US Stocks Rise For Second Week
US Stocks rose again this week on the back of positive earnings from Alcoa and WellS Fargo. Analysts are optimistic that earnings season for US companies will be positive for stocks. European stocks on the other hand fell for the second week on valuation concerns. The S&P 500 closed at 1472.05 yesterday, its highest level in 5 years. 27 companies in the S&P 500 reported earnings this past week and 81% of them beat the consensus estimates. Next week all eyes will be on the financials as Goldman Sachs, JP Morgan, Bank of America, Citigroup and Morgan Stanley all report their earnings.
Bullish USDA Report For Corn And Wheat
Corn and wheat rallied yesterday after the US Department of Agriculture released its report. The report showed that supplies fell more than previously forecast. Corn futures for March settled at $7.0875 a bushel and wheat closed at $7.5475 a bushel. Supplies are tight and markets go up when demand exceeds supply. All eyes will now turn to the weather and see if drought conditions persist or if the US gets a wet winter and alleviates the dry crop conditions.
I advised binary traders to trade this report and those traders that bought binary calls on corn and wheat did very well for themselves and are off to a great weekend. I have been talking about this report all week and it was an event to trade as it always is. This is a lesson of knowing when to trade. Reports are great for binary traders.
Metals Drop On China Inflation Data
Metals prices fell yesterday after China released inflation data that was hotter than expected. If inflation is growing too fast in China, traders are concerned that the government will cut back on stimulus. Gold futures closed at $1660.60 an ounce, silver at $30.408 an ounce, platinum at $1631.20 an ounce, and palladium at $701.45.
Platinum is the one I’m paying closest attention to. Prices dropped to as low as $1616.30 before snapping back. As you can see from the chart below, there’s resistance at $1650, but it keeps making higher lows and that’s a bullish sign. I recommend traders that have been playing binary calls and making money to continue to do so.
Economic Data Next Week
Looking ahead to next week, all eyes will be on earnings out of the US as well as retail sales, housing data, Philly Fed survey, and inflation data for the US. On the international front, all eyes will be on China GDP, industrial production and retail sales. For Europe, we have inflation data out of Germany and Great Britain. New Zealand will release inflation data as well. In Australia, Thursday morning we have the Labour Force Survey. It will be an great week for binary traders with lots of news data and opportunities to trade.
As always, good luck trading and I want all binary traders to have a great weekend. Be sure to check back on Monday for the latest update!
