France’s CAC 40 index briefly hits record high as European stocks continue to sizzle 0 (0)

<p style=““ class=“text-align-justify“>The high roughly 10 minutes ago hit 7,387.29, which eclipses that seen in January last year, and marks a new record high for France’s benchmark stock index. This continues to reaffirm that there really needs to be a distinction between European and US equities at the moment as the optimism in the former continues to run high.</p><p style=““ class=“text-align-justify“>The record high for the CAC 40 comes after we also saw a record high climb – which is continuing to run now – for UK’s FTSE 100 index. Next in line seems to be Germany’s DAX, which is now about 4.4% below its own record high. That seems like a stretch but so does saying that we could see a 12% move in seven weeks, which we are seeing since the turn of the year.</p>

This article was written by Justin Low at www.forexlive.com.

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S&P500 Technical Analysis 0 (0)

<p>On the daily chart below, we can
see that the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 4175 is still holding and the
buyers are having a hard time breaking it. You can feel the battle between
buyers and sellers as recently the soft-landing narrative changed into the no-landing
one where the Fed may have not done enough to depress growth and return
inflation back to the 2% target. </p><p>After the “wow” <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report, we saw the <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-cpi-64-yy-vs-62-expected-20230214/“>US
CPI</a> data
coming within expectations but those expectations were high with M/M readings
too high for a return to 2%. The disinflationary trend seemed also to have
slowed. </p><p>Yesterday we also got a big beat
in <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-retail-sales-30-vs-18-expected-20230215/“>Retail
Sales</a>, which is another bad signal for the Fed and may require a higher
terminal rate than they projected in December 2022. </p><p>In the 4
hour chart below, we can see that the constant knocking on the 4175 door
coupled with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> may form an <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>ascending
triangle</a> pattern. </p><p>The price
can break on either side of the triangle, as the buyers may have the strength
to break higher and lead to higher momentum or not enough strength exhausting them
and lead to a sell off as they cover positions and the sellers exacerbate the
downward momentum. </p><p>In the 1 hour chart below, we can
see more closely the recent catalysts and the market not doing much other than
chopping around. The price is basically in no man’s land and the best strategy
would be to wait for a clear breakout. </p><p>Today we will get the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>US Jobless Claims</a> data and although it’s likely
that we will see another round of choppiness after some volatility, big
surprises should move the market. </p><p>A big miss would again signal the
strength of the labour market, but a big beat would be less expected and
probably lead the market to speculate on weakening labour market going forward.
</p>

This article was written by ForexLive at www.forexlive.com.

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Dollar still going nowhere for the most part – for now at least 0 (0)

<p style=““ class=“text-align-justify“>Risk sentiment is steadier so far in European trading and that is seeing the dollar keep slightly lower on the session. The retreat in the greenback isn’t anything too notable, ranging around 0.2% to 0.3% against the major currencies bloc. Even though we did get major economic data releases this week, it doesn’t seem to have been enough to trigger much appetite in dollar pairs.</p><p style=““ class=“text-align-justify“>I’ll let the charts do the talking once again but TLDR: Nothing much has changed since this post on Tuesday <a target=“_blank“ href=“https://www.forexlive.com/news/what-are-the-key-levels-to-watch-for-dollar-pairs-ahead-of-the-us-cpi-data-today-20230214/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>EUR/USD is still largely caught in a bind after the failure to get above 1.1000 on the January rally. The rejection there now puts key resistance at the figure level while key support lies closer towards the January lows closer towards 1.0500. For now, price action is sort of consolidating right in the middle of that range below 1.0800 and that suggests a lack of directional momentum in play.</p><p style=““ class=“text-align-justify“>As for GBP/USD, the pair saw gains last month stall at the December highs around 1.2443-46 and then made its way back towards 1.2000 again. We did see a retest of the figure level yesterday and so far, buyers are still holding on. That said, bids on that side are acting as a decent support before we get to the key one in the form of the 100 (red line) and 200-day (blue line) moving averages at 1.1892 and 1.1939 respectively.</p><p style=““ class=“text-align-justify“>Adding to that support layer will be the the January lows in the region around 1.1841 to 1.1900 on the daily chart.</p><p style=““ class=“text-align-justify“>Much like EUR/USD, price needs a break on either side of the resistance and support levels noted to really indicate the next momentum move in pair.</p><p style=““ class=“text-align-justify“>Moving over to the antipodeans, first we have AUD/USD which has seen its strong start to the year thwarted by the August highs at 0.7125-36. Since then, we are seeing a bit of a retreat back under 0.7000 with buyers failing to get back above the figure level in recent attempts.</p><p style=““ class=“text-align-justify“>That is keeping sellers interested but they themselves have struggled to firmly break below the 19 January low at 0.6870 – at least on the daily chart. That remains a key short-term support level to watch before the 200-day moving average (blue line) comes into play closer to 0.6800 currently.</p><p style=““ class=“text-align-justify“>Then, we have NZD/USD which has seen its upside momentum stall again at around the 0.6500 mark – as it did back in December. The recent climb down has seen price action be caught in a bit of a consolidation territory since the end of last year. Key support lies closer to the December and January lows around the region of 0.6200 to 0.6230.</p><p style=““ class=“text-align-justify“>But just below that will be the 200-day moving average (blue line) at 0.6185, so any real push to the downside will require some real gusto to break below said support levels before the momentum gets going.</p><p style=““ class=“text-align-justify“>As you can see, most dollar pairs are not really going anywhere at this point as price action is caught in between key support and resistance levels. In other words, there needs to be a stronger trigger for price to break out and for a new momentum play to come about for traders. And we are just not there yet.</p><p style=““ class=“text-align-justify“>The only decent mover on the week seems to be USD/JPY, partly driven by higher bond yields.</p><p style=““ class=“text-align-justify“>Buyers look to be breaking away from the sequence of lower highs, lower lows as price pushes above short-term support around 132.87 to around 134.00 yesterday. Still, key support lies closer to the late December and January highs around 134.50 to 134.77 but I would just pin that at 135.00 as one can expect offers lined up at the figure level.</p>

This article was written by Justin Low at www.forexlive.com.

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How The Most Popular Stock Categories Differ From Each Other? 0 (0)

<p>Growth
and value are the two main techniques for <a target=“_blank“ href=“https://fxrevenues.com/signup“ target=“_blank“ rel=“follow“>investing in stocks</a>
and mutual funds. Growth investors look for businesses with substantial profit
growth, while value <a target=“_blank“ href=“https://fxrevenues.com/“ target=“_blank“ rel=“follow“>investors</a>
look for equities that seem to be undervalued in the market. </p><p>Together,
the two types can assist your portfolio in becoming more diverse because they
complement one another.</p><p>Growth
stocks are businesses that have recently experienced above-average earnings
growth and are anticipated to continue generating high-profit growth, though
there are no guarantees. </p><p>Enterprises
that are considered to be „emerging“ growth companies have the
potential to experience rapid earnings growth but lack a track record of doing
so.</p><p>Before
choosing to purchase a stock when investing in stocks, investors do so for two
reasons. First, we anticipate that the stock price will increase beyond the
date of acquisition. Second, because the shares will consistently pay
dividends. </p><p>Growth
Stocks </p><p>Growth
stocks do much better than value equities, the opposite of growth stocks.
Investors consider it an „excellent and costly“ stock (expand the
business and utilize significant investment). Some corporations do not pay low
cash flow and dividend yield or dividends. The following factors are considered
when determining which stocks are growth stocks.</p><p>·
Low dividend yield, below industry or market average.
For business growth, working capital needs to be set aside.</p><p>·
P/E Ratio is greater than the industry or market
average. These stocks have excellent sales and profitability. Therefore
investors are willing to pay a high cost for them. </p><p>·
P/BV Ratio is more significant than the industry
standard or the market average.</p><p>Value
Stock</p><p>Consider
the following when determining the factors that decide which stocks are value
stocks.</p><p>·
High Dividend Yield, above the industry average or the
market average</p><p>·
The P/E Ratio is below the industry average or the
market average, indicating that the company will do worse than its peers or
worse than predicted. </p><p>·
P/BV Ratio, below the industry or market average.</p><p>The
Risk and Return of Value Stocks</p><p>Value
companies are viewed as riskier than growth stocks despite their potential
upsides because of the market’s skepticism. Value stocks need to be perceived
differently by the call to become profitable because they are considered
riskier than emerging growth companies. A value stock is frequently more likely
than a growth stock to generate a higher long-term return due to the underlying
risk.</p><p>Investing
in both growth and value stocks</p><p>How should an investor proceed? </p><p>One
choice is to invest in both plans equally. Together, they broaden the equity
portion of a portfolio and provide opportunities for gains in either direction.</p><p>Because
the market moves in cycles of value and growth, assess your investing approach
and consider rebalancing your portfolio regularly to ensure that it maintains
your chosen allocation.</p><p>FINAL
OVERVIEW</p><p>It
could take a considerable time for a valued stock to recover from being
undervalued. Therefore, buying a value stock means that this emergence might
never occur.</p><p>Investors
who want to reach their financial objectives must fully comprehend the stock’s
fundamental characteristics and risk. The two most popular stock categories are
value stocks and growth stocks.</p>

This article was written by ForexLive at www.forexlive.com.

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