FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Stock bulls believe in Santa

28 December 2021 Written by Lukman Otunuga  Senior Research Analyst at FXTM Lukman Otunuga

The festive stock market rally appears to be playing out nicely with US equities continuing to drive higher in thin, holiday liquidity. The S&P 500 marked its fourth straight day of gains with another record high close, as the index climbed 1.38%. The tech sector led the way with the Nasdaq advancing 1.39% while the Dow pushed north with gains just shy of 1%. An ecommerce boom in retail sales underscored the evident underlying strength in the economy and eased worries from Omicron-driven flight cancellations which hit travel stocks.

Festive spirits remain high despite rising infection rates

The UK and France are seemingly looking through their record and rising cases of Covid-19 as both governments declined to ramp up more severe social restrictions as we head into the new year. With other positive Omicron news out of South Africa, markets are getting into the spirit of the Santa rally in the last few trading days of 2021. Of course, trading volumes are traditionally very much suppressed at this time of the year, so it is probably wise not to go chasing price action too much.

That said, the traditional Santa rally does traditionally kick off in the last few days of the year and the first couple of the new year. Interestingly, going back to the mid-1990s, there have been only six times Santa has failed to show in December and January was lower in five of those six times.

Yen lags in thin conditions

JPY has been the notable laggard in trading amid low volumes, as risk sentiment remains mildly positive. USD/JPY hit a one-month high yesterday as bulls eye up the recent cycle top in late November at 115.513. Previous long-term resistance also sits near here, with next levels nearer 118.  A move through the mid-115s will need the US 10-year Treasury yield to push convincingly through and above 1.5%.

Meanwhile sterling continues to build on its pre-Christmas gains. Bets on the Bank of England hiking rates four times next year has boosted GBP with traders expecting a slight overshoot to rein in inflation.

Gold inching higher

Amid the quiet trade, gold is creeping north with four straight days of gains. Prices had been trading around the 200-day simple moving average around $1800 but the recent move has pushed up making one-month highs. Strong resistance again sits at $1834 ahead of recent cycle highs above $1870.




The Pound is having tough times
The Pound is having tough times

The Pound Sterling is keeping balance against the USD as much as possible. The current quote for the instrument is 1.0800. The news released yesterday were rather puzzling. The Bank of England announced...

29 Sep 2022

EUR/USD: bears now target 0.9500
EUR/USD: bears now target 0.9500

EUR/USD drops for the seventh straight session and tests 0.9535. Below the 2022 low at 0.9535 comes the 0.9500 region. EUR/USD extends the leg lower to the proximity of 0.9530 earlier on Wednesday...

28 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back in March...

27 Sep 2022

Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.