Financial Markets Summary
Tuesday, December 15, 2015
- The stock market started this week a bit more volatile than usual, but trading remained in a band with near term support providing a floor. Even though declining stocks led advancing ones by 3 to 1, some of the major indices managed to finish the day higher. The late day rally was attributed to the bounce in oil’s price.
- This is the last full week of trading for 2015. The Federal Open Market Committee two day meeting concludes on Wednesday and quadruple witching expiration occurs on Friday leaving many to believe the market will be in for quite a bit of volatility throughout the remainder of the week.
- Crude oil rallied back yesterday after dropping earlier in the day to below $35 a barrel for the first time in six years. The market is quite oversold, but the short, intermediate and long term trends remain lower for oil.
- Gold spent all of Monday below support making it likely that it will retest the recent low of $1045.40 recorded December 3. That low was the first test of the February 2010 low. Gold is in a short, intermediate and long term downtrend.
- The U.S Dollar has pulled back a bit over the past two weeks, but remains very close to breaking out of a large base that spans the past nine months. A break out of that base could send the dollar sharply higher, which will surely pressure commodities even further.
This will be the last Financial Markets Summary for 2015.
Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.
Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice. The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness. References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service. Past performance is not a guarantee of future results.