Potentially Rising US Interest Rates,

Gold Basing Dow Jones Stalling

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The US non-farm payroll numbers came in much higher than expected on Friday, Asian time. They came in at 288,000. This appears to be a turning point for the US dollar and US markets.

We at Invast think that the market will slowly start to position themselves over the next few years for rising US interest rates and the real impact on this is pressure on valuations for all other risk assets.

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The Fed will continue to taper and wind back.

However, the Fed will find it very difficult to

completely distance itself from an eventual

increase in US interest rates. Consequently,

this will have a profound impact regardless of

what instrument you are trading.

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We initially saw a major rally in the US Dollar

against the Euro literally gap 40-50 pips and

then made up for lost ground. According to

Vito Henjoto, the key point out there is that

the market will now start to reposition for

high US interest rates. They will not happen

immediately but there will be increased

commentary around major currency pairs,

major interest rate assumptions and the

impact on the stock markets.

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In connection to these, we

• maintain our view that the Dow Jones

Industrial Average on a risk reward basis is

very unattractive at current levels.

• maintain our short position and we have

articulated that view to clients this week in

our Invast Insights report.

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• have gone through and we have spoken

about recent reports particularly larger

index constituents for the Dow Jones, how

they have reported and where we see the

Dow Jones going.

• have updated our technical outlook. We

have also updated our portfolios. Our 3

portfolios are all positive and in fact our

best performing portfolio is the most

conservative one in Invast Insights.

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We are seeing some very attractive

opportunities in the Spot Gold market and we

will be articulating those views in line of the

US non-farm payroll numbers which just came

out and what that all means for Gold and

other metal prices .

We think this is perhaps the most important

week to position your portfolio for this data.

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The very smart money is now starting to

position for an increase in US interest rates

over the next few years and the non-farm

payroll number that came out on Friday was

really reinforcing that.

Traders involved in the market always need to

know what events are unfolding and how that

might affect the decisions they make in their

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portfolio. Therefore, it is essential to get a

snapshot of what will likely move the market

this week. This will give you a great

perspective on what to expect irrespective of

whether you trade the ASX stocks, Forex,

Indices, Commodities or international markets.

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Need more information about US interest

rates, gold basing and Dow Jones? Read

through the Invast Blog today.

Disclaimer:

Please note that any advice given is general in nature past performance is not

indicative of future performance.