Weekly Market Update for this coming week 01th Feb 2021 – 05 Feb 2021.

Weekly Market Update – Big Tech Earning Continue with Gamestop Saga!
Video:

The Dow closed lower Friday, suffering its worst weekly decline since October after a jolt of volatility swept through markets as the short-squeeze trade resumed even as trading platforms hampered retail traders
All three major averages dropped more than 3% this week which is the biggest weekly fall since the end of October.

The Dow Jones Industrial Average fell 2.03%, or 620 points, but was down more than 700 points intraday. The S&P 500 was down 1.93%, while the Nasdaq Composite fell 2%.

Market is getting unhealthy with Gamestop Saga. Retailers speculated stocks market with Saudi Arabia Casino mindset.
Last week earnings written report isn’t bad but market was dragged by Reddit stocks (GME, AME, NOK, BB etc)

Market participants have speculated that volatility caused by the short squeezes have led to investor favorites including Apple Inc coming under pressure level as hedge funds sell to cover billions of dollars in losses.
One potential catalyst for further volatility could come if hedge funds are forced to sell out of positions in order to cover failed short selling bets,
although it was unclear whether there would be enough of such selling to create a broad risk to equities.

Furthermore, market participants may choose to go for GME for a quicker turn a profit instead.

Oil prices traded mixed as demand concerns caused by new coronavirus variants and slow vaccine rollouts offset a cut in Saudi Arabian oil furnish and falling U.S. oil inventories.
Brent crude futures settled up 35 cents at $55.88 a barrel. U.S. crude futures fell 14 cents to settle at $52.20 a barrel.

Bitcoin spikes 20% after Elon Musk adds #bitcoin to his Twitter bio but retrace back. If you are trading cryptocurrency, watch out for immediate back up @ 30k & may consider Ethereum instead.

(Education)
What is short selling: Why risky (1 Common thing for those counters to be playout – Watch the video)
When a stock is heavily shorted, and investors are buying shares — which pushes the cost up — short sellers start buying to cover their place and minimize losses as the cost keeps rising.
This can create a “short squeeze”: Short sellers keep having to buy the stock, pushing the cost up even higher and higher. (This is what happened with the shorted stocks targeted by the Reddit investing crowd).
https://www.cnbc.com/2021/01/29/short-selling-what-it-is-why-its-risky-and-how-a-squeeze-happens.html

Coming week:

Earnings written report: Tech & Oil Sector
Watch out for XOM and COP to reckon the oil sector performance.

Economy written report: Initial Jobless Claims(Thursday) + NFP & Unemployment charge per unit on Friday

Review Trades/Chart:

DJI – Shorted – closed below $30k
DXY – back up line hold tight.
USOIl – Need monitor closely. cost Squeeze for past 2 week
STI – As always! Resisted by 3k main pivot dot last week. We are looking at 2850 follow by 2750 next (Follow FIBO) Waiting for 100D MA to catch up
Bitcoin – Spike after Elon Musk twitted but does not last. Better dont break 30k whole figure
Ag – Uptrend with TP1: $30 and TP2: $32.50

WBA – Hit TP2. Trade closed
LU – Hit TP2 – Trade closed (Overall still a good counter at the long side)
Ehealth – HIT SL (Importance of SL)
CANG – Shared in Telegram. Wild ride. Congrats if you have long on Monday (Can TP anytime at current cost, more than 50%)
JKS – Shared in Telegram. Watch out for $56. If break below, Cut
ACB – Shared in Telegram. Continue to Hold and honor first SL @ $9
Nikola – Mentioned on 10th Jan 2021. Good Quick turn a profit

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