JP Morgan and Fed Meeting | 15 декабря 2017

Forecast for the week from December 11th through December 15th:

BTC:

Bitcoin is outrageous! Its capitalization reached 248 billion US dollars. However, we believe that new records are still ahead! Consider buying Bitcoin for two reasons. First of all, on December 18th in Chicago launch of bitcoin futures trading will be announced, which will cause new wave of digital currency growth. So, till this day cryptocurrency is likely to grow and on December 18th we are likely to observe volatility burst. Second of all, risk assets demand is not dropping, which also has positive impact on bitcoin. Previous week VIX S&P500 decreased by 16%, which shows that investors are not scared. Trading signals: Buy 14900/13500 and take profit 17500.

Brent:

Consider buying oil for two reasons. Firstly, Friday USA employment statistics indicates that Fed may take a pause in rate hikes cycle in early 2018, as average earnings data did not show significant growth in November. That's a bad signal for greenback and a good signal for the rest of the commodity assets, as goods have inverse correlation with US dollar. Secondly, in USA oil inventories cut was observed for the past 3 weeks, which is positive for the market. It's worth to mention that share holders of several American companies producing shale oil announced that corporations managements should pay more attention to the quality of oil but not to number of oil rigs. Rigs are expensive and their cost-effectiveness is low. That's a signal for oil market, that in 2018 oil production in USA will drop, which will be good for oil rates. Trading signals: Buy 63,00/61,95 and take profit 64,53.

JP Morgan:

On the previous week shares of the largest American bank increased by 1,09% along with S&P500 growing by 0,35%. JP Morgan securities look better than the rest of the market and this tendency is thought to continue this week. The key growth driver will be USA Fed meeting. At the moment market is anticipating Fed rate hike by 0,25% on Wednesday, December 13th. This event is likely to cause growth of interest income of all the American banks. Especially JP Morgan will benefit from it, as it's the largest American bank. Trading signals: Buy 105,50/103,75 and take profit 108,01.