Insights, analysis, and updates from the National Introducing Brokers Association
A positive U.S. jobs report, dovish comments from the Fed and news on the trade front helped spark a rally in equities. Jack Bouroudjian discusses what it all could mean for equity indexes in 2019. The post Market Update: Perfect Storm for Bulls appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Perfect Storm for Bulls
The year started right where 2018 left off, with more volatility. Jack Bouroudjian explains why this week’s volatility might be different, and why market participants should watch fund flows and the Fed over the next few trading days. The post Market Update: New Year, More Volatility appeared first on OpenMarkets. Source: CME Open Markets - Market Update: New Year, More Volatility
Successful traders do not have a crystal ball.They identify and assess risk and then act accordingly. As 2018 ends and we look forward to 2019, what risks should we concern ourselves with? I am going to concentrate on three main areas of risk for traders in the United States: a continued trade conflict with China, the effect of Brexit on the global economy and stability in the oil producing region of the Middle East specifically with regards to Saudi Arabia. Trade Conflict with China When the current U.S. administration made it clear that there would be a different approach to our trade practices, I was skeptical. I felt that China was better positioned to play the long game. China does not have to play by the same political cycle rules that the United States does. They do not have to plan for a potential political upheaval every two, four or...
The flattening of the yield curve, the rising dollar and hedge fund redemptions are among the factors that will eventually influence market structure. In looking back at this year’s trends, Jack Bouroudjian gives some guidance for what we should watch heading into 2019. The post Market Update: The Factors That Influenced 2018 Markets appeared first on OpenMarkets. Source: CME Open Markets - Market Update: The Factors That Influenced 2018 Markets
As the last week of December comes to a close, Jack Bouroudjian discusses recent market moves and what to look forward into the coming year. The post Market Update: December Review appeared first on OpenMarkets. Source: CME Open Markets - Market Update: December Review
The only certainty about global energy is that the markets will continue to surprise in 2019. The energy business has always been notorious for its ups and downs. This is even more true today when the energy landscape is evolving rapidly. The old order is changing fast as new trade routes emerge, driven by the resurgence of US energy production. That said, there are a few key trends that emerged in 2018 that are likely to set the tone for the year ahead. U.S. Oil Independence The United States was a net exporter of oil and refined products for one week in late November for the first time in 75 years. The shale revolution has seen domestic U.S. crude oil production surge to around 11.7 million barrels per day. Plentiful supplies of crude oil are also making U.S. refiners more competitive, encouraging them to boost output of refined products like...
Jack Bouroudjian discusses the factors behind today’s volatility hitting stock markets, and why we should watch the Fed and the yield curve before the end of the year. The post Market Update: What’s Driving the Market? appeared first on OpenMarkets. Source: CME Open Markets - Market Update: What’s Driving the Market?
The most commonly held definition of a “bear market” in stocks is a 20 percent price decline from peak to trough. Although there are several different index’s one could use to measure, most often people are referring to the Dow Jones industrial average or the S&P 500 index. Traders tend to look at the S&P 500 because it’s far more broad then the Dow 30 and less volatile than the technology heavy Nasdaq 100. Since 1999 there have been three bear markets in the S&P 500. All bear markets are definitely not created equal. The “tech wreck” of 2000 and the real estate implosion of 2007 were vastly larger than the minor 2011 bear caused by the European crises. The main reason that bears differ is that the bull markets that precede them are often unique. Story, Sentiment and Market Position Prices of any asset are determined by three things:...
The equity market slide continued in a big way, including the worst week for the Nasdaq in about a decade. Jack Bouroudjian unpacks it all and looks at what traders should watch to begin 2019. The post Market Update: Getting Ready for 2019 appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Getting Ready for 2019
OPEC’s decision to cut oil production beginning in January 2019 might have been expected to boost oil-linked currencies, but other factors are taking their toll. The currencies most closely associated with crude oil prices are the Canadian dollar (CAD) and the Russian ruble (RUB), although the former is also heavily influenced by U.S. interest rates. Canadian Dollar Correlation between the CAD and oil has risen in recent months and the loonie has been boosted by a cut in production in Alberta that saw Western Canada Select crude surge more than 70 percent, narrowing its discount to the U.S. benchmark, WTI. However, Vincent Cignarella, currency strategist at Bloomberg notes that trade and fundamentals often have a greater impact on the value of the CAD. A JP Morgan report on the outlook for the CAD in 2019 has USD/CAD remaining elevated at the beginning of the year on weak local oil prices...
