Netflix stock drops 20% after earnings

“Compound interest is the eighth wonder of the world. He who understands it earns it… he who doesn’t pays it.” – Albert Einstein

 

 

 

HEADLINES

 

 

 

• Dollar dips with U.S. Treasury yields but still up for week
• U.S. dollar net long bets slide to lowest since mid-Sept 2021 -CFTC, Reuters data
• Bitcoin falls 9.3% to $36,955
• Oil slides on Friday, but climbs for 5th week on supply concerns
• Gold set for second weekly gain as inflation risks boost appeal
• S&P 500 drops below 200DMA for first time since June 2020
• Commodity prices to rally on raising tensions over Ukraine or tough sanctions against Russia – ING

 

 

 

FOREX

 

 

 

Dollar dips with U.S. Treasury yields but still up for week

 

The dollar declined on Friday, along with U.S. Treasury yields, while investors looked ahead to next week's Federal Reserve meeting for more clarity on the outlook for rate hikes.

Expectations that the Fed will tighten monetary policy at a faster pace than previously anticipated had driven a rise in yields and the dollar earlier this week, and the U.S. dollar index was set for the biggest weekly percentage gain since mid-December.

 

U.S. dollar net long bets slide to lowest since mid-Sept 2021 -CFTC, Reuters data

 

Speculators' net long positioning on the U.S. dollar dropped in the latest week to its lowest level since mid-September 2021, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

 

Bitcoin falls 9.3% to $36,955

 

Bitcoin dropped 9.28% to $36,955.03 at 22:02 GMT on Friday, losing $3,781.02 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is up 2.4% from the year's low of $36,146.42. Ether , the coin linked to the ethereum blockchain network, dropped 12.27% to $2,631.35 on Friday, losing $368.18 from its previous close.

 

 

 

COMMODITIES

 

 

Oil slides on Friday, but climbs for 5th week on supply concerns

 

Oil prices slid for a second day in a row on Friday, pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the benchmarks touched seven-year highs earlier in the week. However, both crude benchmarks rose for a fifth week in a row, gaining around 2% this week. Prices were up more than 10% so far this year on concerns over tightening supplies.

 

Gold set for second weekly gain as inflation risks boost appeal

 

Gold was set to gain for a second week as inflation and geopolitical risks lifted its safe-haven appeal but it slipped on Friday amid a broader decline in commodities, while palladium was on course for its best week since November 2020.

 

 

 

STOCKS

 

 

 

S&P 500 drops below 200DMA for first time since June 2020

 

US equity markets continued to sell off on Friday, as downbeat earnings from tech giant Netflix weighed on sentiment and its competitors. NFLX shares dropped over 20% on Friday after the company on Thursday issued significantly worse than expected guidance for subscriber growth in Q1 2022. That weighed on other high earnings/value ratio stocks (or so-called “growth” stocks) which are concentrated in the tech sector, though also weighed on the market more broadly as well. The S&P 500 dropped 1.5% towards 4400.

 

 

 

ANALYSIS

 

 

 

Commodity prices to rally on raising tensions over Ukraine or tough sanctions against Russia – ING

 

“In a scenario where the West reacts strongly with sanctions that target key Russian industries, this could have a far-reaching impact on the commodities complex. It could potentially lead to a significant tightening in energy, metal, and agri markets, which would provide only a further boost to an asset class which already has an abundance of positive sentiment in it.”

 

 

 

CHART

 

 

 

Bitcoin – Daily Candlesticks

Source: GKFX Prime Metatrader 4

BTC/USD broke down through major support at 40,000, which should now act as resistance. Next major support is the May 2021 low around 28,500. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/commodity-prices-to-rally-on-raising-tensions-over-ukraine-or-tough-sanctions-against-russia-ing-202201211451
https://www.fxstreet.com/news/sp-500-drops-below-200dma-for-first-time-since-june-2020-nearing-4400-as-investors-spooked-by-poor-netflix-guidance-202201212027
https://www.reuters.com/technology/bitcoin-falls-93-36955-2022-01-21/
https://www.reuters.com/business/safe-haven-yen-gains-against-aussie-risk-sentiment-sours-2022-01-21/
https://www.investing.com/news/commodities-news/oil-falls-as-us-inventory-build-prompts-profittaking-2744467
https://www.reuters.com/markets/europe/gold-steadies-heads-second-straight-weekly-gain-2022-01-21/