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Tech stocks bounce back from rout

 

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.” - Charlie Munger 

 


MARKET NEWS

 


Nasdaq ends wild day flat after Big Tech reversal, Dow drops 470 points for worst day since February - CNBC

 


It was one of the wildest days of the year for the U.S. stock market with technology shares as the battleground. Big Tech took a big hit to start the day on concerns about rising inflation and high valuations. But in an odd twist, tech shares rebounded in the afternoon as investors went back into names like Amazon and Netflix and left the rest of the market in the red.

 


Oil Inventories Fall by 2.5M Barrels Last Week: API – Investing.com

 


U.S. crude stockpiles fell last week, strengthening investor expectations the path toward demand recovery remains on track.  West Texas Intermediate, the benchmark for U.S. crude prices, was up $0.36 a barrel to $65.31 on the news, after settling up $0.49 at $65.41 a barrel.

 


FOREX

 


Dollar hits fresh 10-week lows ahead of inflation report - Reuters

 


The U.S. dollar dropped to a fresh 2-1/2-month low on Tuesday as investors bet that rising inflation could erode the currency’s value, ahead of Wednesday’s release of closely watched consumer price data. In recent years, rising inflation expectations have helped the dollar because investors have assumed interest rates would be increased in response to higher prices. That is no longer the case.

 


AUD/USD: Wavers above 0.7800 amid cautious sentiment on US Inflation day – FX Street

 


AUD/USD wobbles around mid-0.7800s, after posting mild daily gains, as traders embrace for the key US Consumer Price Index on Wednesday. Although China’s headline inflation figures came in positive and Australia's budget also ignored the record deficit to promote economic recovery, not to forget strong US second-tier data, AUD/USD stayed lacklustre.

 


GOLD

 


Gold pulls back from a 3-month high to mark first loss in 5 sessions 
 


Gold prices marked their first loss in five sessions on Tuesday, with prices pulling back from their the highest levels since February as a rise U.S. Treasury yields dulled demand for the precious metal.

 


MORE HEADLINES

 


•    Job openings leaped above 8 million in March, a new high
•    Stanley Druckenmiller says the Fed is endangering the dollar's global reserve status
•    China’s Sinovac Shot Found Highly Effective in Real World Study
•    Hedge Funds Reloaded Their Shorts Just in Time for a Tech Payday
•    Fed’s Bullard joins chorus on central bank saying it is not time to talk taper 
•    EIA lowers 2021 world oil demand growth forecast to 5.42 million barrels per day

 

 

ANALYSIS

 


The rotation from bitcoin into ether could point to a 2017-style correction in the crypto market, research firm says
"The meteoric rise in cryptocurrencies has a whiff of deja vu," to bitcoin's move in 2017 when a months-long rally catapulted it to become the best-performing crypto asset, said Vanda Research, which tracks retail investing activity, in a note Monday. 

 


"When the rally started to look tired in November [2017], investors rotated to lesser-known altcoins like Ripple and Ethereum, which quickly became household names, too," wrote Ben Onatibia, head of markets at Vanda Research. Ripple then peaked in early January 2018 while Ethereum held to its gains until mid-to-late January of that year, he said. 

 


EUR/USD should remain well supported in the near-term – Rabobank

 


“The Fed’s policy of reacting to data rather than forecasts appears to have been justified and both the market and the Fed will be watching forthcoming US economic data extremely closely.  As it stands, Fed Chair Powell prefers to maintain a dovish position, reasoning that inflationary pressures in the coming months will be transitory and that the recovery is far from complete.  This restraint is being echoed in nominal bond yields and in the value of the USD.”

 


CHART

 


SP500 – 4-hour Candlesticks

 


  
Source: GKFX Metatrader 4 

 

SP500 is testing the bottom of a rising wedge pattern as well as the 200-period moving average on a 4-hour chart. A break below the bottom of the pattern would be bearish and could bring about a larger correction. - Prepared by Trading Writers*

 


CALENDAR


*Times in GMT
 


Source: FX Street Economic Calendar