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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.03% 🇯🇵JPY: 0.64% 🇨🇭CHF: 0.51% 🇪🇺EUR: 0.37% 🇦🇺AUD: 0.36% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/N0OkEZmYKA
  • $USDJPY has fallen to its lowest point in over a month today amidst continued weakness from the US Dollar, breaking through support at the 108.50 level to hit an intraday low around 108.00 $USD $JPY https://t.co/lirGaySJpx
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 0.19% FTSE 100: -0.35% Wall Street: -0.39% Germany 30: -0.45% US 500: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qJAcXrop9l
  • EURGBP - that's a very heavy-looking candle being made today...back below 0.8600 and more? #eurgbp #sterling @DailyFX https://t.co/BKXijUZEew
  • Dogecoin ($DOGEUSD) has all but recovered from the Saturday tumble, but Bitcoin and others are struggling to get back their lift https://t.co/Ndfrmrx2Gg
  • $EURGBP has been headed lower since hitting a one month high near 0.8720 last week. The pair met resistance around the 0.8670 level while attempting to rebound today and dropped further, now trading at a twelve day low around the 0.8610 level. $EUR $GBP https://t.co/YBfI3pUcHy
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.16% Gold: -0.18% Silver: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FWbwDp2umt
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/sU4i2GAyH0
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.57% Gold: -0.29% Silver: -0.68% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WVyGzaPwLC
  • US 10yr Treasury yields have moved higher today. After falling to a one month low around the 1.53% level last week, yields are currently trading back above the 1.60% level. $USD https://t.co/kgwd6PfepQ
Stock Market Forecast for the Week Ahead: Growth to Value Rotation Heats Up

Stock Market Forecast for the Week Ahead: Growth to Value Rotation Heats Up

Peter Hanks, Strategist

Stock Market Outlook:

Stock Market Forecast for the Week Ahead

US equity markets have had a turbulent week thus far, gyrating between record levels and considerable losses as US Treasury yields creep higher and work to shift the risk landscape. Against the backdrop of an ever-improving US economy, however, the Nasdaq 100, Dow Jones and S&P 500 may continue higher in the longer-term despite recent weakness. That being said, not all indices are created equal and the high-flying Nasdaq 100, which has dragged markets higher since March 2020, may be falling out of favor.

Nasdaq 100 Price Alongside QQQ Fund Flows

nasdaq 100 stock market etf price chart

To that end, exchange traded fund flow data reveals a series of withdrawals from the Nasdaq-tracking QQQ ETF since January 2021. In the year-to-date, QQQ has seen -$780 million leave its coffers despite a simultaneous 4.80% gain in price for the index.

Stock Sectors: The Basics You Need to Know

Dominated by stocks like Apple, Microsoft, Amazon, Google and Tesla, the Nasdaq 100 has long been the leader in speculative risk appetite, leaving it especially vulnerable as investors look to reposition their portfolios amid rising risk-free rates. As a result, the stocks that have captivated the market’s attention for months appear to be some of the most vulnerable in the current climate and traders have voiced concern by withdrawing exposure from QQQ.

Traders Flock to Stocks With More Reasonable Value

On the other hand, beleaguered sectors like energy have had a remarkable start to the year as stocks like Exxon Mobil (XOM) handily outperform new-age high flyers like Tesla (TSLA) in the year-to-date. Elevated economic forecasts have opened the door to higher crude oil prices which has helped propel the XLE energy ETF higher as investors expect improved earnings from many of the previously downtrodden stocks in the sector. Further still, the energy sector was one of the largest losers at the onset of the covid pandemic and many investors may have shied away from exposure as a result.

Investors Pile into Energy-Tracking XLE ETF

xle energy etf price chart

Now that crude has recovered and investors begin to cut exposure to stocks with lofty valuations as Treasury yields tick higher, the energy sector has been a big beneficiary. In the year-to-date, the XLE fund has recorded $2.6 billion in net inflows amidst a 32.50% gain in price during the same period. While energy is just one sector that has outperformed the Nasdaq 100, it is indicative of the gradual uptick in demand for value stocks.

Equities Forecast
Equities Forecast
Recommended by Peter Hanks
Get Your Free Equities Forecast
Get My Guide

Suffice it to say, price action and fund flow data suggest traders have been engaged in the sectoral rotation for months, a theme highlighted clearly by the recent breakdown in the Nasdaq 100 to Dow Jones ratio.

Nasdaq 100 to Dow Jones Ratio Posts Abrupt Downturn

nasdaq 100 and dow jones price chart ratio

Chart created in TradingView. Ratio used as a proxy for growth to value stocks

In addition to the abrupt downturn in the Nasdaq to Dow Jones ratio, the recent technical breakdown in the Nasdaq 100 might hint the trend will continue in the days ahead. Either way, technology stocks may continue to face pressure as Treasury yields rise and money managers consider the tradeoffs of tech exposure as risk-free rates climb. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Peter Hanks
Get Your Free Top Trading Opportunities Forecast
Get My Guide

--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