Quote from Nick on 10th March 2021, 10:25 am

FTSE 100 live outlook prediction analysis for 10th March 2021

Tesla revved up Wall Street on Tuesday as dip-buying investors piled into tech stocks that have taken a battering in recent weeks. The Nasdaq Composite closed 3.7pc higher, reversing a sell off on Monday that sent the tech-exposed index into correction territory, more than 10pc below its February peak.

Investors put a halt to Tesla’s five-day slump to send shares of Elon Musk’s electric vehicle maker up as much as 20pc in its biggest gain in more than a year.
The losing streak had shaved nearly $150bn (£108bn) off Tesla’s market capitalisation, according to Bloomberg.

London stocks were volatile through the session, with the FTSE 100 dipping, rising strongly, and then falling back to only minor gains by the end of the session.

Tesla Hacked

A group of hackers say they breached a massive trove of security-camera data collected by Silicon Valley startup Verkada, gaining access to live feeds of 150,000 surveillance cameras inside hospitals, companies, police departments, prisons and schools, as well as Verkada customers. Tesla and software provider Cloudflare were on the list of the companies exposed. Some of the cameras use facial-recognition technology to identify people captured on the footage. Meanwhile, China’s Microsoft hack last week, as well as Russia’s SolarWinds attack, is threatening to overwhelm the U.S., according to former officials and private security firms.

The Rebound

Asian stocks looked set to benefit from a rebound in growth shares that sent the Nasdaq 100 to its biggest gain since November. The dollar sank with Treasury yields. The rotation to value shares reversed violently Tuesday with stay-at-home winners surging after being left for dead as vaccinations picked up and Democrats moved to inject $1.9 trillion into the economy. The Nasdaq 100 climbed 4% as stocks with high valuations rebounded. Tesla jumped 20%. Gold surged more than 2% after falling to its lowest since April. Bitcoin traded above $54,000. Oil and copper retreated after recent rallies.

3 Billion Shots

BioNTech could have capacity to make 3 billion doses of Covid-19 vaccine with U.S. partner Pfizer next year, the German company’s chief executive officer said, making their pioneering shot far more widely available around the world. Both the U.S. and Europe have sought to accelerate vaccine deliveries this year as new, more aggressive variants of the virus spread. Pfizer and BioNTech have committed to make 2 billion doses of their two-shot vaccine this year, which has recently shown a high ability to neutralizecoronavirus strains first detected in Brazil, the U.K. and South Africa.[Bloomberg]

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US & Asia Overnight from Bloomberg

Asian stocks were steady Wednesday as traders evaluated the biggest jump in the Nasdaq 100 since November and whether a rout in China will stabilize. The dollar pared some of its overnight losses and Treasury yields held declines.

The Nasdaq 100 advanced 4% on a revival of higher-valuation stocks such as Tesla Inc., which jumped 20%. The move snapped a rotation into value shares based on optimism about an economic reopening aided by fresh stimulus and vaccines. S&P 500 contracts and futures on the tech-heavy gauge dipped.

In Asia, Chinese shares rallied from a slump on Tuesday that evaded state efforts to slow the pace of losses. Hong Kong’s benchmark rose and Japan fluctuated. Treasury yields steadied below their recent peaks as the first in a string of U.S. auctions went off without disrupting markets. Bitcoin dipped below $54,000 after reaching a two-week high.

The pullback in Treasury yields encouraged investors to wade back into growth stocks, which suffered recently amid concerns about valuations. The prospect of faster inflation as economies recover from the pandemic has pushed up longer-term borrowing costs this year. In China, a report showing surging producer prices highlighted the risk of the nation exporting inflation as factories charge more for goods sold abroad, and upcoming consumer prices data in the U.S. are expected to show a slightly faster annual increase.

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

Smidge too early with the FTSE short order at the 6765 level but it dropped off over 100 points from just higher up at 6790. The bears are still sniffing around! Nice S&P short at the 3900 area though overnight has seen that steadily decline to 3860 this morning, and the bulls will certainly be keen to step up again. Likewise on the FTSE there are a cluster of supports at the 6680 area and the bulls will be keen to defend this first thing, as we are looking at opening right on this area.

If the bulls hold 6680 to start with we should get a rise towards the daily pivot and red 30m coral at 6737 - and then we may well see the bears appear here. With the drop off yesterday the 2h chart has gone bearish and has resistance at 6725. Ergo I am liking this area today for shorting. We do have the 25ema on the daily chart though splitting those levels at 6710, so bear this in mind as we may see a reaction here. I prefer the higher level though.

If the bears break the 6680 level then a slide down to S2 at 6635 looks likely, and we also have the 25ema on the daily chart here, so we may well see a defence of this level. A break of that though and then sup 6600 beckons and a possible test of S3 at 6584.

The S&P bulls will be keen to buy it back up though and break the 3900 level if they can - that could see a test if the top of the Raff channels at the 3930 level if so. I have plotted a pink arrow on the S&P chart as well as a break of the 3843 support area will likely lead to further selling down to the 3820ish area, and possibly S2 at 3794 below that.

So, looking at a rise and dip again, bit like yesterday really, and watching the 6730ish area as the main resistance.

Good luck today.

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