Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
Huge apetite for risk across all assets
2020-12-17 • Updated
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading above the cloud. Further bullish pressure will lead the currency pair to retest the previous highs.
XAG/USD: Silver is flying higher and breaking out all resistance areas.
European Market View
The Fed kept rates unchanged, enhanced guidance and refrained from extending the weighted average maturity of purchases. Looking ahead, highlights from macroeconomic calendar include BoE, SNB, Eurozone CPI (final), US building permits, housing starts, IJC, Philadelphia Fed, Japanese CPI, NZ trade, ECB's Schnabel, de Guindos speeches. Stocks scaled record heights, the dollar plumbed two-year lows and oil prices hit their strongest since March on Thursday, as monetary support and the hope of fiscal stimulus in the United States put traders in a festive mood. U.S. lawmakers edged closer to agreement on a $900 billion virus-relief spending package on Wednesday with top Democrats and Republicans sounding more positive than they have in months about getting something done.
The proposal is expected to include $600-$700 stimulus checks and extended unemployment benefits and cannot come soon enough as U.S. COVID-19 infections soar to record levels.
EU Key Point
- Dollar trails behind to kick start the session
- Tokyo reports 822 new coronavirus cases in the latest update today
- Germany reports 26,923 new coronavirus cases in the latest update today
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...
Bearish Scenario: Selling below 22.65 with TP1: 22.34 (intraday) and TP2: 22.02 (swing). Bullish Scenario: Buying above 22.70 with TP1: 22.90.
Intraday and swing scenarios based on price action and volume profile.