Binary Option Analysis – US Market Soar in Roller Coaster Ride

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Equities

Asian markets closed mostly lower, but well off their session lows, as buyers began snapping up bargains. The Nikkei fell 1.7% to 8944, after dropping down to 8657 earlier. The Kospi ended with a loss of 3.6%, after tumbling nearly 10%, and the Hang Seng fell 5.7%, better than the earlier 8% loss. Defying the downtrend, the Shanghai Composite closed flat, and the ASX 200 climbed 1.2%, recovering from a 5% loss.

In Europe, the major indexes mostly gained, as the FTSE rose 1.9% and the CAC40 closed up 1.6%. Germany’s DAX lagged the region, easing .1%.

US investors had a wild ride on Tuesday, as the Dow rallied, plunged, and ultimately soared 430 points to close at 11240. The Nasdaq gained 5.3% and the S&P 500 bounced 4.7%, as investors digested the Fed’s pledge to keep interest rates low until mid-2013 due to a weak economy.

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Dow Closes up 430 Points, Swinging 640 Points in Just 2 Hours

Bank of America shares jumped 16.7%, largely recovering from Monday’s selloff due to fears the company may need to raise capital.

Apple shares gained 5.9% as the company’s market cap soared to $347 billion, surpassing Exxon Mobil, to become the largest US public company.

AOL shares tumbled 25.8% after reporting an unexpected loss.



Treasuries

Bonds rose, as the Fed’s pledge on interest rates increased the appeal of bonds. 10-year notes rose 20/32 to yield 2.25%, and 30-year notes rose 22.32 to yield 3.62%.

Oil closed up .30 at 81.61, and gasoline futures rose 1% to 2.725, both reversing from earlier losses.

Gold touched a new record high of $1778, and closed at 1749.60, up $36.50.

Copper rose 1.4% to 4.0235, while silver closed down 1.20 at 38.155.



Currencies

The Dollar tumbled following the Fed’s announcement, with the Swiss Franc spiking and incredible 5.7% to .7069, before settling at .7229. The Euro rallied 1.6% to 1.4392, and the Yen gained 1% to 77.05. The Austrlian Dollar dropped as low as .9928 before reversing to settle at 1.0364 up nearly 2%.



Economic Outlook

The US economy is on the brink of a double-dip recession, and debt pressures are mounting in both Europe and the US. The two are a dangerous mixture, since the traditional stimulus solutions require massive debt expansion.

Wednesday’s reports will include wholesale trade, weekly oil inventories, and weekly mortgage applications. Earnings are due from Cisco and Macy’s.



Binary Options Trading analysis written by Bradley Welcher
 
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