Daily Commentary 7 January 2021

Daily Commentary 7 January 2021
by Tony Fitzpatrick


Today payrolls in the US. A big increase in those being employed is expected with the rate of unemployment expected to reach 4%

This level of unemployment is seen as a reasonable target achieved and therefore they do not need QE.

Good employment nos have been good for stocks historically but the more good the economic news, the less financial stimulus required. The market likes the easy quick hit of financial stimulus. The other way takes longer and only certain stocks will do well!!

Yesterdays action was sell rallies at the open as suggested, dips then were bought specially at the 50dma on the Nasdaq. I will wait for 1.30 this avo but having had a good week I think I will hold fire unless something obvious appears.

Rates are rising and Tech suffers in this environment. Its good for Banks /Financials.

Resistance Support Long term trend Short Term

Dax 16200 15900 UP Flat

S&P 4720 4670 Up Flat

Dow 36600 36150 Up Flat

Nasdaq 16k 15600 UP Flat

EUR/USD 1.1360 1.1260 Down Flat

USD/JPY 116 115 Up Flat

Gold 1,830 1,785 Flat Flat

https://www.investing.com/economic-calendar https://www.investing.com/earnings-calendar/

Watch your risk

Trade with stops Colin Gregan 0851 733729

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