Summary:
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Stocks rise in Europe and US but Tesla falls back
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Technical overview: DE30
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Record short positioning in Gold and TNOTE
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Crypto markets in the red
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Several bank’s issue new recommendations - EURCAD, AUDJPY, AUDUSD
It’s been a fairly upbeat start to the new week for stock indices with the majority of Europe trading higher and US indices also in the green on the European close. The US500 is on track for another day of gains, which would make it 3 in a row and in taking out last week’s high the market has already made a higher high and higher low today. Price pulled back into the 8 and 21 EMAs at the start of last week but buyers defended the 2800 level once more and market is now less than 1% from it’s all-time high of 2878 set back in January.
The last two weeks were not successful for German equities. After a brief bounce in July the German DE30 quickly retraced all these gains and again revisited nearby its lows from June/July. Turkey-related concerns seem to be among prime culprits of such underperformance of the German stock market. The focus of our latest technical overview is the DE30, with a double bottom formation possible support for bulls.
The latest positioning data from the CFTC has revealed some interesting developments with an increase in the number of speculative shorts in US treasury markets and in long USD positions. Excessive speculative positioning can often be seen as a contrarian signal and as such it is not surprising that Jeffrey Gundlach, a prominent hedge fund manager, has warned that this could cause “quite a squeeze.”
There’s been a negative session so far for crypto markets with all 5 in the red at the time of writing. Ethereum is the worst performer, lower by almost 5 % on the day and falling down to trade in the mid 280s. JD.com, a Chinese e-commerce giant, is launching a new platform for institutional customers. According to the official release published on Friday, the blockchain-related platform is called JD Blockchain Open Platform, and it is aimed at helping companies build, host and use blockchain applications in operations management.
It’s been a busy day for bank recommendations with 3 posted earlier. They focused on the EURCAD, AUDJPY and AUDUSD.
