Binary Options Trading analysis written by David Frank
Markets
Markets closed lower in the final trading day of a volatile year. The Dow finished higher for the year, while the S&P erased gains to close out the year basically flat.
The Dow Jones Industrial Average finished lower for the session, but finished in the black for 2011 as it saw its its biggest quarterly point gain in history. The S&P 500 and the Nasdaq also ended the session lower. The S&P erased its earlier gains for the year in the final minutes of trading, leaving the index basically unchanged for the year.
DJIA CHART
FOREX
The US Dollar Index is 0.80 percent lower from the open after moving 132 percent of its average true range, but we should see the Dollar regain its footing over the following week as it remains oversold. As the recovery in the States gathers pace, the economic docket for the week ahead is expected to reinforce an improved outlook for future growth, and the developments may support the greenback as the rise in private sector activity limits the Fed’s scope to conduct another large scale asset purchase program.
The economic docket for the following week is expected to show Non-Farm Payrolls increasing another 150K in December. However, the FOMC policy meeting minutes due out on Tuesday could prop up the Dollar should the central bank continue to soften its dovish tone for monetary policy. As the Fed carries its wait and see approach into 2012, we should see the central bank stick to ‘Operation Twist’, and the committee may look to conclude its easing in the following year as the economic recovery gradually gathers pace. However, as the sovereign debt crisis continues to drag on the world financial system, Fed Chairman Bernanke may keep the door open to expand the monetary policy further, and the central bank head may look to further expand the balance sheet in order to shield the world’s largest economy.The dollar should appreciate further in 2012 as the fundamental outlook for the US improves.
US Dollar Index
COMMODITIES
Crude futures closed lower Friday as traders eyed developments in Europe and Iran and their potential risks to global oil demand, but prices ended the year more than 8% higher after a strong Q4.
Crude for February delivery lost 82 cents, 0.8%, to close at $98.83 on the New York Mercantile Exchange. The exchange held a full session of trading Friday, but will be closed for the new year holiday on Monday.
For the year, crude futures gained 8.2% after climbing 25% for the quarter. Crude was trading below $80 at the end of September and closed out 2010 at $91.38 .
Gold climbed $25.90 to settle at $1,565.80 an ounce at the Comex division of the New York Mercantile Exchange. This move clinched an eleventh straight year of gains. The gold price traded as high as $1,582.80 and as low as $1546.20 an ounce.
Oil Chart
EQUTIES
McDonald’s was the top gainer for 2011, surging more than 30 percent, while Bank of America posted the biggest loss, plunging almost 55 percent. Sears identified 79 of the 100 to 120 Sears and Kmart stores it said earlier this week it would close, with the list split almost evenly between the two chains. Standard & Poor’s placed Sears’ credit rating on review for a possible downgrade, saying the retailer’s plan to close at least 100 stores may not do much to improve performance.
Markets
Markets closed lower in the final trading day of a volatile year. The Dow finished higher for the year, while the S&P erased gains to close out the year basically flat.
The Dow Jones Industrial Average finished lower for the session, but finished in the black for 2011 as it saw its its biggest quarterly point gain in history. The S&P 500 and the Nasdaq also ended the session lower. The S&P erased its earlier gains for the year in the final minutes of trading, leaving the index basically unchanged for the year.
DJIA CHART
FOREX
The US Dollar Index is 0.80 percent lower from the open after moving 132 percent of its average true range, but we should see the Dollar regain its footing over the following week as it remains oversold. As the recovery in the States gathers pace, the economic docket for the week ahead is expected to reinforce an improved outlook for future growth, and the developments may support the greenback as the rise in private sector activity limits the Fed’s scope to conduct another large scale asset purchase program.
The economic docket for the following week is expected to show Non-Farm Payrolls increasing another 150K in December. However, the FOMC policy meeting minutes due out on Tuesday could prop up the Dollar should the central bank continue to soften its dovish tone for monetary policy. As the Fed carries its wait and see approach into 2012, we should see the central bank stick to ‘Operation Twist’, and the committee may look to conclude its easing in the following year as the economic recovery gradually gathers pace. However, as the sovereign debt crisis continues to drag on the world financial system, Fed Chairman Bernanke may keep the door open to expand the monetary policy further, and the central bank head may look to further expand the balance sheet in order to shield the world’s largest economy.The dollar should appreciate further in 2012 as the fundamental outlook for the US improves.
US Dollar Index
COMMODITIES
Crude futures closed lower Friday as traders eyed developments in Europe and Iran and their potential risks to global oil demand, but prices ended the year more than 8% higher after a strong Q4.
Crude for February delivery lost 82 cents, 0.8%, to close at $98.83 on the New York Mercantile Exchange. The exchange held a full session of trading Friday, but will be closed for the new year holiday on Monday.
For the year, crude futures gained 8.2% after climbing 25% for the quarter. Crude was trading below $80 at the end of September and closed out 2010 at $91.38 .
Gold climbed $25.90 to settle at $1,565.80 an ounce at the Comex division of the New York Mercantile Exchange. This move clinched an eleventh straight year of gains. The gold price traded as high as $1,582.80 and as low as $1546.20 an ounce.
Oil Chart
EQUTIES
McDonald’s was the top gainer for 2011, surging more than 30 percent, while Bank of America posted the biggest loss, plunging almost 55 percent. Sears identified 79 of the 100 to 120 Sears and Kmart stores it said earlier this week it would close, with the list split almost evenly between the two chains. Standard & Poor’s placed Sears’ credit rating on review for a possible downgrade, saying the retailer’s plan to close at least 100 stores may not do much to improve performance.