fbpx
margin call

Forex News June 25, 2022

S&P 500

Last week was the worst for US stocks since March 2020, but all of those losses were erased this week.

As last week’s big drop is erased, the S&P 500 closes at all-time highs.

Excellent stock market recovery

On the day, the S&P 500 gained 3.0 percent, the Nasdaq gained 3.2 percent, the Russell 2000 gained 3.0 percent, and the DJIA gained 2.6 percent.

S&P 500 -6.4 percent, Nasdaq -7.5 percent & DJIA -5.4 percent

Oil

  • WTI crude oil rose $3.35 to settle at $107.62, while Brent finished the week at $113.12.
  • Both are lower than last Friday’s close, marking the second week in a row of declines but ending a streak of seven consecutive weekly gains.
  • Overall, crude has been trading in the middle of the range since the outbreak of the Ukraine war, which should encourage bulls given the recession fears, OPEC+ increase, and SPR release.
  • OPEC+ will meet again on Thursday, but a report this week citing five sources indicated that the status quo would be maintained.
  • Nigeria has been underproducing but has stated that it hopes to have its oil online soon.
  • Libyan production is erratic.
  • Today’s buying interest indicates continued tightness in the physical market, but a sharp economic slowdown could reverse that in the coming months.

Crypto

  • A pattern of bitcoin volatility explosions followed by nothing
  • The market is currently trading sideways.
  • In general, volatility breeds volatility in markets.
  • Recently, however, there has been a period of huge moves followed by periods of relative dormancy in bitcoin.
  • The range has been $19,586 to $21,696 for the entire week.  
  • That 9.7 percent range is wide for a normal asset, but it is negligible in comparison to the recent BTC norm.
  • It’s difficult to comprehend, and what makes it even more perplexing is that something similar occurred in April and May.
  • There’s a natural stabilisation mechanism at work here, or it’s just a strange coincidence.
  • In any case, the trade here is to wait for a clear break of the range and then follow it. On the downside, that’s a little difficult to do because of the quick spike low on the 3AC liquidation.

#edgeforex #forex #forextrading #forexsignals #oil #equity # stocks #nasdaq #gains #crypto #volatility #downside #range #comparison

LinkedIn
Share
Telegram
WhatsApp