Stocks Rebounded on Improved Risk Appetite

STATE OF THE MARKETS

Stocks rebounded on improved risk appetite. US equities rebounded on Thursday as investors appetite returned after strong earnings reports plus better economic data. Continued rise in home sales, significant reduction in jobless claims and better than expected earnings for Apple, Facebook and McDonald’s sent the Dow (+0.99%) up 300.2 points, Nasdaq (+0.50%) up 66.6 points and S&P500 (+0.98%) 36.6 points up. The 10Y yield was also up to close around 1.05% compared to 1.01% on Wednesday as optimism improved.

Crude however, remain depressed, below $52.25, as markets took a wait and see attitude on the impact of Saudi’s production cut initiative. Saudi Arabia took a voluntarily output cut of 1 million barrel per day for February and March as part of the OPEC+ deal to hike the black gold price. The yellow metal gold, on the other hand, remained firmly bid around the $1840.80/oz as investors see rising inflation on the horizon when US senate approved the new $1.9 trillion stimulus plan.

In the FX space, Dollar continued it’s short-covering trajectory as demand for the long term accounts notched higher while short term accounts took a breather. Demand for the comdolls were seen deteriorating in the long term while Sterling and Euro hold steady. Improved risk appetite has sent the safe-haven Yen and Swiss to the back burner while long term outlook remains steady.

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

WALL ST TOP FLOWS

** % change here refers to volume

TOP 5 BLOCK ORDERS

OUR PICK – No new pick

No new pick going into weekend.  Our pick USD/CHF closed on breakeven for the short term while stop loss for medium and long term buy setup is updated to 0.8830. Gold stop is updated from $1,810 to $1,820 while CRON short is already on breakeven. PFE played out as expected and is on the way to $35.50 where we expect heavy bidding. We would wait for reversal signal before committing any longs. T has already reached short term TP1 and stop is updated to 28.40 while USD/CAD was stopped out. EUR/JPY has reached short term TP1 and medium term stop is updated to 125.70

Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.