Trading online: The week ahead

The previous week was a great week with the DOW closing at 13,208. The economic data was mostly positive during the course of the week and the DOW kept moving up. The great jobs report was the chief reason for this positive outlook. Although unemployment increased to 8.3% in the USA, the tremendous increase in jobs provided the much needed boost. There was some concern across the pond in Europe.

The Euro zone is still precariously poised and there are some serious unresolved issues. The economic figures are not good for the Euro Zone as a whole and even the German economy is beginning to show signs of strain and weakness. The Spanish bond yield are still painfully high and the Italian bonds are not doing too well either.

The euro zone leaders have promised much but delivered very little and the markets are becoming very jittery and even Mario Draghi may not be able to jaw bone the Euro upwards again.

The Euro finished the week lower against most of the major currencies. It ended the week at 1.2290 and the downward trend is likely to continue. However, watch out, as there is a general feeling that the Euro zone leaders are likely to take action. The upward trend on the DOW is likely to continue although you may see a slight pullback at the beginning of the week. The DOW should easily reach 13,300. That is the one-year high.