ELLIOTT WAVE ANALYSIS - Latest Market Commentary
25th February 2017 - U.S. Treasury Secretary Steven Mnuchin made several comments Thursday related to president Trump’s economic policies which included setting a timetable for tax reform sometime in August and a re-think about foreign currency### manipulation, especially directed towards China. He said to the Wall Street Journal that a stronger dollar was in the interest of the U.S. even though this contradicts Trump’s earlier comments that a stronger dollar meant disadvantages to foreign competitors. But it was comments about the delayed implementation of new economic policy drives outlined by president Trump for 2017 that prompted the markets to undergo a re-think, triggering profit-taking in major U.S. indices. Read full summary in our latest report!
25th February 2017 - The latest batch of U.S. economic data including Friday’s New Home Sales coming through better-than-expected at 555,000 units for January and February’s Consumer Sentiment at 96.3, again higher than consensus forecasts of 96.0 is ### helping to maintain US$ dollar strength. Conflicting signals from new US Treasury Secretary Steven Mnuchin is maintaining the US$ dollar index at a sensitive point of equilibrium between its continuing uptrend or a break-down that otherwise confirms a new downtrend in progress. Which is it to be? So far, an Elliott Wave corrective zig zag decline in the US$ dollar index that began last January but ended into the early February low keeps the strong dollar bias going with…Read full summary in our latest report!
Bonds (Interest Rates)
25th February 2017 - Last week’s comments from new US Treasury Secretary Steven Mnuchin over the timing of new tax reforms and the fact that he is diluting the effect of Donald Trump’s economic growth policies for this year contributed to declining long-dated### yields into the closing levels of last Friday. The US10yr yield traded down towards interim targets of 2.360+/- and in fact, exceeded this slightly to 2.326. December’s decline from 2.641% remains labelled as a counter-trend 25th wave within the overall uptrend. Ultimate downside targets… Read full summary in our latest report!
25th February 2017 - Precious metals are trading higher, defying nearby resistance levels amidst some bearish divergence in momentum indicators. These latest gains could be a trap when comparing with corresponding mining stocks. Newmont Mining (NEM) is down### by minus -7.7% per cent from the early-February high, Agnico-Eagle Mines (AEM) -13.1%, Anglo Gold Ashanti (AU) -15.4%, Barrick (ABX) unchanged, GoldCorp (GG) -7.4%, HUI -8.5%, GDX -7.3% and XAU -9.1% per cent. These declines are in some cases, only the beginning of larger counter-trend declines so can these continue whilst the bullion head higher. The probability that bullion heads lower seems more logical at this juncture. Revised short-term counts are included… Read full summary in our latest report!