The first official trading day of 2023 is marked by traditional flight-to-safety among investors, with both the US bond market (Treasuries) and the US Dollar ($DXY) trading higher for the session on the back of risk aversion.
Growth stocks are suffering the most, with Big Tech giants, like Apple ($APPL) and EV giant Tesla ($TSLA) undergoing deep losses, with the latter down -14.14% for the day at the time of this writing.
In the Tesla ($TSLA) chart below, you can see that after the opening gap, the stock tumbled lower and has maintained an oversold reading on the stochastics, with very little opportunities to short the stock at resistance, upon a pullback in price.
This sell-off in Tesla is weighing on Growth-oriented stocks as seen in the market barometer below.
Although today is looking to be a rough start for US equities in 2023, I don’t believe today’s price movements will be indicative of how global financial markets will move throughout the rest of the year. But, this could be a sign that unusual levels of volatility will still be characteristic of the financial environment for this year’s price action.
For spot currency traders, look for intra-day opportunities to buy the safe haven $USD, $JPY, $SGD, and $CNY after a test of structure.
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Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.