Gold 1751,545
|
EURUSD 1,1579
|
DJIA 33529,50
|
OIL.WTI 74,815
|
DAX 15204,50
|
|---|
There are more and more moments in the market which indicate that troubled times are approaching. One of these moments can be seen in the Dow Jones, which right now on the daily chart is ending its uptrend and moving into a correction phase, or into the beginning of a downtrend.
Dow Jones
Unlike the S&P500 index, the DOW index includes the 30 largest US companies and shows what kind of mood investors now have towards the most powerful players in the US stock market. And the mood, unfortunately, is not a good one. If the biggest 30 companies are not growing, where will the rest get their strength from? Is the economy so strong that the big players don’t care about these companies at all?
In fact, the entire US market is now in search of some sort of vector of movement. The news buzz about the adoption of a sovereign debt ceiling is interrupting other issues that are emerging in the economy. It’s even laughable somewhere to see dignitaries talking seriously about raising the public debt limit in the US. Over the last 60 years, the flow of this debt has been raised 80 times. And here comes another moment when it has to be done “again”. Isn’t it ridiculous that it will be raised anyway? Maybe the moment should even have been cancelled in the US, because it only takes time and wastes the same public money while people are sitting. With the size of the debt, it is clear that it will go up further and for quite a long time.
The global crisis is escalating. Electricity problems in China will hit all manufacturing in the Middle Kingdom. Because China is “the world’s factory for just about everything,” there will be delays in the delivery of quite a large list of goods, which in turn will affect employment, sales and many other economic factors.
On October 1, a new fiscal year begins in the USA. New thoughts, new plans and new ideas. Usually October has always been quite positive for the markets, but will it be this year? The question remains open, given that the latest data shows that unemployment in the USA is starting to rise.
08.00 German retail sales YTD to August
11.00 EU Business Activity Index YTD
16.00 ISM manufacturing activity index in the US for September
Important Notes on This Publication:
The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.