✅ 𝗚𝗔𝗦 𝗪𝗲𝗲𝗸𝗹𝘆 𝟴𝘁𝗵-𝟭𝟮𝘁𝗵 𝗠𝗮𝗿𝗰𝗵 𝟮𝟬𝟮𝟭 ✅

𝙏𝙝𝙚 𝙚𝙦𝙪𝙞𝙩𝙞𝙚𝙨 𝙘𝙖𝙢𝙚 𝙗𝙖𝙘𝙠 𝙧𝙤𝙖𝙧𝙞𝙣𝙜 𝙝𝙞𝙜𝙝𝙚𝙧 𝙡𝙖𝙨𝙩 𝙬𝙚𝙚𝙠, 𝙖𝙨 𝙩𝙝𝙚 𝙢𝙖𝙧𝙠𝙚𝙩 𝙞𝙨 𝙣𝙤𝙬 𝙢𝙤𝙧𝙚 𝙞𝙜𝙣𝙤𝙧𝙖𝙣𝙩 𝙬𝙞𝙩𝙝 𝙝𝙞𝙜𝙝𝙚𝙧 𝙮𝙞𝙚𝙡𝙙𝙨 𝙖𝙣𝙙 𝙨𝙚𝙚𝙢𝙨 𝙩𝙤 𝙗𝙚 𝙩𝙖𝙠𝙞𝙣𝙜 𝙞𝙩 𝙖𝙨 𝙖 𝙣𝙚𝙬 𝙣𝙤𝙧𝙢𝙖𝙡 𝙙𝙪𝙚 𝙩𝙤 𝙝𝙞𝙜𝙝𝙚𝙧 𝙜𝙧𝙤𝙬𝙩𝙝 𝙥𝙧𝙤𝙨𝙥𝙚𝙘𝙩𝙨. 𝙃𝙞-𝙏𝙚𝙘𝙝 𝙨𝙩𝙤𝙘𝙠𝙨 𝙨𝙩𝙞𝙡𝙡 𝙪𝙣𝙙𝙚𝙧𝙥𝙚𝙧𝙛𝙤𝙧𝙢.

The $SPX500 and the $DJ30 managed even to make new all-time highs with the latter beeing the absolute leader. $NSDQ100 still suffered due to higher discounting yields, driving lofty new economy stocks valuations lower. In general though the volatility seems back under control and the market should slowly concentrate on the growth prospects over higher risk-free rates. It is a natural process at this stage of the economic cycle.

𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸

👉 From the very start of the week $DJ30 started making new ATHs as investors turned to the economic comback plays as a results of the Senate approval of the Covid-19 relief that was so long-awaited. Tech stocks suffered. $AAPL (Apple), $TSLA (Tesla Motors, Inc.), $GOOG (Alphabet) and $NFLX (Netflix, Inc.) all fell 4-5%.
👉 Some positive news was also heard on the pandemic front. California said it will loosen restrictions for instance.
👉 As bond yields stabilised the tech stocks jumped sharply higher on Tuesday. $NSDQ100 was up over 3,5% for its best gain since Nov 2020. Major growth darligs (i.e. $TSLA posted massive one-day gains of 10-20%) after very bad last few weeks.
👉 “What has just happened in the equity market is a massive and severe … rotation into value stocks,” Cathie Wood said Tuesday on her monthly webinar. “The bull market broadened out into value in a more serious way.” – this is a big positive for further bull story into the Recovery phase we’re due to enter soon. Wide market gains are absolutely necessary for the bull market to be long and healthy.
👉 On Wednesday the $DJ30 closed above 32 000 pts. and the Covid relief bill was finally passed by the House of Reps as well. Small caps were also strong with Russell2000 gaining 1,6%.
👉 Same day the very important USD38bn bond auction ended up with good demand, which further eased concerns about the overall demand for US treasuries these days – a very welcome thing for the equity market.
👉 Some bullish calls on sold-off stocks from banks like $UBSG.ZU (UBS Group AG) were heard too.
👉 First signs of warmer US-China relations were seen on Thursday, as the “China’s semiconductor trade association formed a new group to work with their U.S. counterparts to ease recent trade tensions between the two countries. $NVDA (NVIDIA Corporation) and $AMD (Advanced Micro Devices Inc) jumped more than 4% each, while $XLNX (Xilinx Inc) popped 6.2%.” (CNBC)
👉 Jobless Claims data came out good too and additionally supported stocks into the end of last week.
👉 On Friday the 10Y yield went back above 160bps, but the equity market now seems to be more OK with the current levels of yields. Indices mostly rose again (ex $NSDQ100 only).
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 +2,6%, $NSDQ100 +2,1%, EuroStoxx600 +3,5%, $GER30 +4,2%, $JPN225 +3%.

𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:

👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) is wider again at 160bps, the German curve (10Y Bunds-3M) at 30bps. EuroArea AAA-rated bonds yield curve at 31bps. High Yield Spreads at 3,5.
👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD +1,6%, $SILVER +2,8% on week.
👉 𝙊𝙞𝙡: -1,1% on week.
👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) -0,3% on week, $EURUSD +0,3%.

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