Looks like the End of the Beginning
No bull market yet but the slide in global markets has surely been arrested. New York closed in the green yesterday so too did Asia and the EU markets. The US administration has hinted that a trade deal; with China is in the offering and markets have taken their cue. Stay tuned to this Wild West saga because it is far from over. We are still in the early innings of this game but the end of the beginning has arrived.
Unrelated to the lowering of rhetorical temperature between the US and China on the trading dispute front, the Russian Ruble is losing value faster than it has since the Crimean putsch. The US is likely to attack Syria and do extensive damage to Russian assets and prestige in the process. 48 hours ago the Israelis attacked a Hezbollah munitions dump. This is hardly news as the Israelis have been doing this systematically fort years since Syria fell apart in 2011 What is news is that the Israelis hit the enemy located at, and operating from a Syrian base from which the Russians operate as well. This is a major change and escalation of Israeli involvement in the region.
Strong NASDAQ Performance
US equities finished strongly yesterday and are likely to continue the movement today as well. A great deal of the recent declines were related to the fears generated by the US administration’s trade slapping tariff fight with the Chinese, which looks for the time being, to be pausing. We are looking for profit on this trade which is hourly and end of day strictly, this is no market to be taking long term positions in, between 6616 –6631 with stop loss between 6589 – 6559.
Merck Pharmaceuticals, both in Europe and the USA have peaked stunningly yesterday and today due to some positive second and third stage large scale trial results published yesterday. Yesterday as we picked this up on our radar we signaled the trade in the US and today for the Merck traded in Europe. These signals pertain to Europe, we seek our profit today between 81.06 – 81.51 with protective stops between 80.27 – 80.13. Keep your eyes on the stock as it rolls in the US trading session as well today.