Market Wrap: Stocks, Bonds, Commodities
US indices fell on January 29 after COVID-19 vaccine data from Johnson & Johnson hurt sentiment, while a standoff between Wall Street hedge funds and small, retail investors weighed in.
Melvin Capital Management, the hedge fund that has borne the brunt of losses from the soaring stock prices of heavily shorted stocks recently, lost 53% on its investments in January, according to people familiar with the firm.
The Dow Jones Industrial Average was down 404.60 points (1.32%) at 30,198.76, the S&P 500 was down 47.75 points (1.26%) at 3,739.63, and the Nasdaq Composite was down 139.68 points (1.05%) at 13,197.48.
Asian shares wavered on February 1 amid worries that problems with vaccine rollouts combined with new strains of COVID-19 would delay a global economic recovery that has already been baked into the market’s rich valuations.
MSCI’s index of Asia-Pacific stocks outside Japan rose 2.10% to 895.33 levels. Australian index advances 0.84% to 6,663.00. Japanese Nikkei traded 1.55% higher to 28,091.10.
European stocks were advance on Monday, with the Stoxx Europe 50 Index gained 1.02% to 3,5165.95, Germany’s DAX rose 0.98% to 13,565.35 and France’s CAC higher 0.61% to 5,439.65 and U.K.’s FTSE 100 advance 1.05% to 6,444.51.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.90% to 1.084.
Oil fell in early Asian trading — after the first back-to-back weekly decline since October — amid fresh evidence that a resurgence of the coronavirus is taking a toll on economic growth and energy demand.
Spot Brent crude Oil up 0.82% to $55.45 per barrel. US West Texas Intermediate crude advance 0.54% to $52.48 a barrel.
The yellow metal traded 0.77% higher to 1861.30 dollar per ounce.
Market Wrap: Forex
The safe-haven dollar found support at the start of a new week with traders remaining wary amid the battle on Wall Street between hedge funds and retail investors.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.23% to 90.740.
The Euro US Dollar (EUR/USD) widely traded pair slipped 0.33% today. This left the pairing trading around $1.20960.
The Japanese yen fell against the U.S. dollar on Monday as stock pushes higher. Today US/JPY rose 0.17% to 104.870 level.
Other commodity-related currency lower against U.S dollar, AUD/USD lost 0.05% to 0.76390 and NZD/USD fell 0.14% to 0.71800.
EUR/USD Intraday: Support at 1.21210
Our pivot point is at 1.21210
Preferable Price Action: Take Long positions above pivot level with targets at 1.21450 & 1.21600 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20980 & 1.20830.
Comment: Pair above its 55MA & 20MA an RSI at 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Break resistance level
Our pivot point is at 1.37250
Preferable Price Action: Buy positions above pivot with targets at 1.37750 & 1.38000 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36770 & 1.36530.
Comment: Price above its 55MA & 20MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Major trend on the upside
Our pivot point is at 104.550
Preferable Price Action: Buy position above with the target at 104.890 and 105.090 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.200 and 104.000.
Comment: price above 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Support at 0.76420
Our pivot point is at 0.76420
Preferable Price Action: Buy Positions above pivot with targets at 0.76740 & 0.76940 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76100 & 0.75900 as targets.
Comment: Pair above its 20MA & 55MA and RSI at 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: In a consolidation zone
Our pivot point is at 52.20
Preferable Price Action: Above pivots buy Oil with 52.90 & 53.30 as targets.
Alternative Price Action: Sell crude below pivot with targets at 51.50 and 51.10 in extension.
Comment: Crude above its 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Support at 1861.00
Our pivot point is at 1861.00
Preferable Price Action: Further upside to 1870.00 & 1876.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1852.00 and 1846.00.
Comment: MACD in positive territory and price above 55MA & 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Bias on the upside
Our pivot point is 30,060.00
Preferable Price Action: Take buy positions above pivot with targets at 30,350.00 & 30,550.00 extension.
Alternative Price Action: Below 30,060.00 looks for further downside to 29,780.00 & 29,580.00.
Comment: Price above its 20MA & 55MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced7