Daily Market Report: Dow, Nasdaq, & DAX

Equities retrace as trade worries and dismal housing data dent investor appetite.

Dow Source: Bloomberg

WALL STREET: Earnings better than expected but trade woes and (some) data still a concern

Bank of America’s results were better than expected, though warned that profits could get hit if the Fed reduces rates, which at this stage money markets are pricing in two for the year and a majority pricing in three by the end of 2019. Morgan Stanley is up next, but it’s the overall trade environment and yesterday’s worse than expected housing data that remains a concern. The retracement has been good for retail traders who are holding extreme short bias in the index, and it’s dropped 2% as fresh shorts close out as its bull trend technical overview stalls at the highs.

Wall Street Source: IG charts

Wall Street Source: IG charts

US TECH 100: Overall risk-off event takes shares lower, with Netflix plunging on worse than expected subscriber growth

The attention is now on Netflix which plunged more than 10% after it posted worse than expected subscriber growth that was hit by rising streaming prices, and this all prior to further streaming competition in the near future and the removal of popular programs from its service. Microsoft is up next today, and Facebook, Amazon, and Alphabet are next week. In terms of bias, there’s also been slight relief on retracement taking heavy short bias a notch lower to 70%.

US Tech Source: IG charts

US Tech Source: IG charts

GERMANY 30: Retail bias shifts closer to the middle as price drops entice short profit-taking

Equities were in retreat yesterday and with Asia down this morning, and the DAX was no exception to that rule, dropping slightly lower to finish in the red. The current positive technical bias the index is enjoying is only due to its price above all its main moving averages, and with a broken bull trend line that held only on anticipation of ECB easing. But retracement spells good news for retail traders, with profit-taking on shorts taking the bias closer to the middle.

Germany30 Source: IG charts

Germany30 Source: IG charts


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