› Market review, October 16 - 20, 2017

Market review, October 16 - 20, 2017

Stocks

Traditionally, October is considered an extremely important month for traders of all kinds, as it's time for corporate reports. Giant companies publish reports on their earnings for the previous quarter and this can not but affect the stock market, indices and bonds.
The most interesting from these are reports of Netflix (October 16), Goldman Sachs (October 17) and IBM (October 17). Of course, the publication of reports will cause a wave of volatility and interest in these companies, and for traders it is a great opportunity to make a profit.

GS all last week showed a strong downward movement. This is partly due to the instability of the US economy and in part due to the forthcoming publication of the financial statements. Accordingly, the opening of positions on this asset is a quite attractive possibility, especially considering the fact that half of the Trump administration are representatives of this investment company.


Market review, October 16 - 20, 2017


Netflix, on the other hand, shows stable growth and publication of reports, most likely, will send the company's shares to new, record-high values.


Market review, October 16 - 20, 2017


Gold

As the dollar continued to weaken, gold rose significantly last week and reached the level of $1,300 per troy ounce once again. We have repeated many times that this level is psychologically important, and overcoming it can mean further strengthening of the price of the yellow metal. Gold, as you know, is a safe haven in case of an unsettled situation on the world stage. And now it is exactly this kind of situation. North Korea pours oil in the fire on a weekly basis with its test launches of missiles, and so does Trump with his shocking desire to do everything in its own way. Negative macroeconomic data from the US also makes its impact. Accordingly, the most possible scenario for Gold would be to continue increasing in price with a target of $1313 and even $1331.


Market review, October 16 - 20, 2017


EUR / USD

Over the past week, there has been a clear downward trend. The weakening of the Euro happened with destabilization with the geopolitical situation in the Eurozone.
The exit of Catalonia negatively affects the economic situation in Europe, as, to follow the example of it could be now other EU countries, for example Portugal and Italy, which have huge debts. Also on the horizon is the resuming Greek conflict, which has thickened the clouds over the economy of the Eurozone.
Most market participants worked towards strengthening the dollar, and the price practically broke through an important level of 1.18, but on Friday the entire situation was changed by high inflation in the US.
Consumer prices rose more than eight months in September - this is due to recent hurricanes, which affected the stability of refineries, which raised gasoline prices and affected consumer indices.
In terms of technical analysis, we can say that this week the market will continue to show a downtrend and to test the level of 1.18.


Market review, October 16 - 20, 2017


Bitcoin

It was difficult to ignore the most popular cryptocurrency. On Friday and Thursday Bitcoin set more and more records, reaching $5420 first, and then $5858. Market capitalization is close to $100 billion now. This jump triggered rumors that China could open the previously closed cryptocurrency exchanges.
Even rather worrying remarks of prominent figures in the economic arena of the world regarding the cryptocurrencies in general, and Bitcoin in particular, have been able to cool investors.
The most likely scenario for the upcoming week is a technical retracement to lower levels of support, and if rumors about the resumption of the exchange of China's crypto are confirmed - the growth of Bitcoin in the medium term.


Market review, October 16 - 20, 2017


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