Trade Idea (2020-11-25) Risk-on, DJIA hit 30,000

Trade Idea

Good morning.

This week, the United States has Thanksgiving on Thursday, 26th, and it will be a four-day holiday. It is a week when it is easy to adjust the position as a whole.
Also, the end of the month is approaching, be careful about rebalancing at the end of the month.

US stocks continued to grow significantly. The Dow Jones Industrial Average hit the $ 30,000 mark for the first time. Although the infection has continued to spread at the moment, expectations for vaccines are boosting. It also speculated by other factors that the Trump administration had begun the process of transitioning to the Biden administration, and indicated that it would appoint the Fed’s former chairman, Janet Yellen, as the next Treasury Secretary (strengthening cooperation between the Treasury and the Fed, finance). It was well reacted (from the expectation of maintaining easing and expanding the budget).

The foreign exchange market has become a typical risk-on situation. AUD and NZD as risk currencies were bought. EURUSD was temporarily repurchased after falling to 1.184 and ended around 1.189. However, EURUSD seems to have strong upside resistance at the 1.19 level. Both USD and JPY have been sold as safe currencies, and has little sense of direction, ending in the middle of 104 zone.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJIA: 30,046.24 (+454.97, +1.54%)
NASDAQ: 12,036.79 (+156.15, +1.31%)
S&P 500: 3,635.41 (+57.82, +1.62%)
GOLD: 1,809.3 (+4.7)
OIL: 45.24 (+0.33)
US 10-YR: 0.9 (+0.018)
VIX: 21.64 (-1.02)

Asian market today

Nikkei: 26,589 (+423)
CME Dow future: 30,132~(+85 Dow)

Economic indicators in this week

13:30 US) New Jobless Claim
15:00 US) New Housing Sales