The last Federal Reserve meeting of the year | 17 December 2021

#SP500:

Traders are bracing for the last Federal Reserve meeting of the year, with market participants hungry to learn how quickly the central bank plans to finish unwinding its bond-buying program and pick up signs of when it may start to raise rates in 2022. The Fed takes a more hawkish than expected view on rolling back the easy money policies that have helped stocks more than double from their March 2020 lows, including a rapid reduction in bond buying that clears the way for the central bank to raise rates sooner. The S&P 500 which has climbed 25.4% this year, is trading at 20 times forward 12-month earnings estimates, compared with its historic valuation average of 15 times.

Trading recommendation: range 4675 - 4776.

#Oracle:

Total quarterly revenues were up 6% year-over-year to $10.4 billion. Cloud services and license support revenues were up 6% to $7.6 billion. Cloud license and on-premise license revenues were up 13% to $1.2 billion. “Oracle’s Autonomous Database and new MySQL Database with Heat Wave are the world’s two highest-performance databases,” said Oracle Chairman and CTO, Larry Ellison. “Because of their extreme high-performance, both products present huge growth opportunities for our cloud infrastructure business. The board of directors increased the authorization for share repurchases by $10 billion.

Trading recommendation: Buy 97.77 and take profit 102.41.

XAUUSD:

Gold rose as rising inflation lifted its safe-haven appeal, while U.S. Treasury yields were little changed in a sign some bond investors do not see interest rate hikes starting as early as next year's second quarter. The U.S. consumer price index increased 0.8% last month after surging 0.9% in October, while it accelerated 6.8% on an annualized basis to mark the biggest year-on-year rise since June 1982. This report solidifies the view of what the Fed’s path will be. This further alleviates any doubt as to an acceleration of their tapering to come out of this week’s meeting. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 0.3 basis points at 0.68%.

Trading recommendation: buy 1781.50 and take profit 1795.55.