Highlights

State of The Markets

Author: MFMTeam   |   Latest post: Thu, 24 Jun 2021, 9:30 AM

 

Stocks Mixed As Sectors Rotation Continue

Author:   |    Publish date:


STATE OF THE MARKETS

Stocks mixed as sectors rotation continue. US stocks closed mixed on Wednesday, after Treasury Yellen clarified her remarks on rates hike. Tech Nasdaq (-0.37%) and small cap Russell (-0.31%) dipped deeper, while blue chips Dow (+0.29%) and S&P (+0.07%) climbed higher as investors continue to rotate out of technology to cyclicals sectors. Flight to bonds safety was noted as the 10Y benchmark yielded lower to 1.58% as New York closed.

Crude futures jumped to as high as $66.75/bl after EIA reported significant reduction in US crude inventories, before settled lower, below $65.15/bl; after investors took profits off the table prior to NFP Friday. As of this writing, gold regained earlier losses, continue to climb and test the $1,800/oz amid continued concerns on rising inflation and weaker Dollar.

Dollar rally was stalled after services PMI and ADP employment reported a disappointing figures, that benefits the Comdolls and Sterling for the short term. King Dollar advanced further in the demand territories for the medium and long term accounts, as investors continue profit taking activities in Euro, Aussie and Sterling ahead of the BoE rate decision on Thursday and NFP Friday. Yen was noticed to be synching across horizon as China and Japan re-opens post holiday. Long term remains bearish for growth as investors continue to be on defense.

OUR PICK – XAU/USD

On last leg up before yields have to rise. Rising concerns on inflation has triggered longs in precious metal complex in the last five weeks and we see another leg up, the last one probably, amid Feds that played down inflationary concerns. Obviously markets was not buying the mantra, as gold and silver went up and yields went down. At some point however, Feds has to admit, as have been nudged by Kaplan and recently Yellen; that rates can’t stay low forever. This summer meeting in June would be the the stage where markets expect yields to rise as bonds were dumped amid rising inflation. Investors are not willing to lend the money if bonds can’t beat inflation.

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.

 

Share this

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
 
 

5886  3836  891  244 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 MRIN 3.51+1.80 
 WISH 14.39+0.78 
 TRCH 4.75-0.17 
 SNDL 1.000.00 
 CLOV 13.79-0.04 
 AMC 56.70-1.60 
 F 15.26-0.16 
 DBGI 5.36+1.27 
 SQQQ 9.52-0.18 
 AAPL 133.41-0.29 

TOP ARTICLES

1. CryptoNews of the Week CryptoNews
2. Markets Mixed Amid Conflicting Feds State of The Markets
3. Daily Futures Trading Strategy 24 June 2021 Where Futures Lies
4. Daily Futures Trading Strategy 23 June 2021 Where Futures Lies
5. Wall Street Breakfast: Tales From The Crypto Wall Street Breakfast