Bond rates showed that most major investors in the U.S. economy believe that the Federal Reserve will raise interest rates in December. In what one analyst described as a “bloodbath,” 10 year U.S. and euro zone bond yields were seen increasing to the highest point that they had seen since May of 2016. In England, British yields pointed to the biggest one month gain that’s been seen in more than seven years, and showed no signs of a quick reverse.
The shift to treasury bond purchases away from stocks will likely continue on a gradual basis until a final decision about rates is released in December, granted that the fundamental information keeps the same tone.
The corollary to this is that stock prices around the world have begun to drop sharply as a result of this. Read more “Bond Sales Begin to Surge”
China’s economy has had a rough ride. The stock market has been in freefall at various points throughout the calendar year, and just as things look like they are starting to stabilize in one form or another, another calamity occurs. The latest issue coming from China is the fact that there are warnings of bank failures reverberating throughout the world. A global bank watchdog organization recently warned that certain Chinese banks were at a high risk of failing. Groups like the Bank for International Settlements review banks, and let the rest of the world know which banks are safe, and which are not. According to their most recent quarterly review, many Chinese banks are gauging at three times above the warning level when it comes to a risk of default. Read more “Chinese Banks on Edge”
Both volume and market cap are strong fundamental numbers that will help you to gain a better idea about the movement that a stock shows. As a binary options trader, these concepts will give you a better idea of the strength and momentum behind a particular stock as you start thinking about opening up either call or put options in relation to it. There are a few striking examples that have occurred in the last week or so that can give us a clear example of how this information impacts our ability to make profitable trades.
The first big example here is the Alibaba Group. Alibaba has a market cap of 260.23 billion, and saw an increase in price of 7.05 percent on Friday, August 12th. Much of this movement was because the company had recently been given a higher, revised price target for the next 12 months. Read more “Volume Versus Market Cap”