April 15, 2021 12:46:55
Headlines
* US retail sales surge / splurge! (9.8% v 5.9% expected)
* Stocks hovering around the highs, awaiting next catalyst
* USD trying to break 3-day losing streak
* More bank earnings, more blowout numbers
US equity futures are signalling another positive day but traders seem to be awaiting new incentives to go long as all the good news is currently priced in. The Nasdaq is pointing to a better day than yesterday with the tech titans due to rise between 0.5% and 1%.
USD is desperately trying to claw back some of its losses but the trend from the end of last month is for lower prices. The commod-dollars (AUD,NZD and CAD) lead the way and even the better data today, including a big reduction in jobless claims isn’t lifting the greenback.
Market Thoughts – coming-of-age moment?
Coinbase, the newly-listed currency exchange, is rebounding after losses from its first day of trading, after at one point being valued at over $110 billion. The high-profile debut on the Nasdaq is being heralded as another turning point in both main street and Wall street acceptance of s as an asset class, after companies such as Tesla and Square purchased bitcoin. The inherent volatility remains a cause of concern for fund managers which also means volumes on Coinbase may fluctuate. Without these growing, questions will remain over the longevity of exchanges.
Trade of the Day – Oil breaking higher
Brent crude had been consolidating in a very tight range over the past few sessions which normally heralds a breakout in line with the dominant long-term trend. News flow yesterday of increasing demand and inventory decline was enough to propel the commodity more than 4.5% higher. More solid demand numbers should keep bullish momentum going, even as numerous countries battle with rising infections.
Prices had been trading around the 50-day moving average but the breakout from compression should see the bulls targeting the recent highs at $71.36. Any setbacks will push prices back to the recent sideways range with initial support at $61.28 and then the pivot level around $60.23 for stop levels.
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