Market Resurgence: Stocks Rally, Cryptos Surge, and Forex Fluctuations - February 15, 2024 Update

DAILY MARKET NEWSLETTER

February 15, 2024

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Wednesday, U.S. stocks staged a recovery, reclaiming some of the losses from the previous session. The major indices all showed positive momentum: the Dow Jones Industrial Average surged 151 points (+0.4%) to reach 38,424, the S&P 500 climbed 47 points (+0.96%) to 5,000, and the Nasdaq 100 gained 207 points (+1.18%) to 17,807.

Key sectors driving the market included industrials, communication services, and consumer discretionary stocks. Notably, Nvidia (NVDA) set a new closing record at $739.00, with the chipmaker's market cap now standing at $1.83 trillion, making it the third most valuable U.S. company.

Lyft (LYFT) saw a remarkable surge of 35.12% following its better-than-expected quarterly results and strong guidance. Uber Technologies (UBER) also experienced a significant uptick of 14.73% after announcing a $7 billion share buyback program. Other notable gainers included Meta Platforms (META), Tesla (TSLA), and Amazon.com (AMZN).

In the cryptocurrency sphere, Bitcoin's breakthrough above $51,000 propelled related stocks higher. Marathon Digital (MARA), Microstrategy (MSTR), and Coinbase Global (COIN) all posted gains.

Meanwhile, the U.S. 10-year Treasury yield declined by 6.1 basis points to 4.255%. European markets mirrored the rebound, with the DAX 40, CAC 40, and FTSE 100 all showing positive movements.

In commodities, U.S. WTI crude oil retreated by $1.32 (-1.70%) to $76.55 per barrel, with crude oil stockpiles showing a significant increase according to the U.S. Energy Department. Gold prices remained steady at $1,992 per ounce.

MARKET WRAP: FOREX

In the forex market, the U.S. dollar index dipped to 104.72. Among major currency pairs, EUR/USD gained ground to 1.0726, while GBP/USD dropped slightly to 1.2563. USD/JPY declined to 150.59, reflecting unexpected shrinkage in Japan's GDP. AUD/USD showed strength, rising to 0.6491.

Bitcoin surged to $52,100, marking its highest level since December 2021, before settling around $51,800. Its total market value crossed $1 trillion, outpacing gold.

TRADE ANALYSIS

GBP/USD Intraday: rebound expected

• Pivot:1.2535

• Preference:Long positions above 1.2535 with targets at 1.2590 & 1.2610.

• Alternative scenario:Below 1.2535, look for further downside with targets at 1.2515 & 1.2500.

• Comment:The RSI is mixed with a bullish bias.

• 

USD/JPY Intraday: under pressure

• Pivot:150.65

• Preference:Short positions below 150.65 with targets at 150.00 & 149.75.

• Alternative scenario:Above 150.65, look for further upside with targets at 150.90 & 151.20.

• Comment:The RSI lacks upward momentum.

• 

EUR/USD Intraday: the bias remains bullish

• Pivot:1.0710

• Preference:Long positions above 1.0710 with targets at 1.0740 & 1.0755.

• Alternative scenario:Below 1.0710, look for further downside with targets at 1.0695 & 1.0680.

• Comment:Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

• 

Dow Jones (CME) Intraday: further upside

• Pivot:38300.00

• Preference:Long positions above 38300.00 with targets at 38630.00 & 38740.00.

• Alternative scenario:Below 38300.00, look for further downside with targets at 38120.00 & 37970.00.

• Comment:The next resistances are at 38630.00 and then at 38740.00.

• 

Please note that due to market volatility, some key levels may have already been reached and scenarios played out.