 Good morning and welcome to the weekly market update with me David Madden. Today's date is Monday the 1st of February 2021 and the time has just gone 1010 GMT and it's been a fairly positive search to the European trading session We saw a lot of volatility in the financial markets last week. That was largely driven by the the stories circulating around the likes of reddish and the stocks that were very much in play Where stocks such as game stock was it was big one and to an extra extent AMC entertainment and all on top of that Blackberry as well and amongst a few others The major kind of theme of the last few days has been that So while swings are bringing to the upside in a handful of stocks Which were heavily shorted and this and this kind of came about by by a band or swarm of Retail investors Looking at buying up stocks that were heavily shorted with the view to creating a short squeeze That drove things higher and higher it inflicted quite a bit of pain a number of hedge funds on the back of that We then saw Some of these trading apps which the retail investors have been using and are curtailed activity in terms of ability to open new positions or add to new positions or in some case Actually, we're not even allowed to open new positions For the back in the last week those restrictions were perlucent So we did see a return to volatility on Friday over the weekend. It seems that the kind of the Individuals chatting to each other On the likes of reddish and these kind of forums moved away kind of something. Oh, spend more time talking about silver the you know a hashtag, you know Hashtag silver short squeeze Was that was doing the rounds and with that we saw major pretty big move to the upside in silver silver It's you know, it's nearly up 10% on the day And with that we did see a kind of broader upward move in mining stocks We saw on Australia and I'll see on the London market as well Now even though sentiment and regionally last night US and next future traded lower and that Mission negative impact a kind of wider sentiment, but the mood turned around and partially because probably because The regulator was very concerned about the potential ramifications of a short squeeze impacting hedge funds which could potentially cause losses or you know trickle down losses around around around the world Are on the right system, but it seems to me that and the financial markets are less spearsville all you know individuals Trying to create a short squeeze and a big macro product like silver because it's much more difficult Even if you get you get a lot of individuals together as difficult to get a ramp up the price on its own Whereas low liquidity stocks such as game stock and get these much more Wild moods someone seems to me that the the mood in the overall financial markets has been It's less fearful now because it seems to me that traders you were trading stocks and other other bit other Other other shares are looking at well if the retail if the swarm of retail Investors are focusing on a big micro a macro product such a silver It's probably not going to have a massive, you know negative ripple on effect across the financial markets So European stock markets are pulling back pulling back some of the losses that will occur at last week US index futures are trading higher as I mentioned silver is up well over 9% There's a big move to the upside on that as always with my videos I run through the week ahead. I cover cover the big indices the big currency pairs and also the big commodities and yes I definitely will be able to take me look at silver's price So take a look at the week ahead. It can be found on our website CMC markets calm under insights and under the latest news and analysis So the vaccine story continues to be in tick away in the background We also have a big number of big companies reporting last week Forward to come this week, but like I said, all the kind of the volatility surrounding likes a game stop really stole the headlines last week So US reporting season is continuing tomorrow. I choose the night off the best Google's parents will post their board court numbers. Let's see how they do on the advertising front They've been very good at kind of stealing business away from the kind of traditional advertising agencies such as WPP Amazon who have obviously cleaned up because of the because of the pandemic their demand across the board For for items as skyrocketed. So they're like unless they're going to have high expectations for their numbers BP of foliar numbers coming up tomorrow That's going to be in focus the British oil giant oil giant is good moving away from Faster fuels looking forward towards renewables, but that's going to be a slow process We have fourth quarter GDP numbers coming out from the from the from the EU keep mine at the back in the last week We get updates from France Germany, Italy They were all quite low if the French reading for Q4 was negative the Italian and the German figure were positive But only ever saw slightly On Wednesday, we have the global service PMI reports coming out Well, I've found a number of countries from China the main European economies and also on the US Both of only the telecom giant have their third quarter numbers coming out on On Wednesday also the Bank of England have registered a station on Thursday not a few weeks ago We heard from the governor of Bank of England, Mr. Andrew Bailey He basically seemed to kind of talk down the idea of negative interest rates Controversial policy and those were the reasons why the British pound did it fairly well in the last few weeks So any kind of updates in relation to that to be fair some people were looking at a goal You're always mentioning a negative interest rates But it seems to me that you're just mentioning it as a so if you do go down that route at some point You can always say well, we talked about it before and but there never seemed to be overly convincing about it And most recent update in relation to negative interest rates seem to talk it down BT the telecoms company I have their third quarter update on Thursday morning Role that shell we're gonna have their there for your figures obviously tomorrow we have BP So that we see on the PP could set the tone or raw Dutch's numbers coming out two days later Peloton interactive Peloton. We've also been seen a lot of them seen a huge jump in demand on the count of the other of the of the pandemic and people doing exercises at home There they're a second quarter numbers are coming out on Thursday and the major Update of the week US non-farm payrolls coming out on Friday and speaking of which my colleague Michael Houston will be calling a live Non-farm payrolls webinar feel free to sign up for that if you go to our website seems to your markets calm under insights You can see web camp where webinars and events and that's going to commence on Friday the 5th of February 1315 GMT No as promised I'll run through the major markets covering the major indices currency pairs and quantities So starting off with the footsie 100 This is a bit to be honest the The price action we've seen it on the footsie 100 than I asked you and ask you sessions And it's quite similar to what we've seen across the board on the DAX and the Dow and the S&P Because my analysis was a seem quite similar, but we had you know a multi-year hike and it was a 10-month high was achieved In early in in early in early January. I was in the back of the kind of the hope separate that Mr. Biden will get on the stimulus route That's going to kind of common theme event if we've been treated from the recent high We've been pushing lower Because of all the uncertainty in relation to the game stock of the likes We did fold kind of multi-week lows at the back end of last week, but if you look at today's candle So far, it's been quite big. It's been quite bullish rather It seems to I mentioned sentiment as I turned around today because it's into fairly seem to be less fearful that if a group of Retail investors are targeting something like silver for a short squeeze That's less likely to have a negative impact and become a wider financial system If you do a short squeeze and a couple of stocks I could potentially have made your applications for a hedge fund or two Which if they get into trouble could rip a lot across the entire financial system So we are seeing a decent rebound and this can so far looks quite looks quite bullish Obviously where we've got quite a bit of trading left to see if you can get hold above the recent lows I think it you know it hold above the recent lows that can act as a decent floor And if you do manage to build build on those gains We could look at heading back towards the fifth of the moving average of blue line there in a 6,564 no sound and several occasions a blue line the fifth of the movie average acted nicely as resistance And the metric has been of importance in the past. It makes it more likely it'll be of importance in the future And then if it be Movie on the fifth day movie average and maintain above the fifth day movie average We could then be looking at heading back up towards 6,900 and then we could be looking at heading back up towards the other recent highs that were set in early January around 6,957 But it could do move lower from here and if you take out today's lows We could be looking heading back down towards well if you look this general zone what I want to take me will be average in a 6258 down to the this red line the water that we will be average in a 6168 Notice how once again the yellow line the only movie average active as a Support and resistance not too long ago And we slip we did see the turn of the movie average also acting like his resistance back in early November So this general zone around here could actually support should receive and move to the downside If you do break below the turn of the movie average then if you get it in psychology form 6,000 number will then be on the radar Turning our attention now to what's going on over in Germany on the DAX So the DAX was in far better shape than the FTSE 100 When these and they've been a recent volatility spiked the recent highs on the on the DAX were all-time eyes They were in quite decent shape as you can see here You know the market's leaving it in a strong open trend the last few months If you take a look at the price action similar to the FTSE We have moved kind of address below today's candle is already looking quite bullish And we obviously have a few more hours of several more hours of trading left We could be looking at a bit a bullish engulfing whereby the body of this candle here this this rectangle It's almost nearly engulfed the previous days, but the Red rectangle here body of Friday's candle almost us and we obviously see how today's trading session plays out But it's looking quite bullish so far if you could hold above today's loans It's likely we could see the kind of broader uptrend to continue I should that be the case we feel like you're heading back towards 14,000 You know it's big number and then if you go beyond that We could then be like retesting the highs or the all-time eyes that were achieved in early January Most of the downside if takeout today is low We could be taking any back down towards this yellow line here the 100 moving average in a 13,156 And if you go below that you could be heading out down toward this support line here It's sort of in the zone of between just north of 13,000 say 13,040 down to around 13,000 itself And if you do have a decent break below that we can then be then head and head head back down towards this red line here You 200 day moving average Over in the US what similar situation of I it was relatively not a long ago We were at all-time highs on the on the Dow Jones on the S&P 500 similar scenario We retreated from all-time highs the volatility of the kind of GameStop saga last week Poor pressure, but we are seeing a reversal in sentiment And if we can hold above the lows of today and we can if we retake this blue line here the fifth any moving average When we go beyond that we continue to move beyond that we can then be looking heading up towards 31,000 and then if you go beyond that because I'm looking at retesting the highs the recent highs They're only set not that long ago in terms of the the record highs If you do matter if the market does matter shoot turn over on itself yet again We could be like you heading back down toward this area here with us where this line is here in at 20 29,461 and if you take out that low because we can then be heading back towards the lows of early November in around 28,868 Taking a look now what's going on with the S&P 500 I feel like I'm repeating myself here by we were at all-time highs not that long ago Volatility is surrounding kind of GameStop move the markets lower notice how even before We traded below the fifth any moving average and acted nicely a support So it goes to show you that even amid amidst all the uncertainty of the GameStop Volatility on a couple of occasions the fifth any moving average did act nicely a support So it wasn't what's the reason big deal in the in the overnight index future session where it traded below a pot We seem to be back trading hovering around that metric in the moment. We're currently trading 3744 the fifth any moving average is a bit below that at 3723 so while we hold above the fifth any moving average of the blue line It's likely that the broader upward trend is going to continue moving on higher front here We could be looking at retaking 3800 and then if you go beyond that you can really retesting the all-time highs If you do move to come out you can move lower from here We could be like any back down towards kind of 3600 area the lows it can late November and also the loans Well close ish to the loans of mid to late of mid to late December as well So keep an eye for 3600 to the downside. I'll take a quick look now What's going on and commodities and they're thinking like a currency to last Change up the order because I know commodities break is silver has been an importance today So silver already was showing signs of turning around If you look at no a couple a couple weeks ago, we saw here after silver on a fairly Had a fairly sizable pullback. We saw here on Monday the 18th this candle here We should go about the time saying that had the potential to be a hammer formation Where by the market did move lower, but it closed me, you know, we can see that the body of the candle Closed near the top of the session also the long wick on the candle kind of denotes indecision So we have been moving lower We're now seeing what could potentially to be a hammer formation as we saw it went on to That appears to be the case because market moved higher It pulled back its own support nicely from the only moving average at 24 spot 86 And then moved on higher as gay but Keep in mind we did manage You could have created a bit of a gap there even long wick of this candle when you have these kind of moves You know 10% of the back of a short squeeze being talked about a reddit. It could be a sign It might be it's possible that we could see a bit of a cooling off other the upward trend continues But of a slower pace we might even see a bit of a pull a bit of a pullback because aggressive moves like this Are difficult to maintain. So the market is moving higher positive mental It'll get back the indicator is moving higher as well So you'd be confident that the upper moves going to continue But we just just be be careful that we could see a bit of a cooling off We're currently trading You know, we've got we've got as high we got a close We'll just north of kind of 30 bucks on offer server We have read to be treated since then we're currently at 29 spot 30 if they can a broader upward trend does continue from here We keep looking at targeting We could be looking at targeting 32 spot 47, which is again the highs of in around January Highs of January 2013 and if you go beyond that we can they be looking at targeting the highs of September 2012 back around 35 spot 38 To keep an eye for those Levels to the upside if they can a broader uptrend continues if we do manage to move lower from here sport could come into play in around 28 notice how it wasn't too far away from 28 with 27 spot 1992 was the highs of mid-January also we create a small bit of a gap here not a huge amount but One of the kind of it when the kind of that the midst of of gaps is that they're always filled But they are often the fill so it could be the case at the market retreats goes back fills this gap And they're just go just goes below sub 28 or down towards 27 spot 65 And then potentially before potentially carry on the broader up our trend It's only really if you're going to take out the one on our day moving average The that the airline there should then we kind of begin to be concerned about the reliability of the kind of recent upward move Continuing with commodities going to gold gold has been kind of shunted around because the music we've seen in silver We can see here that it's hovering just just above its Trinity movie average which comes into play at 1850 we're currently on 1859 on gold We've seen a lot of long wicks on these candles here and it seems which tends to denote in decision So it seems to me that that gold is a bit unsure of which way it's going to go It's kind of training in a relatively small range if you can continue to hold above the tour to move the average The kind of the more recent upward move is more is likely to continue We could be looking at retesting the kind of the the 1900 area Conversely if you take up the recent lows you got last week's lows in around 1831 We could then be looking heading back down towards the lows of mid-January in around 1880 for Coming on now to oil Take a look at Brent crude oil to be honest Brent crude oil and the oil market has been fairly quiet We can a racked up multi-month highs 11 month highs were achieved in the middle of the middle of January and ever since then The mark has been training in a relatively tight range It hasn't it's given up a small bit of the ground But not a huge amount of a broader upward trend is it very much intact while we culture While we hold above this blue line here at the fifth of the movie average It's like it that a broader upward trend is going to continue So 60 bucks a barrel is going to be the level Traders will be keeping my for a move lower could find a support from the fifth of the movie average in a 51 spot 86 We can see in a few occasions that actually had resistance back in October and also a support in November And lastly coming on the currency so that the currency is the last system round because Silver has been the hot market of the of the session of the hour so we can see here that The euro dollar hit its highest level over two years in the inner January It's had a move to the downside found support from this blue line here the 50 movie average more recently We have seen that it's the back below the fifth of the movie average Which is itself is a bit of a bit of a negative indication But we're still a couple to be about the kind of 120 mark So if you can hold above the kind of recent the recent the recent lows in at one spot 2058 and also kind of one one spot 20 itself is going to big big number We could see the kind of broader upward trend continued But if you do have a fairly aggressive move through back through one spot 20 58 I can put one 20 on the on the on the radar and a move below that could take us back down towards the lows This kind of late November early December in around one spot 19 One spot 1923 I moved to the upside Could take his head as you could see it heading v-testing one one kind of one spot 22 And if you go beyond that you hear like me attesting the multi-year highs that were achieved in the first week of January And lastly come up to pound on earth Lastly, it's been a fairly quiet morning one pound on earth We have seen it was only very recently we've been fed its highest level over two and a half years of palm dollars And the strong upper trend to be honest the the range as we've seen have been relatively quiet In that regard it's a bit uninteresting But the upward trend isn't very much intact. It seems to be kind of finding it difficult to to advance So it could be a sign that the upward trend is going to continue But maybe on a less aggressive pace We could see that a sideways trading or even a bit of a pullback But you know we're well above the faith that the moving average so the broader upward trend is not very much intact If you move on higher from here because we're currently in at one spot 3707 the next big number to watch out for 11 watch out for will be 140 Any moves with a downside could see a support coming to play it from my last week's load in around One spot 36 or 9 and then if you go below that keep an eye for this blue line here The fifth any moving average it actually might see a support on a couple of occasions in December So keep an eye for that metric that level to the downside should we have a very decent pullback That's all from this video. Thank you for listening. Have a good training week and good luck