Saturday, June 16, 2012

Greek Election Impact On The Market

Hi fellow traders,

Investors waited with bated breath about the outcome of Greek Election this Sunday on the global market reaction on Monday.

The US CBOE Volatility Index (VIX) has gone up during the past few weeks. Markets were volatile amidst events like : the dismal US non-farm payroll report for May 2012, Spain's banks bailout, speculation of whether Greek's voters will choose the leftist Syriza party who opposes the austerity measures, and how Greek's possible exit from Euro-Zone will affect other members of the European community, the USA economy and of course, how the global markets is going to be affected.

Yours Truly,

Tony Chai

Saturday, June 02, 2012

Gold Rose More Than USD60 on 1 June 2012

Dear fellow traders,

Gold has been hovering below the 150 Days Moving Average (DMA) since the beginning of March 2012, a stark difference with the bullish movement that Gold enjoyed back in 2009 to 2011, when Gold even hit USD1900 an ounce in Sep 2011.

But surprisingly (or it has been waiting for this moment), Gold price shot up more than USD60 on 1 June 2012 to end at USD1621.80 an ounce.

This could be largely due to the dismal May US jobs report, where U.S. Economy created only 69,000 jobs in May 2012, the fewest in a year; and the unemployment rate ticked up to 8.2%. There are also other factors involved - Europe's spiraling debt crisis where Spain's bank crisis deepened and confidence waiver with the spike in Italian benchmark bond yields.

The Dow Jones Industrial Average had its worst hit this year on Friday, 1 June 2012, shredding 274.88 points (2.2%) to 12,118.57 points. The DOW has officially dropped below the institutions observed 200 Days Moving Average with this move.

Yours Truly,

Tony Chai