Reddit traders target Tilray

TAKEAWAYS

•    Tilray stock jumps 50% as next target after GameStop for Reddit message boards
•    Tesla stock has its worst day in a month after Bitcoin purchase
•    US dollar stabilises after 4-day losing streak 
•    GBP/USD extends breakout with move over 1.385
•    Bitcoin slides 5% from recent peak in profit-taking move before $50k
•    Wall Street & European stocks close mixed as UK, Greece introduce tighter lockdowns
•    Twitter stock jumps after bettering earnings estimates, though MAU growth slides
•    Uber misses revenue expectations, bookings improved in Q4
•    Fed’s Powell says any inflation increase in coming months “isn’t going to mean very much.”
•    US January CPI reading misses estimates
•    US President Biden speaks by phone to China President Xi on Wednesday evening
•    DAY AHEAD: Chinese NY, US jobless claims, AstraZeneca earnings, Disney earnings

BEST CHART
DXY – H4 Candlesticks

 
Source: GKFX / MT4 (February 10, 2021)

DXY has fallen sharply from its recent peak near 91.5 and has steadied near a rising trendline and just above a confluence of support including the 61.8% Fibonacci retracement, prior lows and the 90.0 big round number.

GURU WISDOM

"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." – Benjamin Graham

MARKETS

*Daily closing price
↗ EUR/USD    1.2119        (+0.01%)
↗ GBP/USD    1.3831        (+0.12%)
↗ USD/JPY    104.63        (+0.05%)
↘ S&P 500    3855.36    (-0.03%)
↗ Hang Seng    30,038.72    (+1.91%)
↗ Gold        1842.59    (+0.30%)
↗ Oil (Brent)    61.12        (+0.05%)
↘ Bitcoin    44,841.0    (-3.54%)

NEWS

Tilray was a top gainer after the group of traders that pushed up GameStop set the company as their next target for a short-squeeze. Tilray has some of the highest short interest in its sector so was the natural target for the Reddit traders that had so much success squeezing GameStop. Shares in Tilray had already gotten off to a good start to the year on news of its merger with industry competitor Aphria. The sector more broadly has been rallying since the November US election on hopes that Joe Biden and now a Democratic-led Senate would initiate favourable legislation. 

Elsewhere well-received corporate earnings offset a drop in Tesla stock on the S&P 500, while shares in Hong Kong jumped nearly 2% for a fourth day of gains in the lead up to Chinese New Year. The US dollar was little changed in reaction to weak retail sales data and a speech from Fed Chair Powell, in which he talked down the prospect of rising interests in reaction to higher short-term inflation.  

DAY AHEAD 

*Times in GMT
13:30 – US Continuing Jobless Claims (Jan 29) [4.49 M Exp vs. 4.592 M Prev]
13:30 – US Initial Jobless Claims (Feb 5) [757 K Exp vs. 779 K Prev]
21:30 – New Zealand Business NZ PMI(Jan) [48.2 Exp vs 48.7 Prev]