Here are two fun facts from equities in 2020.
· The NASDAQ returned 46% from the start of 2020. If you purchased at the peak of the recessionary period in mid-March, you would’ve made a return on investment of 85%.
· Meanwhile, the S&P500 only returned 17% from the start of 2020.
· The average price/earnings ratio for stocks in the NASDAQ was pushing 23
· The...
The Dollar has been experiencing some love coning into the new year, with the DXY up just under 1%. However, is this just a technical rebound, or is there substance for a further rally?
Technical show the Dollar is in a historically congested
The DXY is currently in a zone where the Dollar has historically consolidated before making a move lower or higher,...
With the new strain of the Coronavirus causing concern across the world, many countries that continue to battle the Coronavirus hope that the vaccine gives them a head start before the strain does any more damage. This week will also see a new President take office, Democrat Joe Biden, on the 20th January US Local time. Here is your week ahead.
All dates are in...
It has been 15 days into the new year, but it feels like a year’s worth of events has already occurred. Most notably:
Capitol Attacks from Pro-Trump protesters
Tesla, a company that technically does not make a profit (without the help of regulatory credits), is worth around $800 Billion, around about $100 Billion less than Facebook. Elon Musk is now the...
Like Tesla, Gold has had a legendary 2020. Gold reached all-time highs just shy of that $2,080/Oz mark before retracing in the latter part of 2020.
Gold ETF’s Ballooned to over $550 Billion inflows, to the point where Gold ETF managers had nowhere to store the Gold they purchased for the ETF’s.
With Gold at around the $1,850/Oz mark, investors and traders wonder...
24th February 2020 was when the last time we saw oil hovering around the $55.80 mark. The Oil markets were hammered in 2020, taking investors and traders back to their economics 101 classes.
However, unlike traditional markets, the Oil markets have something traditional markets do not – controlled supply.
OPEC+ controlling the supply of Oil
OPEC+, a 24-...
Hello! I hope you guys had a good Christmas and a Happy New Year, refreshed for the trading year. Before your week ahead, here is what you may have missed over the break.
Vaccine rollouts have started all across the world, primarily in the United States and in the United Kingdom
OPEC+ Implemented a surprise cut that has become a tailwind for the price of...
Margaret Keenan. At 90 years old, she was the first patient in the United Kingdom to receive the Pfizer-BioNTech. The CEO of England’s NHS, Simon Stevens, stated that “I think there’s every chance that we will look back on as marking a decisive point in the battle against the Coronavirus” You would have thought we should have seen a massive spike in the markets....
All eyes will be on the UK’s rollout of the Pfizer-BioNtech vaccine this week ahead, as the first western country to approve a Coronavirus vaccine starts to vaccinate front line workers. However, the NHS medical director warned the vaccine distribution would be a “marathon, not a sprint” and that it will take “many months” to vaccine everybody who needs it. Is...
The Cable rallied to 1.3497, the highest it has been since 2019. This is shy of that healthy psychological resistance level of 1.35. Strong dollar weakness, alongside risk on consensus, has compounded to push the pound higher.
GBPUSD pricing in Brexit
Furthermore, with Brexit negotiations in full swing, there is hope that a deal will occur before year-end,...
Is this the beginning of the end? The UK announced yesterday that they have provisionally approved Pfizer’s Coronavirus vaccine. This makes the UK the first country to approve a vaccine, which they state will be available to individual members of the public by next week.
Vaccine rollout next year
Simon Steve, Chief Executive of the NHS, stated that the bulk of...
Stocks reach all-time highs on vaccine optimism. The NASDAQ 100 and the S&P 500 are up 1.75% and 1.39%, respectively, with financials, utilities, and communication services being the largest gainers. The Dow Jones is also up around 1$ – however, still below that 30,000 mark. Across the ditch, cyclical in the UK was getting a bid, up around 2% after Goldman Sachs...
EUR/USD hit 1.20 on the last trading day before bouncing off the strong psychological resistance level. This is due to further dollar weakness alongside investors pricing in aggressive quantitative easing from the Fed outpacing the European Central bank. The EUR/USD is up around 2.3% this month.
EUR/USD will be boosted once a Vaccine is passed
Moderna is...
The oil markets have been seeing the light as of late. Oil prices have reached an eight-month high, with WTI and Brent Crude trading around $45 and $48. This is from the recent positive vaccine news, alongside better than expected EIA data and geopolitical supply-side tensions.
Oil supply and demand fundamentals are getting brighter
Peter McNally, global head...
Gold continues to fall on positive vaccine news, as both Pfizer and Moderna reveal trials that show 90%+ efficacy vaccines against the Coronavirus.
Gold breaking key technical factors
Gold breached a fundamental Fib level at $1,835, looking for a next internal support/resistance level at $1,800 and the 50% retracement level at $1,761.
Gold flowing out of...
There’s a saying the markets have adopted over time: “Buy the rumor, sell the news.” And the cryptocurrency market is no exception. Bitcoin has recently propelled itself to $18,000 – with minimal coverage on the news if we compared its coverage in 2019. However, another rule that I personally go by – If your mum is talking about it, it’s a strong signal to sell....
Two main fundamental factors depressed the GBPUSD for the past couple of years—Brexit, and now recently, the Coronavirus.
The trade is relatively simple – once there is a vaccine for the Coronavirus, alongside certainty on Brexit talks, a good case can be made for the pair to reach its Pre Brexit/Pre Coronavirus levels around 1.45
Pound needs to meet two...
Dollar is going one way once the vaccine is out
The dollar has fallen from grace from the peak of the Coronavirus. The dollar index is down 10% from its yearly high in March, where traders and investors went to cash.
However, with two strong positive results from two vaccine makers Pfizer and Moderns with their 90% efficacy with their vaccine trial, solid news on...
