Daily Analysis: US Stocks Hit New Highs as Europe and Credit Rebounds

Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2596 0.65%
DAX 13167 0.83%
WTI Crude Oil 57.09 0.44%
GOLD 1282.00 0.41%
Bitcoin 8067 -2.19%
EUR/USD 1.1742 -0.10%

The brief correction in US equities is a thing of the past now as the major indices are back at their all-time highs, even as the majority of the stocks are still not following the trend in the most valuable names. Only about 60% of the individual stocks are trading above the 200-Day moving average, which is one of the lowest participation ever at a record high. That said, until the technical trend is intact, shorting a bull market is a frustrating and costly hobby, but reducing exposure on the way up is still advised.

NASDAQ 100 Futures at All-Time High, 4-Hour Chart Analysis

High yield bonds, which caused a slight scare last week, are also up so far on this Thanksgiving week, and as trading will likely collapse towards the end of the week, volatility will probably follow in suit. While the flattening of the yield-curve continues unabated, hitting levels not seen in a decade, the Dollar is relatively quiet and all in all risk-on sentiment is stable. European stocks are higher as well, although they are well of their previous highs, while Asia also showed strength after last week’s more volatile days.

DAX Index, 4-Hour Chart Analysis

Currencies were little changed amid the declining volumes, with the Greenback losing some ground while the Pound holding on to its recent rebound, as hectic trading continued in the currency. The Yen’s strength is still apparent despite the global stock rally, as the Middle East situation is still fragile, and credit markets are also signaling some defensive shift despite the current rebound, helping the safe-haven currency together with gold.

USD/JPY Sliding Lower, 4-Hour Chart Analysis

Cryptocurrencies

Bullish price action continues to dominate the segment, despite today’s brief sell-off, as Bitcoin is still trading near $8000, while altcoins are getting close to their record highs one by one. Today, Dash hit a marginal new high above $500, while Monero and Ethereum got slightly closer to their respective record price levels thanks to the rebound in the second half of the session. NEO suffered the steepest losses during the pull-back, and it failed to recover together with the rest of the market, while Ripple and Ethereum Classic were also relatively weak, and IOTA is trading well below yesterday’s highs as well.

DASH/USD, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
2:30 AUSTRALIA RBA Meeting Minutes
14:30 CANADA Wholesale Sales -1.2% 0.6% 0.4%
17:00 US Existing Home Sales 5.48 mill 5.42 mill 5.37 mill

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
15:30 US Core Durable Goods 0.4% 0.7%
15:30 US Unemployment Claims 241,000 249,000
17:30 US Crude Oil Inventories 1.9 mill
21:00 US FOMC Meeting Minutes

Featured image from Shutterstock

Disclaimer:  The analyst owns stocks, corporate bonds, gold, and cryptocurrencies. 

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.