During the early part of last week, the theme was buy risk and sell euro. Risk appetite was given a strong boost by global manufacturing data from China to UK to US. While Euro selling persisted, risk markets failed to extend rally even with a very solid employment report from US. Major stock indices did close the week up even though paring much of the earlier gains. Crude oil and gold both closed above key psychological level of 100 and 1600. The set back in risks looked corrective so far. We believe that markets have overshoot on the first day of the year and then consolidated. And traders are starting to be cautious ahead of the string of earning releases, starting from Alcoa on Monday, JP Morgan Chase on Friday … Read entire article »