All Out Fearful Friday

You mean it's just not Putin the world has to worry about? Iraq is back in the news and making headlines. Take a few minutes and read through this NY Times piece http://www.nytimes.com/2014/08/08/world/middleeast/obama-weighs-military-strikes-to-aid-trapped-iraqis-officials-say.html?_r=0

The ECB has come and gone(non-event), Australia has its worst unemployment in a decade @ 6.4% and the US jobless claims are the lowest in 8 and half years. The Aussie dropped a full 100 points since the job number yesterday, the Euro tested just shy of 134 at the highs and just below 13350 at the lows of the day, the US Dollar gained and did stay above support and finished above 8160. It is quite possible to trade sideways until the 22nd of this month, this should be the currency markets next big event, the Jackson Whole symposium, where the world anticipates Janet Yellen's outlook.

With all the news from geopolitics Gold was propelled higher today making a high of $1316 while staying above the 1300 throughout the entire day. Silver traded on both sides of $20, I am concerned with Silver because if the equity markets keep headed south, Silver, due to its industrial uses, may set back even deeper.

Here is what needs to be watched on Friday for the close of the week. Here is a daily chart of the US 10 Year Note, look at the move that is taking place, the rate closed at 2.41% today and if the equity markets keep tumbling, rates should keep heading lower as investors are buying bonds out of fear due to the global events. This chart just says FEAR

Last, let's finish with a look at the weekly chart on the S&P 500. We are getting close to the even 1900 handle. If this should break to finish the week, stocks should be in for more of a hurting. Being that we are just down a little more than 4% in US equities so far, one just has to see, that we very well could see another 100 point drop in the S&P and it would just be a normal 10% correction. Let's see how the week finishes out! Here's your chart

Have a safe Friday, if trading protect yourself!

TraderMartin