Stocks Start The Week On A Strong NoteMeanwhile, retail traders push silver towards the $30 level.
Traders Are Ready To Buy Stocks After The Recent Pullback
S&P 500 futures are gaining ground in premarket trading as traders rush to buy equities after Friday’s sell-off.
U.S. President Joe Biden will discuss his $1.9 trillion coronavirus aid package plan with Republican senators who want to implement a targeted package.
Uncertainty about the ultimate size of the coronavirus aid bill is providing support to the U.S. dollar. Interestingly, stock traders are not worried about the size of the stimulus bill as they focus on buying cheaper stocks after the recent pullback.
In addition, the recent data indicates that the situation with coronavirus has stabilized in most countries which also provides support to the market.
Silver Rallies Amid Strong Demand From Retail Traders
Silver has recently made an attempt to settle above the $30 level as the retail crowd focused on silver-related assets.
While the recent short squeeze rallies in stocks like GameStop or AMC Entertainment Holdings were mostly fueled by demand from U.S. – based Reddit traders, silver’s rally is also supported by strong demand from Chinese investors.
If silver manages to settle above the $30 level, it may gain additional upside momentum which will be bullish for stocks of silver miners. It should be noted that gold is still struggling to settle above the resistance at the 50 EMA at $1865 so silver’s rally is not supported by gold investors.
Oil Moves Higher At The Start Of The Week
The recent Baker Hughes Rig Count report indicated that the number of U.S. rigs drilling for oil increased by 6 to 295. The number of U.S. drilling rigs continues to increase week by week but the U.S. production does not grow.
In fact, the latest EIA Weekly Petroleum Status Report indicated that U.S. oil production declined from 11 million barrels per day (bpd) to 10.9 million bpd.
In this light, oil traders will likely ignore the continued increase in the number of U.S. drilling rigs which will be a bullish development for oil and oil-related stocks.
For a look at all of today’s economic events, check out our economic calendar.