Weekly Analysis
While VIX is still trading below the market risk level, he recent rate cut from RBA and the decision from BOJ have no doubt caused a shift in the market risk appetite. We are currently taking a more neutral stand on the market risk environment.
In the equities market, almost all markets are still in the uptrend except for Nikkei, which dipped significantly due to the recent decision by BOJ. Other than the SnP500, which is currently testing the previous supply zone, there are still more upside potential on the DAX and HSI. Overall, we are still bullish in the equities market.
Similarly in the commodities market, we are still seeing an uptrend. Gold and silver made new highs in 2016, with gold breaking its previous supply zone. For silver, a decent retracement back to the 16.00/40 price level might present a good opportunity to go long. For oil, as long as 41.90 level is respected, price still have the potential to retest the previous supply zone around the 51.00 region.
The Dollar Index continue to slide, breaking the previous demand zone. Our bias on the US dollar remains bearish. Even with the recent hawkish tone from the FED, the fundamentals and economic data from the US are still very weak. Until we see clearer sign of an improvement in the US economy, there is no reason to buy the dollar.
For full market analysis, refer to blog post HERE.
While VIX is still trading below the market risk level, he recent rate cut from RBA and the decision from BOJ have no doubt caused a shift in the market risk appetite. We are currently taking a more neutral stand on the market risk environment.
In the equities market, almost all markets are still in the uptrend except for Nikkei, which dipped significantly due to the recent decision by BOJ. Other than the SnP500, which is currently testing the previous supply zone, there are still more upside potential on the DAX and HSI. Overall, we are still bullish in the equities market.
Similarly in the commodities market, we are still seeing an uptrend. Gold and silver made new highs in 2016, with gold breaking its previous supply zone. For silver, a decent retracement back to the 16.00/40 price level might present a good opportunity to go long. For oil, as long as 41.90 level is respected, price still have the potential to retest the previous supply zone around the 51.00 region.
The Dollar Index continue to slide, breaking the previous demand zone. Our bias on the US dollar remains bearish. Even with the recent hawkish tone from the FED, the fundamentals and economic data from the US are still very weak. Until we see clearer sign of an improvement in the US economy, there is no reason to buy the dollar.
For full market analysis, refer to blog post HERE.