Today, the US Jobs report was released, and while it was a positive report, stocks are still declining. With global economic conditions, the oil crisis, and the Federal Reserve all causing pain, it looks like declines may continue. Today, we'll talk about what we saw from the US jobs report, factors that are pushing US stocks downward, what we can expect to see moving forward, and how binary options traders can take advantage of the trends.
US Jobs Report Proves To Be Overwhelmingly Positive
Jobs growth is important to just about any market. After all, when companies are making more sales, they need to hire more employees to fulfill orders. In the United States, the jobs report is considered positive if more than 200,000 jobs are added to the economy on a monthly bases. Today, the US jobs report for the month of December was made available. In the month of December, 257,000 jobs were added to the United States economy. This figure blew away expectations. In fact, every sector in US jobs saw growth with one exception, the energy sector.
Even After A Strong Jobs Report US Stocks Decline
While the strong jobs report is positive news for the market, we're not seeing the response that we would normally expect. In fact, the US market is seeing declines. The Dow Jones, S&P 500 and NASDAQ are all experiencing losses today. So, why is this happening? Well, there are three reasons…
Conditions In China – China has been a big story over the past few trading sessions. Recently, the Chinese stock market saw a sell off of nearly $600 billion; making it one of the worst sell offs in Chinese history. This sell off has bled into the global market space, helping to push US markets as well as others downward.
Oil – Oil continues to slide as Saudi Arabia recently made a decision that would allow them to balance their finances while keeping up the high production, the US lifted the oil export ban, and production around the world continues to outpace demand. Because oil is the key driver for energy stocks, this is also helping to drive the US market downward.
Federal Reserve – Finally, the Federal Reserve recently made the decision to increase its interest rate and is planning on more increases throughout the year 2016. This decision only adds pressure to the market.
What We Can Expect To See Moving Forward
While I hate to be the bearer of bad news, I have to say that hopes aren't very high for the US market moving forward. Unfortunately, I believe that declines will continue. The reality is that low oil prices aren't likely headed upward any time soon. Also, with added pressure from the Federal Reserve, fear is more than likely to continue to be the overwhelming emotion in the market. While there will be good days here and there, I believe that the overall trend will be downward.
How Binary Options Traders Can Take Advantage Of The Trends
As binary options traders, it's our job to predict where financial assets are headed. In this case, several opportunities are making themselves clear. To take advantage of the trends, watch trend lines on all 3 blue chip indices in the US. They include the Dow Jones Industrial Average, S&P 500, and NASDAQ. When the values near the resistance trend line, start purchasing push to follow the resulting trends down to the profits! Keep informed and check out the latest business world news.
What Do You Think?
Where do you think the US market is headed and why? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]