Traders are recalibrating their portfolios | 14 January 2022

Traders are recalibrating their portfolios


#SP500:


Traders are recalibrating their portfolios to account for a more hawkish Federal Reserve, as signs that the central bank is ready to pull out the stops in its fight against inflation has shaken up markets in the first week of 2022. Yields on the benchmark 10-year U.S. Treasury are on track for their biggest weekly gain since September, 2019, while technology and growth stocks have tumbled and investors snapped up shares of banks, energy firms and other economically sensitive companies. Expectations that the Fed will raise interest rates at least three times in 2022 will cut down on speculation in the market.


Trading recommendation: Sell 4714 and take profit 4631.


Traders are recalibrating their portfolios


#WTI:


COVID-19 hospitalizations in the United States are poised to hit a new high as early, surpassing the record set in January of last year as the highly contagious Omicron variant fuels a surge in infections. Hospitalizations have increased steadily since late December as Omicron quickly overtook Delta as the dominant coronavirus variant in the United States, although experts say Omicron will likely prove less deadly than prior iterations. This is a negative signal for the oil market. Additional support for the bears will be provided by the negotiation process on Iran. Progress has been made regarding the Iran nuclear talks although time is running out, France's foreign minister said. Western diplomats have indicated they are hoping to have a breakthrough by the end of January or early February.


Trading recommendation: Sell 79.35 and take profit 77.25


Traders are recalibrating their portfolios


#Alcoa:


Aluminum prices reached their highest since Oct. 21 as the amount of metal available in London Metal Exchange warehouses fell and traders worried that high energy costs would force more smelters to cut output, worsening a supply shortage. A large aluminum smelter in Dunkirk in northern France will reduce production by a further 5% next week, a spokesperson for its owner said. Around 68 million tons of aluminum - used in packaging, transport and construction - are made each year. Output cuts in top producer China pushed the market into deficit in 2021.


Trading recommendation: buy 60.35 and take profit 63.10.

 

David Johnson
Analyst of «FreshForex» company
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