Dow went up +1,26% on friday, while S&P 500 went up 1,12%. Nasdaq jumped 0,73% and it was a strong finish of the week for all of them. Traditionally, the first week in December is bad, but December is the best month of the year.
Is this tradition going to continue? Most of the indices is up more than 20% so far this year. That is strong. The U.S. indices are in a state of limbo right now. Dow and S&P ended flat of the week, so they are going sideways.
Stocks are increasing as better than forecast export data from China on monday. Some people are concerned about the U.S Federal Reserve`s stimulus package and they belive that the FED will start to taper earlier than forecast. Next FED meeting is December 17 – 18.
The speculation about tapering is reflected in the gold price. Gold prices have dropped about 27% this year, as investors are running from commodities to equities. A gold price of $1200 is still a sensitive level for the precious metal. Hedge fund managers are bearish on gold, and many see a new support for the gold on $1000 – $1150.
There are no major reports today.
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