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FED PUSHES MARKET UP AND UP

BITCOIN 781.950 11:20 03.12
BitCoin/CNY 5382.550 11:20 03.12
BITCOIN 782.045 11:00 03.12
BitCoin/CNY 5383.210 11:00 03.12
BITCOIN 782.136 10:40 03.12
BitCoin/CNY 5383.835 10:40 03.12
BITCOIN 782.186 10:20 03.12
BitCoin/CNY 5384.175 10:20 03.12
BITCOIN 782.498 10:00 03.12
BitCoin/CNY 5386.325 10:00 03.12
BITCOIN 780.288 09:40 03.12
BitCoin/CNY 5371.115 09:40 03.12
BITCOIN 781.315 09:20 03.12
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By: Adam Stone
December 19th 2013 06:30 GMT, London, UK

The Fed decides to start tapering its $85 billion a month bond buy-back program and markets just soar. The Fed made a clear statement to the world markets that the US economy is strong enough to handle its development into a new and stronger economy. So starting in January, tapering will begin and the Fed will reduce the Fed stimulus to $75 billion. From there forward, things are still a bit unclear but seeing as how the real uncertainty in the market was revolving around the question of whether the tapering would or would not even begin. Now that this cloud of worry is behind the market now, stocks indices were able to shoot to the sky on the notion that the Fed is somehow pleased with the progress of the economy’s recovery.

The S&P blew past 1800, again, and binary options traders were able to again focus on break strategies. That for us as traders is a defining moment in any day of trading seeing as how it’s less of a grind. You see, when an index like the S&P climbs 1.66% like it did yesterday, taking a break option for the end of the day is a one shot deal. You take the up option once the index breaks and you can effectively call it a day. These are the situations we hope for on any given trading day. So looking at the day ahead for this and other stock indices is basically more of the same: further rises.

The day ahead though isn’t expected to be overly effected by new news events as the only major economic indicator slated for the day ahead is the Initial Jobless Claims. The release is expected at 13:30 GMT and markets are expecting that 365k new American citizens sought unemployment benefits in the preceding week which is nearly identical to 2 weeks ago at 368k. It is important to note that from an economic perspective, a reading of 400k or more is considered an indicator of contraction. In other words, the fact that the releases of this indicator have been so close to 400k are a cause for concern. This despite the increase in the number of Americans actually finding new jobs as was seen in the NFP report published a little over a week ago. The diverging figures are not just curious, they are cause for worry amongst economists as it relates to the problematic nature of the economy’s recovery which all circles back to the decision of the Fed to effectively begin taking away the economic crutch known as quantitative easing. Binary options are expected to follow the release carefully as forex pairs are likely to be the first to make moves on the release.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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