News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/OiRiBVeuzL
  • Crude Oil Prices Aiming Higher on OPEC Surprise, Inflation Expectations - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/03/06/Crude-Oil-Prices-Aiming-Higher-on-OPEC-Surprise-Inflation-Expectations.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CL #Crudeoil #OOTT #OPEC https://t.co/AKvXWX9DLQ
  • Given the size of the rally in the eleven months preceding the beginning of the current decline a broader sell-off looks warranted. Get your market update from @PaulRobinsonFX here: https://t.co/UxZiSulpwB https://t.co/raXvlzkGbV
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/lp0tmKS9WR
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/3bOSIBeID9
  • Rising yields and US Dollar creates a weak environment for gold, which trades at a 9-month low. Get your market update from @JMcQueenFX here: https://t.co/lh6Qb2qxin https://t.co/MRAYe57e1A
  • RT @FxWestwater: US Dollar Fundamental Forecast: US Dollar Eyes Inflation Data After NFP Boost Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2021/03/06/US-Dollar-Fundamental-Forecast-US-Dollar-Eyes-Inflation-Data-after-NFP-Boost.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $DXY https://…
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/NvEAeWkBP1
  • The British Pound continues to face downside pressure as corrective trades continue. Get your market update from @HathornSabin here: https://t.co/YCctQSt2vB https://t.co/naVcnmf9UT
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/vABKiG4WNe
Dow Jones Charges Above 30,000, What Can Stop the Rally?

Dow Jones Charges Above 30,000, What Can Stop the Rally?

Peter Hanks, Strategist

Dow Jones Price Outlook:

Dow Jones Charges Above 30,000, What Can Stop the Rally?

The Dow Jones charged into record territory in Tuesday trading, passing the 30,000 mark for the first time in its history. Surging nearly 12,000 points over the last 8 months, the Dow Jones has put in an incredible recovery that has only picked up pace in November as covid vaccine hopes bolster demand for some of the most beleaguered sectors in the coronavirus era. Recent political clarity and the appointment of Janet Yellen as Treasury Secretary under the Biden administration have only added to the overwhelmingly bullish mood in the market.

Advertisement

That being said it is important to keep in mind - particularly in times like these with the Dow posting a 13% return in a single month - that the market can in fact fall. While sentiment is understandably upbeat and seasonality might be an added tailwind, there are concerns on the horizon. At the forefront of these worries may be the lack of stimulus.

Dow Jones Price Chart: Daily Time Frame (January 2020 – November 2020)

dow jones price chart

The conversation around stimulus has shifted from “if” to “when and how much,” in recent weeks but the fact remains that stimulus is nowhere to be found. While it does seem likely that further assistance will be offered, there is no guarantee the aid will arrive immediately after Joe Biden takes office. Further still, 12 million unemployment benefits are set to expire on December 26 and the housing moratorium shortly thereafter on December 31.

Stock Market Holiday Calendar 2020/21: Global Shares Market

Combined with a possible end to the Fed’s lending facilities, there could be a wave of negative developments set to strike the market all at once during a period of the year that may see reduced liquidity due to the holiday conditions. These unique circumstances and waning tailwinds, could combine to move the sentiment needle in a meaningful way and work to erode the Dow Jones, Nasdaq 100 and S&P 500.

Wall Street MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -7% 1% -3%
Weekly -2% -3% -3%
What does it mean for price action?
Get My Guide

On the other hand, it is difficult to argue against fresh all-time highs so calling a top at this stage seems rather presumptuous. Furthermore, the broader foundation beneath the equity market remains very accommodative so a potential pullback might be mere consolidation, a healthy development after stocks have surged to the degree that they have this month.

Using Sentiment Analysis to Examine Stocks

Either way, it is too early to argue the Dow’s end is near, but it is important to keep these events in mind as they could deal a significant blow to sentiment. Since negative news is present, but the focus has been on previously outlined positive developments, it seems sentiment itself has been one of the few drivers behind these gains in recent weeks - in my opinion. In the meantime, follow @PeterHanksFXon Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES