European equities seem to be in a quite and cautious mood
today after yesterday's red day. US futures are up a what gives additional
comfort to the market is also the calm in FX. Bonds are getting slightly sold
but yields are not moving very high.
It is an interesting situation when stocks got sold off
heavily over the last two weeks but bonds and FX were not significantly
impacted. In other words, there was no direct rotation out of stocks to bonds,
what may be seen as a profit taking in stocks only as bonds barely moved.
Bond yields remain elevated but not spiking or moving
rapidly higher. JPY is a proxy of safe heaven flows is offered today but seeing
a bit of unrest in EM space. Let's see what will come up with US open and where
we close tonight.
At he moment, despite lots of cautious about another wave of
algos and systematic investors selling to adjust to their portfolios based on
risk/volatility inputs we see currently S&P 500 around 2600/10 level and
DAX around 12 100/200 as good points to re-enter the market to benefit from FOMO
flows that may eventually start even today.
But bear in mind to manage your risk appropriately also in
the light of upcoming weekend, especially if we do not see the US stocks moving
higher on FOMO flows. If that happens, we can also get ready for another Monday
risk off sentiment behaviour as there is still lots of moving sitting in
selling volatility related products.
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where
despite this disclaimer someone would consider this material as an investment
advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom
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