This week saw a general movement up for most world markets. In the United States (U.S.) the Dow Jones Industrial Average (DJIA) moved into positive territory on Thursday, for the first time this year. It has been a remarkable comeback from the worst start ever for this key exchange. The composite is now above 17,600 points.
The American S&P 500 reached its highest level for 2016 this week.
The Federal Reserve Bank of New York has over $2 trillion in assets.
These developments were largely the results of stabilizing oil prices, easing recessionary fears and the move by the Federal Reserve Bank (Fed), to delay further increases in interest rates indefinitely. The number of expected increases have been reduced from four to two.
A number of Wall Street Banks including Morgan Stanley have cut bond yield forecasts in 2016, on the assumption that the Fed will not raise interest rates until December. Domestic and international rates are projected to fall throughout the year.
Morgan Stanley unlike some other investment firms, is placing the chance of a recession at 30%.
A number of leading national composites are now moving back into positive territories for the year, once again. In addition, even though there is some evidence of a more robust American economy, investors are still buying gold and other precious metals. It is proof that there are many individuals who consider the present rally, to be a temporary phenomena.
Holdings in bullion backed funds have now advanced for ten consecutive weeks. It is the longest streak since 2012.
Iran on a world map.
Talks among major producers oil will begin during the upcoming week. Iran continues to insist that they will not agree to any production cuts, until there is a doubling of national output. The only way to restore prices to a higher level will be through a reduction in global supplies.
World crude oil prices were back above $40.00 USD (United States Dollar) by the end of the week.
In related news the strain of lower oil prices is beginning to show, with the Saudi government ordering domestic ministries to cut their budgets by 5%. The budget last year hit a record $100 billion USD.
In response to the lowering of their credit rating, Chinese central bank officials will be constrained in further stimulus measures, after cutting interest rates six times since 2014 and reducing reserve requirements held by banks.
The Tokyo Stock Exchange, one of the largest stock exchanges in Asia
Bank of Japan is now facing some of the downside of lowering interest rates below zero. The securities industry is warning of a major flight of investment money.
The Japanese economy is reeling from sluggish production and a decline in exports this year. For the 5th month in a row, exports have fallen. It is not a good sign for global growth, if the worlds 3rd largest economy continues into the 4th year of recession in 5 years.
The London Stock Exchange and Deutschmark Boerse have created Europe’s largest securities operator merger worth $30 billion USD.
The ruling Christian Democratic party suffered losses in three state elections last weekend. The electoral results were a major setback for German Chancellor Angela Merkel. The major issue confronting voters is the contentious refugee issue. However, Merkel herself is in no danger of losing her job.
Also in European financial news, Switzerland keeps interest deposit rates at 0.75%. Norway drops rates by 0.25% to an all time low of 0.5%, heightening concerns that the country is moving ever closer to negative territory.
Turkish Parliament in Ankara
Another terrorist attack took place in Ankara, the capital of Turkey. The country is a member of NATO (North Atlantic Treaty Organization), but is still facing multiple security threats.
Possible Turkish membership into the European Union, is now being linked to the decades old Cyprus dispute, in addition to the migration crisis.
Russian President Vladimir Putin has ordered the draw down of troops from Syria. His main objective to bolster President Assad in the Syrian civil war, has now supposedly been achieved.
President Dilma Rousseff at Jornal Nacional news program. Rede Globo is the second largest commercial television network of the world.
In Brazil, more than a million people marched on Sunday in protest of the weak economy and political corruption. There were also repeated calls for the impeachment of President Dilma Rousseff. The demonstrations were the largest ever.
Former Brazilian President Lula da Silva is now facing criminal charges in the growing probe in government corruption. As a counter move he has joined the cabinet of President Rousseff, thus shielding him from certain legal actions. The domestic markets responded negatively to the news.
North Korea continues to heighten tensions in the region by moving forward with missile tests, despite protestations from the United States,the global community and the United Nations.
The Investment Newsletter had 0 target fills to report this week, and 2 early stock fills.
Dollar General (DG ) was recommended long on 06/15/16 for $75.99, with a buy fill on 08/24/15. It is now suggested that investors sell this stock before reaching the Medium Term Target. At $84.04 USD, the increase of $8.05 will provide investors a return of 10.59%.
iRobot (IRBT) was recommended long on 06/01/15 for $31.95 USD. It is now suggested that investors sell this stock before reaching the Long Term Target. At $34.66 USD, the decrease of $2.71 will provide investors a return of 8.48%.
It is recognized that the sale price upon reading the post, may be somewhat different from when the recommendation to sell was actually made. It is up to the investor to determine the ideal time, to close the position.
Stock Fills For The Previous Weeks
Mar 11, 2016 ——– 2 Target Fills & 3 Early Target Fills
Mar 04, 2016 ———1 Target Fill & 2 Early Target Fills
Feb 26, 2016———- 2 Target Fills
Feb 19, 2016———- 0 Target Fills & 2 Early Target Fills
Feb 12, 2016 ———05 Target Fills
Feb 05, 2016 ———05 Target Fills & 4 Early Target Fills
Jan 29, 2016 ———01 Target Fills & 2 Early Target Fills
Jan 22, 2016——— 08 Target Fills
Jan 15, 2016 ———09 Target Fills
Jan 07, 2016 ——– 10 Target Fills
Dec 31, 2015 ——–1 Target Fill
Dec 24, 2015 ——–0 Target Fills
Dec 18, 2015 ——–4 Target Fills
Dec 11, 2015 ——–2 Target Fills
Dec 04, 2015 ——–4 Target Fills
Nov 27, 2015 ——- 1 Target Fill
Nov 20, 2015 ——- 6 Target Fills
Nov 13, 2015 ——–6 Target Fills
Nov 06, 2015———5 Target Fills
Oct 30, 2015——— 2 Target Fills
Oct 23, 2015 ——– 2 Target Fills
Oct 16, 2015 ——– 2 Target Fills
Oct 09, 2015 ——- 1 Target Fill
Oct 02, 2015 ——–5 Target Fills
Sept 25, 2015 ——-1 Target Fill
Sept 18, 2015 —— 2 Target Fills
Sept 11, 2015 —— 1 Target Fill
Sept 04, 2015—— 2 Target Fills
August 28, 2015 6 Target Fills
August 21, 2015 – 2 Target Fills
August 14, 2015 –-1 Target Fill
August 07,2015 —2 Target Fills
July 31, 2015 ——1 Target Fill
July 24, 2015 ——1 Target Fill
July 17, 2015——-3 Target Fills
July 10, 2015—— 1 Target Fill
July 03, 2015—— 0 Target Fills
June 26, 2015—– 3 Target Fills
June 19, 2015 —- 2 Target Fills
June 12, 2015—–2 Target Fills
June 05, 2015—–4 Target Fills
May 29, 2015 —- 5 Target Fills
May 22, 2015—– 2 Target Fills
May 15, 2015 —–2 Target Fills
May 08, 2015 —–1 Target Fill
May 01, 2015 —- 3 Target Fills
April 24, 2015—- 2 Target Fills
April 17, 2015 —-5 Target Fills
April 10, 2015 —-3 Target Fills
@ 2014 The Day Trading Academy. All rights reserved. This work is based on SEC filings, interviews, corporate press releases, and extensive research done across investment articles, current events, and investment expertise. It may contain errors, and you shouldn’t make any financial decision based solely on what you read here. It’s your money and your responsibility. As with any investment, there is no guarantee against potential loss. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. This publication’s sole intended purpose is to provide investment-related information as well as education and opinions to subscribers and the recommendations and analysis presented to members is for the exclusive use of members.