Market Commentary
The Nasdaq hits 5000 and the Dow climbs 155 points to 18288.63 now if that is not a sign of optimism then what exactly is? The all time high is 5048 in the era of the dot com bubble in 1999. The move has been largely fueled by Apple Inc now valued at a staggering $750 billion making it the biggest company in the world. USD rides the wave of optimism. The last 3 weeks has witnessed a calming effect in the currency markets. But that could all change given a strong showing in the anticipated US Non-farm Payrolls this coming friday which is expected to confirm a twelfth consecutive month of +200K jobs growth. That could provide the impetus for the large currency specs to start taking positions and shrug of last 2 weeks slur of mundane data. The EUR remains quiet ahead of this Thursday ECB meeting on rates. The worst of the worst has already been priced in - the Grexit, the amount of QE for 2015, there's not much to add that's already been priced into the currency valuation. All that remains is the wrangling over Ukraine or any other piece of dynamic news that could add a fresh spark to currency direction.
Trish Regan on USA Today weighs in on the pros and cons of a strong Dollar - http://www.usatoday.com/story/money/2015/03/02/federal-reserve-strong-dollar-trish-regan/24257969/ Crude oil and gold retain their narrow trading range as economic fundamentals of demand and supply settle after several months of speculative price action. BP expects oil to be trading in the 50-60 Dollar range for the next 3 years as the industry plans the biggest shake up with production cut backs and job lay-offs to accommodate this new low in the market and work out a production budget formula that can cope with the new price trend. Speculation took the crude oil up to 150 and down to 44 in January. Ed Morse, Citigroup Inc.’s head of commodities research says that oil will probably hover around $70 for many years to come until the Euro zone can enjoy similar economic growth conditions as the USA today; and that could be years away.
US DX
95.474 +0.076 +0.10%
Support 94.923 Resistance 95.833
EUR
1.118335 +0.001090 +0.10%
Support 1.11270 Resistance 1.12910
Crude Oil
49.84 +0.25 +0.50%
Support 47.45 Resistance 52.11
Gold
1207.00 -15.17 -1.24%
Support 1,193.0 Resistance 1,230.6
Pieter Bergli - DeLoren Trust Holdings
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