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US500cash

What’s behind the mania in stocks? – Special Report

Posted on February 16, 2021 at 11:46 am GMT

There’s something different about this booming stock market, especially when one looks at all the madness under the hood in small-cap and penny stocks. Several reasons have been floated to explain this phenomenon, from cheap money policies to massive government spending to the rise of small investors. It looks like a bubble, but the thing about bubbles is that they can last longer than anyone thinks possible. The only game in town The equity market has staged an epic comeback [..]

Daily Market Comment – Stock markets refuse to retreat, FX arena quiet

Posted on February 12, 2021 at 9:49 am GMT

Equity markets stage a late comeback after Biden boosts semiconductors Euro/dollar caught between conflicting narratives, currencies quiet overall Most of Asia off for Lunar New Year week – thin liquidity implies risks Biden halts stock market retreat Equities were headed for a red session yesterday before news broke that the Biden administration will try to alleviate the shortage in chips, lighting a fire under semiconductor stocks that ultimately saw the whole market close higher. Soaring consumer demand for electronics during [..]

Daily Market Comment – Cautious Fed and tame inflation unable to lift markets

Posted on February 11, 2021 at 9:30 am GMT

Stocks virtually flat despite promises of endless Fed liquidity FX quiet too as traders search for the next big theme US jobless claims and Disney earnings top the agenda today Is the stimulus narrative losing its bang? It was a quiet session across global markets, with most equity indices closing virtually unchanged near record altitudes and the prominent currency pairs trading in narrow ranges. Sometimes though, the lack of action itself speaks volumes. Investors had their gaze locked on the [..]

Daily Market Comment – US inflation and Powell speech could spice things up

Posted on February 10, 2021 at 9:23 am GMT

Dollar remains under pressure, stocks hover near records in a quiet session Markets still driving in risk-on gear as stimulus hopes grow stronger But US inflation data and Powell’s remarks could spark volatility today Risk-taking still the dominant force It was a quiet session in global markets, without any real news to drive the action. The same old stimulus stories continued to circulate, encouraging investors to take on more risk. The overarching theme lately is that the Democrats will push [..]

Daily Market Comment – Stimulus euphoria floods global markets

Posted on February 9, 2021 at 9:24 am GMT

Stock markets conquer new heights as usual themes remain in play Dollar continues to retreat, unable to draw power from rising yields UK turns into the G10 vaccine champion, Cable breaks higher Gold gets its feet under it as inflation whispers depress real rates The party that never stops The stock market has gone on an absolute rampage. All of the major US indices continued their incredible bullish run to reach new record heights on Monday, with stimulus hopes and [..]

Daily Market Comment – Nonfarm payrolls give dollar a black eye, but stocks roar

Posted on February 8, 2021 at 9:35 am GMT

Disappointing US jobs report knocks dollar down Yet, bad economic news is good news for stimulus and stocks Concerning vaccine headlines go unnoticed, inflation on the radar Softer labor market strengthens case for tremendous relief The US employment report fell short of expectations, feeding the narrative that the recovery in the world’s largest economy is starting to plateau. Nonfarm payrolls clocked in at 49k in January, almost in line with the forecast, but clearly some investors were expecting more as [..]

Week Ahead – Can the dollar and stocks keep climbing together?

Posted on February 5, 2021 at 12:50 pm GMT

It will be a quiet week, without any central bank meetings and only a handful of data releases. Some remarks by the Fed chief could attract attention, but the overall focus will remain on Congress, where the new relief package is finally taking form. The question for markets is whether the narrative of US economic exceptionalism can continue to push both the dollar and equity markets higher, and whether the dollar is slowly losing its safe haven status, becoming more [..]

Daily Market Comment – Stock market rebound fizzles out, but FX remains calm

Posted on January 29, 2021 at 9:26 am GMT

Wall Street set to open in the red, erasing latest rebound Overall, nothing has changed, so risk aversion could fade soon Yen crumbles after BoJ signals, but broader FX market relatively calm Fear grips Wall Street again What a crazy week. An assault by small investors weaponizing call options against hedge fund short positions sparked all kinds of volatility and some legendary short squeezes in smaller stocks. The ripple effects were felt across markets as some funds were apparently massacred [..]

Daily Market Comment – Markets sink despite Fed tranquilizer

Posted on January 28, 2021 at 9:25 am GMT

Stocks suffer, dollar shines amid whispers of hedge fund slaughter Fed plays down tapering speculation, but unable to calm nerves Euro on the ropes as ECB rate cut speculation returns US GDP data coming up today amid peculiar earnings season Short squeeze epidemic forces hedge fund liquidations The sound you are listening to is the stock market cracking from within, as a few funds liquidate their books to cover losses on their short bets, which retail traders have pushed to [..]

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Technical Analysis – US 500 index charts its biggest daily loss in seven months

Posted on January 28, 2021 at 8:23 am GMT

The US 500 stock index (cash) erased January’s gains in one day and slumped to a three-week low of 3,711 after the 3,855 bar proved to be a tough resistance to overcome. That was the biggest daily loss since June 12. The touch with the 50-day simple moving average (SMA) brought the calm after the storm near the 23.6% Fibonacci retracement of the 3,233 – 3,869 upleg. However, given the negative slope in the RSI, which has dipped below its 50 neutral [..]

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