BOJ Disappoints; Google Beats Estimates; Rain Forecast For US Crops
Yesterday was a wild and crazy day for binary traders with lots of swings. First the Bank of Japan said that they would set a 2% inflation target and do asset purchases. However, with a big middle finger to Prime Minister Shinzo Abe, they said they would start the asset purchases next year! This took the market completely by surprise and we saw the yen strengthen and Japanese stocks tank. It is now up to Abe to find a new trick to further weaken the yen or wait until he appoints the new Bank of Japan Governor in April.
Corporate Earnings Boost US Stocks
The S&P 500 Index advanced yesterday to 1492.51 and the Dow Jones Industrial Average advanced 62.51 points to 13,712.21. The S&P 500 Index is up 4.7 percent so far this January. This is the best start for the index since 1997.
According to Bloomberg, 72 of the 76 companies in the S&P 500 Index have so far beaten or exceeded earnings expectations. The bull trend for US stocks is very much intact and the S&P 500 looks set to challenge 1500 next.
Google posted higher 4th quarter earnings. The stock rose 4.8 percent to $736.75 in after-hours trading. Google said advertisers spent more during the busy holiday shopping season and that boosted revenues and earnings.
IBM added 4 percent in after hours trading as it forecast better than expected profits. The company said it’s making more money as customers shift to more lucrative cloud-based computing and data analysis. The stock is currently trading at $203.97, breaking through the key $200 level.
Apple Earnings On Deck Wednesday
All eyes will be on Apple Computer as it reports earnings after the close of US trading today. Many analysts are expecting profits to drop from the previous quarter. Apple has been having trouble growing its brand in emerging markets and is trailing Samsung in new and developing models. Samsung’s products have a much larger screen and that is attracting more buyers. Apple doesn’t expect to come out with a larger screen until later. Apple is trading above the key $500 level and binary traders need to watch the earnings in order to trade Apple stock.
Forecast For Rain Deflates Crop Prices
Rain is forecast for the US next week to bring relief to drought stricken crops. Bulls have sold and locked in their profits. The crop can still be helped if rain develops. Wheat failed at the key $8 a bushel level that I mentioned was so critical. If a market can’t go higher, it must go lower as I like to say.
Platinum Prices Need To Break Above $1710 For Confirmed Breakout
Platinum prices have made multiple attempts lately to stay above $1700, but keep selling off. The recent highs for platinum are $1706.80 and $1706.50. This is an area of extreme resistance and we need to get above here for a sustained breakout. A breakout will have shorts covering and momentum players buying.
Global Optimism Fuels Oil Price Rally
Oil prices continue their march higher with global stock markets. US crude is trading at $96.59 and European Brent is trading at $112.19. Oil bulls are firmly in control and all eyes will be on Thursday’s inventory report from the Department of Energy. Prices for US crude have broken out and the market wants to make a run to $100. A break below $95 and I expect profit taking. Binary traders need to trade accordingly!
As always, good luck to all binary traders and be sure to check back for the latest update!
