Who is the winner of rotations?

Monica Kingsley Monicakingsley

S&P 500 took time to get going on retail sales above expectations, but the true winner as called for was once again Russell 2000. Bubble emerging? There is more to the story, and the sectoral rotations just inside the S&P 500 and various subsectors (looking at you IGV, then XBI and KRE) drop their own clues.

Just as much as this yields chart followed by my commentary in our channel in preps for today‘s data rich day (and then one more sectoral pick that is just getting going – and I don‘t mean Bitcoin or its plays such as MSTR, MARA or COIN mentioned yesterday, also premium). Plenty of gains delivered to clients.

Crude Oil

The downside direction in oil is picking up slowly, yet you can see that oil stocks aren‘t selling off in sympathy. Materials are actually among the leading sectors, but energy is nowhere nearby, meaning that oil stocks (outside exploration) should come with tempered appreciation expectations – better times would come when oil turns up, but we aren‘t near this point (for now, tentative bottom searching within a still narrow WTIC range).

Author

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.