Most of us in planning our annual leave during the winter break by default consider the first week of January to be part of the holiday package. Using those few days after New Years day as a way to ease our way back into action. The following week is when all hands are on deck, however this logic went out of the window fast this time around.
2019 has started with a bang. From the flash crash involving the Yen, to the $5bn forecasted drop in Apple’s revenues, all while the US government is still facing a shutdown. However, a jobs day of 312k, came in almost more than doubled most estimates, helped stop the bleeding as markets started to recover.
This was likely one of the biggest moves we’ve seen since the 2016 flash crash, or even possibly the Swiss Franc move. Many said this could have been fundamentally driven, however, with th technicals on hand the drop stopped at $104, which had been the long-term support point since 2014.
With the chaos ensuing in currency and equity markets Gold benefited with a week long bull run. This helped the metal breach it’s $1,261 resistance, before running out of gas at $1,285 thanks to the strong jobs numbers, and this level also appears to be a resistance zone. As forecasted in my 2019 preview many see this potentially heading to $1,371 in the next few months, and this week’s run assisted that narrative.
With most of the volume expected to return back to the markets next week, it seems the fun and games for 2019 are about to commence.