Daily Commentary 24/12/2014

The DOW surged through 18,000 in the latest ‘Santa’ rally. The trigger was the growing confidence in the US economy fueled by lower oil prices and confirmed by an explosive GDP growth number. The historical growth number confirmed the economy surged, expanding by 5% annualized far exceeding expectations. The stronger economy has lead the Fed…

Daily Commentary 23/12/2014

Nothing will upset the apple-cart in Christmas week! The DOW continued to respond to the ‘sugar-rush’ announced by the Fed last week. The observations of a recovering economy from Fed Chairman Yellen has given markets the encouragement that they did not, necessarily, need. The promise of ‘oceans of liquidity’, despite the economic recovery, has enhanced…

Daily Commentary 22/12/2014

The week dominated by the Fed closed strongly with equities surging towards record highs and wiping out previous losses. Central Bank commentary served a lesson up to the markets that they remain the primary driver and determinant. This is not free market capitalism and the massive distortions created through ‘Independent’ monetary policy has corrupted the…

Daily Commentary 19/12/2014

Central bank intervention continues to dominate markets with the Fed Chairman, Yellen, confirming stronger economic conditions in the US will result in rising interest rates….but not yet! This was enough sugar for the addicted equity markets to surge upwards enhancing the previous day’s gains. The promise of future rate rises did support the Dollar which…

Daily Commentary 18/12/2014

Oil(Brent) rebounded to $63 overnight pushing energy stocks higher and boosting equity markets. The Fed ends their two day meeting today and are expected to leave rates at record low levels for an extended period. The CPI number was lower than expected allowing freedom for the Fed to retain the ‘free money’ policies. European CPI…

Daily Commentary 17/12/2014

Oil prices continued to ‘tank’ which is destroying energy producers and companies associated. The Russian economy is in tatters and the currency is in free fall, reflecting the dependence on oil, rather than the sanctions applied over the Ukraine situation. Overnight the Rouble broke 70, to the USD, with rumors of intervention in the form…

Daily Commentary 16/12/2014

The equity sell off, triggered by the collapse in Oil prices, continued with the open of the new week. The world was preoccupied with the ‘terrorist’ hostage standoff in Central Sydney. This was resolved early this morning with the death of the gunman. Multiple hostages were also killed or injured. The police intervened after gunshots…