Short Term Trading Week Starting: 29 Jan, page-71

Good morning traders,

Equity buyers are happy, gold bugs are happy and if you trade anything related to monetary policy or US earnings, you might be happy too…

US indices on Wednesdays' close: SPX: (+1.55%), NDX: (+2.64%), Dow: (+1.77%) and RUT: (+1.05%)

Dow outperformed initially on BA earnings and then the tech sector and NDX took over.

Highlights: FOMC statement, FOMC press conference and FAANG

Pending Home Sales (I don't know why I told you it was released at 08:30, Real Estate data is always released at 10:00) disappointed but did not cause much fear.  ADP private payrolls came in fairly strong ahead of Friday's NFP employment number.

ES Profile Balance was good overnight and slightly net long.  There was a gap up, a test of that gap and then ES traded higher.

AUD/USD was very perky today with the USD index at 95.418 (-0.42%) and February gold currently  GCG19 1319.50 (+0.73%) is still very active while decompressing and April gold GCJ19 currently 1325.50 (+0.72%)  is getting some volume.  Treasuries are mostly up but mixed with the short end getting the attention and the long bond getting sold.

News: South China Morning Post reports that Chinese developers issued $860B in offshore bonds in 2019.  That is much more than was issued by this time last year.  SCMP also said that multiple talks are likely before substantial agreements can be made.