Yellen Speech Sparks Rally in “Everything” as Fed Sees Risk Again | Hacked: Hacking Finance
Hacked: Hacking Finance

Analysis

Yellen Speech Sparks Rally in “Everything” as Fed Sees Risk Again

Posted on .

Yellen Speech Sparks Rally in “Everything” as Fed Sees Risk Again

Introduction

This article was posted on Wednesday, 16:28, UTC.

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2439 0.59%
DAX 12641 -1.64%
WTI Crude Oil 45.30 0.52%
GOLD 1221.00 0.53%
Bitcoin 2370 0.20%
EUR/USD 1.1425 -0.37%

Investors might have felt quite a bit of nostalgia today, as Fed Chair Janet Yellen followed the tradition Alan Greenspan and Ben “Helicopter” Bernanke when she voiced her concerns about the future of the economy. While we agree with her on the risks regarding growth, but we can’t help but wonder if her words were more a reaction to the recent correction in the NASDAQ than anything else. After all, the Federal Reserve supposed to be data-dependant regarding its decisions, just it looks like not economic rather market data dependant.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

Jokes aside, all major stock indices jumped higher after the speech, and the DOW got very close to its all-time highs on the process, with the NASDAQ also recovering above crucial resistance, possibly signaling another rally attempt from the broader market. On an interesting note, and confirming the European Central Bank’s role in following the Fed, the Euro actually fell against the Greenback after Yellen’s testimony and that might signal a durable correction in the most important currency pair.

The Canadian Dollar is also rallying after the BOC’s expected rate hike, and we have to wait and see if the new lows will be durable or a sell-the-news will eventually follow.Commodities are also higher with gold finally leaving the vicinity of the $1200 level, and possibly starting a new upswing after the post-Fed decline. Oil also jumped on the news that US inventories declined by more than expected, while Yellen also gave a boost to the whole segment.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Gold Futures, 4-Hour Chart Analysis

Cryptocurrencies

The crypto market settled down after the strong moves on Sunday and Monday, with the majors all rallying off their lows amid the declining volatility. Ethereum recovered above the $200 level once again, and although it’s yet to pass any major technical hurdles, the long-term picture still suggests that a tradable low is already in. Small cap coins are also trading slightly higher yesterday’s levels, but compared to the recent decline, the bounce is relatively weak, and the short-term resistance levels still hold back the currencies.

// -- Get exclusive consultation for as low as $249 per month on MoneyMakers.com -- //

Ethereum, 4-Hour Chart Analysis

Technical Picture

The NASDAQ is at a critical point after the Yellen-rally, as it got up to the declining trendline that defines the current correction in the tech benchmark. The 5800 resistance is also just ahead of the index, end that could provide a good entry point for traders who expect a deeper correction, as the short-term MACD indicator is also approaching oversold territory.

NASDAQ 100 Futures, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
10:30 UK Average Earnigns 1.8% 1.8% 2.1%
10:03 UK Unemployment Rate 4.5% 4.6% 4.6%
16:00 CANADA BOC Rate Decision 0.75% 0.75% 0.5%
16:00 CANADA Monetary Statement
16:00 UK Janet Yellen Testifies
16:30 US Crude Oil Inventories -7.6 mill -3.2 mill -6.3 mill

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
Tent. CHINA Trade Balance 273 bill 282 bill
3:36 SWITZERLAND PPI Index 0.0% -0.3%
14:30 CANADA NHPI 0.2% 0.8%
14:30 US PPI Index 0.0% 0.0%
14:30 US Initial Jobless Claims 244,000 248,000

 Featured image from Flickr (credits: DonkeyHotey)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

There are no comments.

View Comments (0) ...
Navigation
The team:
Dmitriy Lavrov
Analyst
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Founder
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
P.H. Madore
ICO Analyst
P. H. Madore lives in Arkansas with his wife and children. He has covered the cryptocurrency beat over the course of hundreds of articles for Hacked’s sister site, CryptoCoinsNews, as Read More
Mate Csar
Analyst
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Justin O’Connell
Journalist
Justin O’Connell is a cryptocurrency journalist who works have appeared in the U.S.’s third largest weekly, the San Diego Reader & VICE. // -- Discuss and ask questions in our community Read More
Mati Greenspan
Analyst
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Analyst
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Journalist
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
Arguably the most interesting financial trend of 2017 is the…