Fundamental Analysis | Sharp Trader

Dec202013

The ripple effects of tapering still surrounding the markets

Tumultuous week for the equity market is coming to an end, during which we have seen the biggest firework of this year- the Fed taking it easy on the tapering paddle. We will wrap up this week with another fairly full day of economic data. The equity market across the globe has made its all time high on the back of the optimism, that the recovery and confidence in the US market has returned, and this why, the Fed were confident enough to start wrapping up their ultra loose monetary policy.

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Dec192013

Here comes Bernanke…. and the fear of taper is over

The Federal Reserve bank reduced their asset purchased finally yesterday by $10 billion which we were predicting in our analysis throughout this week. Although, many were caught on the wrong side of the market, but the 850 word statement by the Federal Reserve bank, which Bernanke took to extreme length to make sure the US bond does not get out of control and they can calm the market nerve. I think the deal maker was the dovish forward guidance by the Fed, and the result of this filtering through in the European markets today which are trading towards their high of the day.

The fact is that Bernanke has put the ball in motion and it will be up to Janet Yellen to play with it. But, considering she is a dove herself, so every meeting going forward, will be very closely watched by the market, and further tapering of their asset purchase program will remain the main focus among traders. So, not that Janet Yellen has to decide about the tapering, but she will also have to manage the market expectation, a very difficult task indeed.

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Dec182013

FOMC- Santa or Grinch, US futures are calm before the storm

The day has finally arrived when the most anticipated event of this year will take place today and tapering talk could possibly will find a pillow to sleep. It has been almost 8 months, that we are almost consistently talking about the Fed and their decision to wind up their ultra loose monetary policy. There is certainly no one to blame for this, because after all it was the Fed who fed this idea to the markets, and the investors are trying to get themselves positioned accordingly.

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Dec172013

US Futures and European markets lost mojo after their best day yesterday ahead of economic data US CPI data

The strong bounce in the equity market which we experienced during the European and US trading session is fading away this morning, as we are heading closer to the FOMC meeting. The gains which we experienced yesterday, were also the result of bargain hunting, and as a result, the European markets posted their best one…

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Dec162013

Asian markets closed lower after the Chinese PMI data while European markets up

Asian markets closed sharply lower on the first trading day of the week . The markets came under pressure today after the disappointing Chinese PMI data but if we look more closely towards this number, we will see that the output has actually improved which suggest that sentiment is improving . But, for now, on the release of this Chinese economic number, traders are finding any excuse to lock some of their profits, given the Stella Rally we have seen so far this year. The Japanese Taken survey, which measures the manufacturing activity in the country, matched the expectations. However, the main theme for trading for this week, is without any doubt is the FOMC meeting this week. There is a possibility that the Fed may trigger some sort of tapering this week and this could certainly trigger further sell off for the equity market.

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Dec132013

Asian and European markets waver ahead of next week’s Fed meeting

Asian markets closed mixed on the final trading of the week by recovering some of their losses which were made yesterday. The Fed meeting which is taking place next week was the main focus among traders who are trying to gauge if the Fed will initiate to taper their ultra loose monetary policy. The economic data released so far since their last meeting has completely placed all odds in the Fed’s corner to trigger the tapering button. The dollar has surged on the back of this news during this month against the yen. This weakness in the yen has helped the exporters to compete against their competition abroad.

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