✅ 𝗚𝗔𝗦 𝗪𝗲𝗲𝗸𝗹𝘆 𝟭𝟮𝘁𝗵-𝟭𝟲𝘁𝗵 𝗔𝗽𝗿 𝟮𝟬𝟮𝟭 ✅

𝗧𝗵𝗲 𝗲𝗾𝘂𝗶𝘁𝘆 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝗻𝘁𝗲𝗿𝗲𝗱 𝘁𝗵𝗲 𝟭𝗤𝟮𝟭 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝘀𝗲𝗮𝘀𝗼𝗻. 𝗦𝗼 𝗳𝗮𝗿 𝗺𝗮𝗷𝗼𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘀𝘂𝗿𝗽𝗿𝗶𝘀𝗲𝗱 𝘁𝗼 𝘁𝗵𝗲 𝘂𝗽𝘀𝗶𝗱𝗲, 𝘄𝗵𝗶𝗰𝗵 𝗰𝗹𝗲𝗮𝗿𝗹𝘆 𝗽𝘂𝘁𝘀 𝗮 𝗯𝗶𝗱 𝘁𝗼 𝘁𝗵𝗲 𝗶𝗻𝗱𝗶𝗰𝗲𝘀. 𝗥𝗮𝘁𝗲𝘀 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘇𝗲𝗱 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝗿 𝗹𝗲𝘃𝗲𝗹 𝗼𝗳 𝗿𝗶𝘀𝗸-𝗳𝗿𝗲𝗲 𝗿𝗮𝘁𝗲 𝗶𝘀 𝗻𝗼𝘄 𝗺𝗼𝘀𝘁𝗹𝘆 𝗽𝗿𝗶𝗰𝗲𝗱 𝗶𝗻.

Also the major asset classes correlations are slowly coming back to normality, after the turmoil caused by end Fed/March yield rally. I have written about it here: etoro.tw/3x4sCg9 . I am of a view that as long as we do not see a SUDDEN further rise in the risk-free rate, the current level of yields is priced in and should not cause much more volatility for stocks. Still, the issue needs to be watched closely. Historically the rise in yields, has never (especially at such an early stage of the economic cycle) cause amajor bear market. Corrections – yes, bear markets – no. Strategy? buy the dips and be exposed to equities! 🙂

𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸

👉 On Monday ” $TSLA (Tesla Motors, Inc.) jumped 3.7% after Canaccord Genuity upgraded the stock to “buy” and boosted its price target to $1,071. Meanwhile, software company $NUAN (Nuance Communications) ended the day up nearly 16% on news that Microsoft would acquire it in a $16 billion deal” (CNBC)
👉 Volatility is generally way under control with the VIX Index trading below 20 most of the week.
👉 On Tuesday the March consumer price index showed a rise of 0.6% from the previous month and 2.6% from a year ago, according to the Department of Labor. Although the number was above the expectations slightly, the market did not take it as number high enough to cause a sell-off like we sawyet a few weeks ago. $SPX500 closed at a recors, Nasdaq outperformed and ended up 1%.
👉 On Wednesday the major stories were Goldman Sachs ( reported 1Q21per-share earnings of $18.60, compared to the $10.22 estimate from analysts surveyed by Refinitivan increase of 498% from a year ago) and Coinbase (which debuted on Nasdaq as the 1st crypto-company; traded USD328-429 vs. a ref. px. of USD250). $DJ30 outperformed thans to the former one and rest of the indices experienced a slight retreat.
👉 Stocks again rallied on Thursday, with Big Tech leading, as the Retail Sales boomed 9.8% higher in March, beating expectations. Also another wave of good numbers form the companies followed suit.
👉 Positive mood continued into Friday. Indices added slightly, edning around weekly highs.
👉 Procter and Gamble, Coca-Cola and Kimberly Clark report next week, as do Intel, IBM, Netflix, Verizon, AT&T and Honeywell, so get ready for a lot of headlines again.
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 +1,4%, $NSDQ100 +1,1%, EuroStoxx600 +1,2%, GER30 +1,5%, JPN225 -0,3%.

𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:

👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) at 157bps, the German curve (10Y Bunds-3M) at 36 bps. EuroArea AAA-rated bonds yield at 30bps. High Yield Spreads at 3,2.
👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): GOLD +1,9%
👉 𝙊𝙞𝙡: +6,3% on week.
👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) -0,7% on week, EURUSD +0,7%.

Best, GlobalAlphaS

Disclaimers: None of the ideas, views and thoughts presented here shall ever be taken as a recommendation to buy or sell stocks,bonds,FX,commodities or any other financial instruments as stated in REGULATION (EU) No 596/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC or the Polish Act of 10 February 2017 amending the act on trading in financial instruments and some other acts. The article is for educational reasons and purely presents private views of the author, thus the author shall not be held accountable for any losses of a third party resulting from any potential trading activities in any instruments, both specifically or by category of assets. The author uses his best knowledge and data from sources believed to be reliable, but makes no representations as to the accuracy of the data.Full Disclaimers&Liability Limitations page.