1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday March 10, 2015
For 2015 I would like to wish all of you discipline and patience in your trading!
TradeTheNews.com Weekly Market Update: Payrolls Still Rolling, ECB Starts QE, China Slows Growth
– The week hinged on big announcements out of top Chinese officials and the ECB, as well as the latest US jobs report. The PBoC started the week off with another unscheduled rate cut, which helped soften the blow of Premier Li confirming a lower GDP growth target for 2015. The ECB offered up operational details for its quantitative easing program and said it would begin next week. The dollar index, already at a decade high, gained more strength in the wake of another solid US employment report bringing Fed rate lift off closer to reality. US Treasury yields moved up across the curve, the 2-10 year spread widened 150 basis points, and the US benchmark 10-year Treasury yield is now up on the year at 2.24%. On Monday, the Nasdaq Composite crested the 5,000 mark for the first time since the year 2000 tech bubble popped, but that marked the top for the week as the Nasdaq dropped 0.7%, the DJIA lost 1.5%, and the S&P500 fell 1.6%.
– Heading into the trading week risk appetite was getting a tailwind from another surprise PBoC rate and the anticipation of the launch of ECB QE. Early on, the USD maintained a firm tone against most currencies with the Dollar Index hitting fresh 11-year highs. By Thursday the ECB confirmed that it would begin its QE purchases on March 9th and that the program would indeed purchase government bonds with negative yields, sending the Euro below 1.10 and European bond yields to fresh record lows.
– Another stellar US employment report Friday only fueled the USD rally. The USD/JPY approached 3-week highs and tested near the 121 handle. The Yen weakness encouraged some verbal intervention when a Japanese government advisor stated that the pair’s present levels were in the “upper limit of comfort zone.” Emerging market currencies also remained highly sensitive to US Fed expectations. The USD/BRL tested above 3.03 level (weakest Real level since 2004), and the South Africa Rand hit 13 year lows as USD/ZAR approached the 12 neighborhood.