Coming three days starting
from today going to be very fickle for market as markets awaiting ISM
manufacturing, Fed meeting,BoJ meeting mins,ECB meeting and on top of
everything No-farm Payroll and one thing is clear it’s going to rattle market
either way though it’s look like great for stocks market as stocks marching
high however today is first day of May as very famous “sell in May and go away”
doesn’t look like proper to say so far.
Moreover it is
being very clear that The US equity
market has given up even the appearance of caring about economic data.
Throughout Q1, as the S&P 500 garnered an impressive 10% return, high hopes
were pinned on a 3.5% GDP print, then expectations retrenched to 3% before the
actual print of 2.5% emerged. The chart below illustrates that the
economy continues to trudge along at a 2% year over year GDP growth rate.
Not to say
that a single data point like the Dallas Fed Manufacturing index merits a
market move, but it is surprising when the 3rd worst print since the recession
is met by another push higher in Equities. Few would describe earnings
season as anything but a disappointment. In this case only any major
disappointment from any Central Bank will make difference to markets which is
most unlikely as economic data from US or Europe are not encouraging, particularly Europe as
Europe unemployment is super alarming they must do more.
Following are trade calls for today,
- Sell Eur/Usd around 1.3190 stop above 1.3230 target around 1.3130
- Sell Usd/Jpy around 97.30 stop above 97.90 target 96.65 /open
- Buy Gold around 1468 stop above 1460 target around 1493
For more info visit :www.cfb.ae
No comments:
Post a Comment