Implications and Outlook
1. American markets were all about the data and also the improved (fake) than anticipated jobs topic of 213,000 as well as the rate increases to 4%. The net result has been a first headline sell-off, however, a retrieval in key stocks indices to close up with favorable numbers on the day.
Yet again, the top performer continues to be the NASDAQ index with plus 1.3% and also an additional out performance from the broader S&P500 having plus 0.9% outshining the plus 0.4% increase in the DJI. The bond market has shown the uncertainness with a 1 Basis Point parallel change in the curve. Nevertheless, we hear about curve flatteners currently being positioned.
We're once again watching a depletion in liquidity within the Eurozone bond market, which may very swiftly become volatile once we see a summer season headline which can very easily spook the markets. Numerous market makers are incredibly light with inventory that rumors assert much more prolonged holidays are being given. Having a lesser number of positions will rise volatility, as only normal orders will pursue prices.
2. Core DJ Industrials followed the mediocre jump which finally resulted in a rise for the Index climbing towards Mean Resistance of 24568.
3. The violation of the Mean Resistance 24568 will undoubtedly bring serious of the mid to intermediate-term bullish implications, having upside target to Key Resistance 24700 level, with low downside risk for the time being.
4. Current Index Strategy Bias: Bullish 60 / Bearish 40
1. American markets were all about the data and also the improved (fake) than anticipated jobs topic of 213,000 as well as the rate increases to 4%. The net result has been a first headline sell-off, however, a retrieval in key stocks indices to close up with favorable numbers on the day.
Yet again, the top performer continues to be the NASDAQ index with plus 1.3% and also an additional out performance from the broader S&P500 having plus 0.9% outshining the plus 0.4% increase in the DJI. The bond market has shown the uncertainness with a 1 Basis Point parallel change in the curve. Nevertheless, we hear about curve flatteners currently being positioned.
We're once again watching a depletion in liquidity within the Eurozone bond market, which may very swiftly become volatile once we see a summer season headline which can very easily spook the markets. Numerous market makers are incredibly light with inventory that rumors assert much more prolonged holidays are being given. Having a lesser number of positions will rise volatility, as only normal orders will pursue prices.
2. Core DJ Industrials followed the mediocre jump which finally resulted in a rise for the Index climbing towards Mean Resistance of 24568.
3. The violation of the Mean Resistance 24568 will undoubtedly bring serious of the mid to intermediate-term bullish implications, having upside target to Key Resistance 24700 level, with low downside risk for the time being.
4. Current Index Strategy Bias: Bullish 60 / Bearish 40