Today’s Key Market Drivers: 17th October 2018

“S&P 500 rallies back to close above it’s 200 EMA.”

Provided you focus on quality blue chip shares investing in the stock market as an independent trader can be an extremely lucrative investment vehicle. Trading stocks is where I cut my teeth as a trader 18 years ago and on Thursday evening at 8.00pm (Sydney time) I am going to walk all members of LTG GoldRock through a process that will teach you exactly how to buy quality bluechip shares when they are out of favour with the market and shares that provide large profit opportunities over time. Shares that in most cases pay a dividend, shares that you can hold with confidence and shares that usually bounce back the quickest after stock market corrections. I have been waiting for months to teach you this but I have wanted the stock market to pull back so I can show you some great examples of blue-chip stocks that I want to add to my own portfolio. Look out for the login link in your email inbox and join me for this special member only training session. It will be 8.00pm (Sydney time) on Thursday 18th October.

In one of the biggest one-day rallies since March, US stock indexes have powered back higher on Tuesday with the Dow Jones rallying 547 points or 2.17% and sending the safe haven assets such as the Yen lower. What was notable was the strong buying pressure into the closing bell on Wall St and you’ll see in my daily video update today the S&P 500 daily bar is a full engulfing bullish bar without any price drop from Monday’s close. Tokyo closed up 1.5% giving European traders a positive lead to follow and by the end of the European trading session it was green everywhere with the FTSE in London up 0.50% and the German DAX up 1.4%. As Tuesday’s trading session unfolded the safe haven currencies began to weaken with the Yen retreating as base currencies such as the NZD, AUD, EUR, CAD all rallied against it. The US Dollar continued to weaken also as demand for the greenback slowed with the US 10 Year Treasury Yield consolidating at 3.16%, well off its high of 3.24% hit this time last week. If the yield spikes up again in coming days then stocks will likely weaken again and I have not changed my view that over coming weeks we will see new lows on global stock indexes. A one-day rally like we saw on Tuesday does not signal a complete reversal in the key fundamentals that triggered the sell-off, to begin with. The core fundamentals behind the move lower on stocks still remain.

Today sees the release of UK CPI data which will be important for the Pound in the short to medium term. You saw how the Kiwi Dollar reacted yesterday to the better than expected New Zealand inflation figure so a positive CPI number in the UK today will see traders continue to buy back into the Pound. Asian stock indexes will follow Wall Street’s lead so expect another positive trading day in Asia. Look after your risk management and get excited about Thursday nights live training with me, I’d love to show you how to buy great companies at the right price.

Any trade updates throughout the day will be sent via Trade Time. You can also follow my daily updates on Facebook, Twitter, Instagram by searching for TrainwithAndrew. Make sure you subscribe to the Andrew Barnett YouTube channel after watching today’s Sunrise video below.

Click on the below image to play today’s Sunrise video.

 

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

If you would like to speak to one of our Senior Client Advisors regarding the relative client opportunities offered at LTG GoldRock and how you can follow along with our Professional traders each day in our live trading room please contact us today or you can register for one of our a live coaching and trading webinars by clicking here.