Financial Markets Summary
Tuesday, August 23, 2016
- The price of oil has surged during the past three weeks. Last week’s 10% gain pushed crude oil to $49.36 a barrel from the early August low of $39.19. News of declining inventories coupled with threats of supply reductions generated forecasts of higher prices by some. From a technical standpoint, oil is at a crossroad. A break above the $51.67 a barrel high hit in June could send oil’s price sharply higher or the price could rollover and spiral lower undercutting the low at the beginning of August. Crude oil closed yesterday near $47.50.
- Gold has moved sideways during the past six weeks. A break above $1380 an ounce would target the major resistance area near $1440. Gold closed yesterday near $1340 an ounce.
- The U.S. dollar has traded in a short term downtrend the past four weeks, but still remains in its multi-year trading range that has existed since March 2015.
- July annualized new home sales will be released early this morning followed by the release of July annualized existing home sales tomorrow morning. The numbers are followed closely by housing analysts to see if any change in the trend is possibly in motion. Both numbers are estimated to be below the June annualized number.
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.