Stocks Climbed Amid Stimulus Hope and Improved Earnings

STATE OF THE MARKETS

Stocks climbed amid stimulus hope and improved earnings. US equities climbed higher on the back of improved earnings reported by major banks and corporations; fueled by Treasury Secretary nominee Janet Yellen’s statement to the Senate that America need to “act big” to save the Covid ridden economy. The benchmark 10Y yield slid lower, below 1.10%, as more than $68 billion flowed into the Treasury coffer.

The risk-on sentiments, sent crude higher on the hope of improved demand as vaccine roll-out completed by mid-summer. The black gold closed nearly $53/bl with more than $200 million worth of block orders in the futures market. Gold retained bidders as new stimulus raised concerns of rising inflation. The yellow metal advanced higher, breaking $1850/oz, in the early Asian trading, Wednesday.

In the FX space, the greenback took a pullback in the short-term, while remain well supported in the medium-term. The global reserve currency took a step back in the long-term accounts, paving way to Kiwi and Swiss, while remain supported by Yen and Euro.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is 
weekly and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

OUR PICK – Cronos Group (CRON, NASDAQ)

Cannabis is overrated and has a long way to go.  When cannabis was legalized in Canada and certain states in the US, “weed stocks” as they called it, was the craze of the day. Now that with Democrat in control of the House, Senate, and the White House; talk is high that cannabis stocks are making a come back. Indeed, since the beginning of November last year, the sector has rallied massively by 40% to 150%, surpassing the markets 15% return. With Q4 earnings coming in March, we see Cronos making a pullback after bearish engulfing candle on Tuesday, suggesting a sell on rally for the short to medium term with $12 stop. In the long term, however, we see Cronos has a room for further growth.

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