading at 17,574 and a light economic calendar ahead, if sentiment can remain strong throughout the European session, the bulls may look to push new highs.
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By Jonathan Sudaria, 14 November 2014