STATE OF THE MARKETS

Stocks on bids as Powell testifies. US stocks rebounded on Wednesday after Fed’s Chief Powell testified that the rate hike in March might not be as high as what markets had anticipated. Dow (+1.79%), S&P (+1.86%) and Nasdaq (+1.62%), including Russell (+2.51%) all climbed higher as Dollar spiked close to the 97.85 mark before settling lower around 97.35. Bonds were disposed of with the 10Y yields climbing back to 185 basis points.

In the commodities market, crude continues its upward trajectory past $110/bl as Russia-Ukraine conflict continues and reduction in EIA inventories report is only helping price rise further. Gold pulled back to $1,928.30/oz on profit taking while iron ore stalled at $143.50/tn.

In the FX space, the Comdoll trios commanded demand across all horizons as investors expected higher commodity prices as Russia-Ukraine conflict prolonged. Overall sentiments seemed to improve as the safe-haven Yen and Swiss retreated to offers.

On Thursday, markets look for earnings reports from Broadcom (AVGO), Costco (COST), TD Bank (TD), Canadian Natural Resources (CNQ), Marvell Tech (MRVL) and Kroger (KR) as well as the latest US jobless claims, productivity and costs figures to assess the health of the US economy.

OUR PICK – No New Pick

No new pick as we had three losses in a row. Losses are part of the game and we have to know when to stop. Given higher than usual volatility, maybe it’s a good time to stay on the sideline until after NFP Friday.

For high probability picks, please use our Trading Central services.

Risk Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities/oz. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.