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THE 23rd OF APRIL Market Review

GOOD AFTERNOON

The markets got off to a strong start on Thursday, with the most significant indices up nearly a full percent at the day’s peak. Better-than-expected earnings from Whirlpool, Tractor Supply Company, and AT&T boosted morale, as did a lower-than-expected jobless claims survey. As recruiting activity increased, the number of new jobless claims suddenly dropped to a new low. However, the good news was ruined later in the day when President Biden revealed a new tax package.

President Biden’s latest initiative would tax capital gains on wealthy individuals at approximately 40% to fulfil a campaign promise. The news caused the markets to reverse course, with the S&P 500 losing roughly 1.0 percent by the end of the day. If the market cannot cope with this new growth, a much deeper correction could be in store. The danger now is that stock selling will pick up on Friday, taking the index below its most recent support level.

S&P 500 flatlines while Dow and Nasdaq moderates

The Dow and the major U.S. indexes fell on Monday as the Dow technology stocks tumbled.

Major Wall Street leading indices closed lower at the close, with the Dow Jones Industrial Average (DIA) down 55.20 points, or 0.2%, at 33,745.40.

Losses were concentrated in communication services, information technology, and energy stocks. The broad S&P 500 Index (SPY) of large-cap stocks closed at 4,127.99.

The technology-focused Nasdaq Composite Index (QQQ) rose 0.5% to close at 13,900.19.

A measure of implied volatility known as the CBOE VIX (VXX) edged slightly higher on Monday. The so-called “investor fear index” reached an intraday high of 16.91 on a scale of 1-100, where 20 represents the historical average. It would eventually settle up 1.3% at 16.91.

In commodities, oil prices rose on Monday, with U.S. West Texas Intermediate futures gaining 45 cents, or 0.8%, to $59.77 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, rose 40 cents or 0.6%, to $63.35 a barrel.

In precious metals, gold prices declined on Monday, as the June futures contract dipped $12.60, or 0.7%, to $1,732.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures fell 48 cents, or 1.9%, to $24.85 a troy ounce.

Still, markets continue to be supported near all-time highs despite Monday’s modest pullback. Investors are pushing up share prices on optimism the U.S. economy is regaining momentum.

MONDAY, APRIL 12th Markets Review

With the S&P 500 ending Friday’s session at a new all-time high and near the high of the day and the week, the U.S. stock market closed out the third week of gains on a high note last week. The tech sector led the move even though the NASDAQ continues to lag behind the broader market. Both the Dow Jones Industrial Average and the Transports moved past new all-time highs. Expectations for robust earnings in Q1 drove the markets; however, some suggest that The Q1 earnings are already priced.

As Earnings season starts this week, about 3.0% Of the S&P 500 companies have reported calendar Q1 earnings, and the results have exceeded expectations. Answering the question is whether or not this trend will continue and by what margin. S&P 500 companies that fail to impress could cause the market to correct. Global economies are still being affected by COVID, so there is no certainty, which does not bode well for the stock market.

European stocks slip from record highs ahead of earnings season.

As investors booked profits ahead of the semi-annual earnings season, European and French stocks fell from all-time highs. At the same time, a merger between two French monopolies rose following months of wrangling.

After the two waste management companies agreed to a merger deal worth nearly 13 billion euros ($15.4 billion), Veolia and Suez shares soared 9.7% and 7.7%, respectively.

Technology, travel and leisure stocks, and commodity stocks led to declines for the benchmark pan-European STOXX 600 index, which closed 0.5% below Friday’s record high Friday.

A closer look at upcoming economic data and first-quarter results could justify Wall Street’s sky-high valuations. [MKTS/GLOB]

Analysts expect Europe’s first-quarter earnings to jump 47.4%, according to Refinitiv IBES data. Consumer cyclical and industrial firms are likely to provide a significant percentage of support.

The S&P500 and Nasdaq surged while the Dow Jones staggered.

The S&P 500 and Nasdaq surged on Wednesday while the Dow Jones staggered.
The Dow staggered the broader U.S. stock market on Wednesday, as sinking energy and financials shares weighed on the benchmark index.
Wall Street’s leading indices closed mixed, with the Dow Jones Industrial Average (DIA) declining 85.41 points, or 0.3%, to 32,981.55.
The broad S&P 500 Index (SPY) of large-cap stocks gained 0.4% to close at 3,973.33. Five of the 11 primary sectors ended in the negative area, with information technology climbing 1.5%. Consumer discretionary shares rose 0.8% as a collective.
Meantime, the technology-focused Nasdaq Composite Index (QQQ) advanced 1.5% to settle at 13,246.87.
A measure of indicated volatility recognised as the CBOE VIX (VXX) fell on Wednesday, reversing some of its early-week gains. The so-called “market fear index” moved an intraday low of 18.85 on a scale of 1-100, where 20 outlines the past average. It would ultimately settle down 1.6% at 19.30.
In commodities, oil prices settled on Wednesday, with U.S. West Texas Intermediate futures tumbling $1.21, or 2%, to $59.34 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, fell 60 cents or 0.9% to $63.54 a barrel.
In precious metals, gold prices bounced sharply on Wednesday, as the June futures contract rose $21.40, or 1.3%, to $1,707.40 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures climbed 30 cents, or 1.3%, to $24.44 a troy ounce.
The conclusion: U.S. stocks resume to trade near record highs, encouraged by optimism that the economy is healing from the Covid-19 pandemic. More than 30.4 million Covid cases have been listed in the United States, though the infection pace continues to decline from earlier levels.

Gold Broken Position 1719 Continues Downward 3.30

Gold Market Trend Analysis
  Gold finally broke down after continuous shocks, and it broke the resistance point after falling below the 1719 position, ending the shocking situation and starting a downward trend! 1719 did not break or stand, break the position and turn down. I have repeatedly emphasised the importance of this position. The so-called horizontal is how long and how high is vertical. Gold maintains volatility for more than two weeks. Once broken, it is a waterfall-like trend. Break the position to continue the falling market, follow the trend decisively!

  Previously, gold remained within the range of shocks, long and short, but since yesterday’s break of 1719, the market trend has changed, and you shouldn’t use old strategies to treat the current new trend. It is necessary to adjust the thinking in time and follow the trend! Today is a broken position and chooses to fall, rebound and take advantage of the trend, and the subsequent support position is the 1690 line!

  Gold, which has been volatile for many days, broke out of the US market yesterday. The long-awaited trend signal has appeared. The daily line closed overcast and fell below the support of 1719 in the daily bar. The daily 5-day moving average and 10-day moving average continued to increase in volume. Gold enters a downward mode, so next week, gold will focus on 1719 and 1725 suppression, focusing on the daily mid-track 1725 as the suppression and taking advantage of the trend to fall back. The lower target is 1700/1690.

  In today’s operation, we still focus on the high-altitude rebound. Today, gold focuses on the 1719 suppression position. After the previous support broke, the precious metal formed a resistance. Besides, the resistance position of the first rebound after yesterday’s sharp drop is also below this. The daytime relying on 1719 to suppress the rebound continues. Short, there is still a certain amount of support at the 1700 integer mark. It was also the last time that the callback was supported. However, the short-term support is challenging to change the impact of the short-term decline. It is expected that the short-term adjustment will continue to fall! Empty, the rebound below 1719 continues to be open!

  European operation idea: gold near 1715 is negative, stop loss is 1720, the target is near 1700; if the rebound is unable to continue under pressure, stop loss is at 1715, and the position is directly negative near 1708, the target is broken at 1700, and the broken 1700 rebounds by 3 dollars to continue With nothing!

The CBOE VIX Volatility Index decreased on Wednesday.

The CBOE VIX (VXX) verged lower on Wednesday as U.S. equity markets extended their relief rally.

The Chicago Board Options Exchange Volatility Index, commonly identified as the VIX, reached an intraday low of 21.68 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 7.7% at 21.34.

In stocks, the large-cap S&P 500 Index (SPY) rose 1.1% on Wednesday.

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) This ETN gives investors exposure to the Total Return from the S&P 500 VIX Index. The VIX Index utilises CBOE Volatility Index futures by way of long positions in both first and second-month VIX Futures contracts. VXX declined by 4%.

ProShares Short VIX Short-Term Futures (SVXY) to track the S&P 500 VIX Short Term Futures Index’s inverse daily performance. SVXY advanced 1.9%.

ProShares UltraShort Term VIX Futures: (UVXY) UVXY gives 1.5X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVX declined by 5.8%.

Financial Markets Review TUESDAY, FEBRUARY 16th

Last week the equities markets drifted higher to set a new all-time high. The caveat for investors is that signs of underlying weakness remain in the market and could be setting the indices up for a fall. Although the bulk of S&P 500 companies beat their consensus estimates the market was expecting much better, which is not a good thing for equity prices. In addition to earnings prospects dimming, the weather also indicates a decline in economic activity. Although the bulk of the information is in the positive territory, none suggests an acceleration in economic activity.

This week is going to be different. Although the earnings cycle is fast coming to an end, the economic calendar is full. A few reports worth to pay attention to include retail sales, the Producer Price Index, Industrial Production, Business Inventories, and Housing starts. The surprises may be the Industrial Production and Business inventories. Demand generated by the pandemic and a rebounding economy has inventories shrinking and output increasing.

Weekly Market Review

While the equity market continued to drift sideways near a high set a few weeks ago, traders need to concentrate on the cues for the next market move that will lead to a breakout. The Nasdaq Composite and Standard & Poor’s 500 Index saw gains versus the Dow Jones Industrial Average. Investors are hopeful further stimulus measures from the Fed will boost the economy. At the same time, on the other, the risks of COVID continue to weigh on the economy.
In our view, what is likely to happen is that the latest round of stimulus measures will be passed into law by the middle of March and include another check for most American consumers. One of the final sticking points to be decided is who, exactly, will get another tab. This bill also increases the minimum wage and the unemployment benefits, which include a one-year extension.

After a decade-U.S. companies sell more shares than they are buying back.

For the first time in more than a decade! The U.S. Listed companies are selling more shares than they are buying back.

According to the Wall Street Journal, since the financial crisis in 2008, the bull market in the United States has been largely attributed to large-scale repurchases of listed companies. For every dollar of stock that was issued, bought back for $3. The repurchase amount decreased for the first time this year.

Active share repurchase by listed companies can boost stock market confidence one the one hand. On the other hand, it also reduces the number of shares outstanding in the market, which contributes to an increase in earnings per share year by year, even when incomes have not changed much.