Key World Stock Markets Briefing
$DIA, $DAX, $GLD, $SLV, $USO, $OIL
“All 3 major U.S. stock indexes closed at record highs on Thursday for the 1st time since Y 1999
With the DJIA, S&P 500, and NAS Comp are marking an all-time highs, one should have a clear investing strategy in place to protect your portfolio when things turn ugly, and they will turn ugly.”
This is ugly: 2 weeks after the 31 December 1999 triple market index high on 14 January 2000 the market corrected, the NAS Comp lost 78% of its value and did not bottom until October 2002.”
I do not know when that will happen; next week, next month, or next year, but be prepared, as investing in here is risky.”
Crude Oil prices staged a strong rebound as Saudi Arabia signaled the OPEC is keen on discuss about “stabilizing the Oil market” at the informal meeting next month, meaningless banter. Saudi pumped a record amount of Crude Oil last month to establish it is still in control of the world’s Crude Oil market.” PE
DJIA at 18613.52, +0.64% marked a new ATH (all-time high) at 18638 Thursday and looks well on its way to 18900-19000 in line with expectation, 1st support is at 18450.
DAX at 10742.84, +0.86% marked a fresh year high as it runs closer to the target/resistance area at 10900-11000 with the near term support unchanged at 10600-500.
Weakness in the Japanese Yen (101.97) has boosted Nikkei (16856.27, +0.72%) Friday, but it still has to manage a break above the resistance at 17000-300 to come out of its Bearish stance and bring 18000 back into view.
Shanghai at 3015.56, +0.43% tested and bounced from the lower end of the range of 3000-50 indicating a continuation of the sideways movement for a few more sessions.
Nifty at 8592.15, +0.20% closed flat after testing the entire support band of 8565-35 and a late recovery, but a failure to rise above the resistance area at 8660-80 near term may indicate a near term Top and push it below 8500 next.
Crude Oil, Gold & Silver
Precious metal markets were unmoved Thursday, but Crude spiked as OPEC members may meet unofficially to stop the petro-$ loss and stabilize the market.
As expected, the volatility in both Gold at 1340.75, and Silver at 20.02 is collapsing, thus strengthening the sideways move. Gold may stay in the range of 1330-70 and Silver in 19.20-20.70 for the next few sessions with narrow range days expected inside the range.
Brent Crude at 46.21, and WTI Crude Oil at 43.71 rose on speculation that the major Crude Oil producers will act together to stabilize the markets, wishful thinking, OPEC is at the mercy of Saudi Arabia . Brent Crude may reach 47.60-48.00 and WTI Crude O may rally to 45.40-46.00 where it remains to be seen if the current rally ends and a fresh correction South emerges.