The Dow Jones Made History in July Trading at Over 17000 Points during the Beginning of July 2014

The second quarterly reports season of 2014 in July opened with Wall Street indicators registering new records.

The main question was whether corporate profits would justify the continued rise? Data published earlier in the month by the US Labor Department showed a sharper increase than expected of 288 thousand jobs to the job market in June, and a decrease in the unemployment rate that fell to 6.1%. According to economists’ estimates, companies report to the second quarterly was supposed to maybe a pleasant surprise.

Analysts that participated in the Thomson Reuters survey expect 6.2% growth in profits of the companies in the S & P 50 0 in the second quarter.

The Far East trading week opened rates declining slightly on the 7.7.2014 & the Shanghai, China stock market decreased 0.34%. Christine Lagarde, the International Monetary Fund chairman said she did not expect a sharp slowdown in China and that the world economy was expected to strengthen in the second half of the year and even more in 2015.

In the commodities section, oil continued to arouse much interest with the sensitive geopolitical situation in the Middle East during the beginning of July. The crude oil price per barrel lowered and price was locked at 103.77 USD per barrel on that morning. During June the crude oil price set a high price of 107.65 USD per barrel.

Pound – Dollar (gbp/usd)

The pound that made the highest rise since the beginning of the year kept growing stronger than the dollar as well breaking the high record from 2009 trading for the high of the last five years. Most predicted the continued strengthening of the Pound vs. the Dollar towards 1.7350 with a correction option up to 1.6780 during the day.

Australian dollar – American dollar AUD/USD

The Australian dollar that maintained the structure of price descends in the main and long trend and again reached a resistance level of 0.9440 during the day which was a correction of 38.2 in the Fibonacci bar of the last decrease, it stopped and weakened all through the week before.

In lower time resolutions you could have recognize a double peak after a false break through.

Economic data from 7.7.2014:

09:00 - Monthly industrial production – Germany
15:30 – Monthly building permits – Canada
17:00 - Purchasing managers index – Canada

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