Daily thread to exchange ideas and to share your thoughts
It is a quieter start to the day with little change seen across major currencies after the struggle seen in US equities yesterday. Futures are trading closer to flat levels currently, so that doesn’t leave us much to work with ahead of European trading.
Asian stocks are softer on the back of the more sour mood yesterday, after the Nasdaq i.e. tech was the one to lead losses instead to start the week.
A thing to note about the money piling into tech stocks is that it creates a sense of vulnerability that the extension has gone too far. There’s still the likelihood we could see more choppy trading like last week i.e. one day up, one day down.
But amid a potential overstretch, I would argue that a sharper pullback or a squeeze lower isn’t quite out of the picture at this stage.
Not to mention now that we’re getting into earnings season. Financials will be ones to watch this week but on Thursday we’ll also get Netflix and Johnson & Johnson reporting.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.