Daily Analysis: US Stocks Hit New Highs as Europe and Credit Rebounds
Tuesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||57.09||0.44%|
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
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
|2:30||AUSTRALIA||RBA Meeting Minutes||–||–||–|
|17:00||US||Existing Home Sales||5.48 mill||5.42 mill||5.37 mill|
Key Economic Releases on Wednesday
|15:30||US||Core Durable Goods||0.4%||0.7%|
|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.