Indices tested this morning as virus toll rises
Tech earnings mostly impress; Amazon, Visa, and Verizon up next
Dow Technical analysis, overview, strategies, and levels
The earnings focus yesterday was primarily on tech stocks, and in terms of sector performance few were in the green including industrial and materials, and where energy suffered a blow followed by real estate. McDonald’s and Microsoft’s earnings beat expectations taking the latter’s share price to all-time highs, but Boeing reported its first annual loss since 1997. In terms of the Dow’s components, Visa and Verizon will be announcing their respective earnings today, and followed by energy giants’ Chevron and ExxonMobil releasing tomorrow where both have been under heavy pressure given the plummet in energy prices as corona virus fears rise and hit the travel sector.
IG client* and CoT sentiment for Dow
* The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am
Dow chart with retail and institutional sentiment
Nasdaq Technical analysis, overview, strategies, and levels
Yesterday was a big day for earnings for tech stocks, whereby Tesla and Microsoft earnings beat expectations taking their share prices to fresh highs, in the case of the former breaching the $600 level in after hours. Facebook shares on the other hand, plummeted in after hours even after posting better than expected earnings per share and growth in revenue, with the social networking company saying growth would continue to slow. AMD (Advanced Micro Devices Inc) shares declined on weaker forecasts, even as its results beat expectations. For today’s earnings, Amazon is up next, though as always expect overall risk appetite to dictate global equities due to corona virus fears.
IG client* and CoT sentiment for Nasdaq
* The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am
Nasdaq chart with retail and institutional sentiment
DAX Technical analysis, overview, strategies, and levels
German GfK's consumer climate figure beat expectations yesterday following IFO's worse than expected figure at the start of this week. And while we’ll get more German data today, which will include employment figures as well as preliminary CPI (Consumer Price Index) figures released throughout the day, the attention globally when it comes to equities remains on risk appetite. Asia is down heavily this morning, and so long as that persists expect it to likely drag on other indices globally. In terms of its components, Deutsche Bank outperformed yesterday and ahead of its earnings release today.
IG client and CoT sentiment* for DAX
Lastly, in sentiment, retail short bias has risen by 4% to a heavy short 68%. Though with the DAX dropping this morning, should that continue and we could see range-trading shorts enticed into closing out.
* The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am
DAX chart with retail and institutional sentiment
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