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Tech punished; Nasdaq drops 2.5% | Daily Articles | GKFX Prime


•    Nasdaq index slides -2.5% while industrials lift the Dow
•    Tech stocks continue to struggle amid higher bond yields and rotation into cyclicals
•    Wild ride for Bitcoin which slumps to $47,000 then bumps back to $55,000
•    Oil traders buy the dip sending oil soaring over 4% after Goldman forecast
•    Gold continues to bounce of multi-month lows, silver highest since Reddit squeeze
•    Euro supported by upswing in German IFO data
•    USD/CAD dips below January low, Loonie highest since 2018
•    Tesla sees biggest drop since September amid Bitcoin crash
•    Democrats aim to pass Biden’s Covid relief bill this week
•    US COVID-19 deaths reach half million
•    DAY AHEAD: UK unemployment, Eurozone CPI, Powell testimony


“I made my first investment at age eleven. I was wasting my life until then.” - Warren Buffet



*Daily closing price
↗ EUR/USD    1.2157        (+0.26%)
↗ GBP/USD    1.4062        (+0.26%)
↘ USD/JPY    105.07        (-0.43%)
↘ S&P 500    3876.50    (-0.77%)
↘ Hang Seng    30,319.83    (-1.06%)
↗ Gold        1809.70    (+1.47%)
↗ Oil (Brent)    64.90        (+4.44%)
↘ Bitcoin    54,726.2    (-4.62%)




Tech stocks were getting hit hard at the start of the new week, sending the tech-heavy Nasdaq down 2.5%. This contrasted sharply with the Dow which was up on the day thanks to its more reflation-friendly industrial makeup.

For the moment tech stocks are inversely correlated with US Treasury yields. Today the US 10-year yield reached 1.38%. The higher the yield, the higher cyclicals stocks go and the lower tech stocks go.

A new bullish forecast of $72 per barrel on US oil from Goldman Sachs sent oil prices buzzing higher by 4%. The oil market had pulled back for two days and traders happily bought the dip in what has been a strong uptrend.

Bitcoin slumped around $10,000 early Monday after Elon Musk tweeted: “BTC & ETH do seem high lol”. Musk’s outspoken support for crypto has been one of the major drivers of the latest leg-up. Disparaging comments later on from Treasury Secretary Yellen appeared to support a rebound of $8,000.

What was bad for Bitcoin seemed to be good for gold. The next driver for gold, the dollar and possibly BTC will be Congressional testimony from Fed Chair Powell today.



*Times in GMT
07:00 – UK ILO Unemployment Rate (3M)(Dec) [5.1 % Exp vs. 5 % Prev]
10:00 – Eurozone Consumer Price Index (YoY)(Jan) [0.9 % Exp vs. 0.9 % Prev]
10:00 – Eurozone Consumer Price Index - Core (YoY)(Jan) [1.4 % Exp vs. 1.4 % Prev]
15:00 - Fed's Chair Powell testifies 
17:30 - BoC's Governor Macklem speech


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