Here are today's directional views from the global research desks of Trading Central! These are starting points for your own research to identify opportunities that make sense for you. Like what you see? Feel free to forward this to a friend!
Market Wrap: Stocks, Bonds, Commodities
Thursday brought a mix of results for U.S. stocks, with the Dow Jones Industrial Average gaining 163 points (+0.47%) to 35,225, marking an impressive nine-session winning streak. However, the S&P 500 fell 30 points (-0.68%) to 4,534, and the Nasdaq 100 took a significant hit, tumbling 360 points (-2.28%) to 15,466.
Among the sectors, insurance (+2.31%), pharmaceuticals & biotechnology (+2.09%), and utilities (+1.85%) sectors performed well, while automobiles (-8.24%), semiconductors (-3.21%), and media (-2.79%) sectors faced the biggest losses.
Tesla (TSLA) tumbled 9.74% as the electric-vehicle maker reported a lower-than-expected second-quarter gross margin, hitting a four-year low.
Netflix (NFLX) slid 8.41%, with the video-streaming service provider's second-quarter revenue and third-quarter revenue guidance missing market expectations.
On the brighter side, drug-maker Johnson & Johnson (JNJ) rose 6.07%, and United Airlines (UAL) climbed 3.23%. Both companies posted better-than-expected quarterly earnings and raised their full-year earnings guidance.
Abbott Laboratories (ABT) also advanced 4.24% as the health-care-product maker's quarterly revenue and earnings surpassed market expectations.
Used-car retailer Carvana (CVNA) retreated 16.25% after a remarkable surge of over 40% in the prior session.
The U.S. 10-year Treasury yield rebounded, gaining 10.2 basis points to 3.850%.
Regarding U.S. economic data, the latest number of initial jobless claims fell to 228,000, the lowest level in nine weeks. The Philadelphia Fed manufacturing index was little changed at -13.5 in July (vs -9.0 expected).
The number of existing home sales declined 3.3% on month in June (vs -1.2% expected).
In the European markets, there was a positive note, with the DAX 40 rising 0.59%, the CAC 40 increasing 0.79%, and the FTSE 100 gaining 0.76%.
Moving on to commodities, U.S. WTI crude futures added $0.28 to $75.63 a barrel, while gold prices slipped $7 to $1,969 an ounce.
Market Wrap: Forex
The U.S. dollar maintained its strength against other major currencies, with the dollar index rising to 100.84.
EUR/USD fell 71 pips to 1.1130. In Germany, the producer price growth slowed further to 0.1% on year in June (vs -0.2% expected). France's business confidence index remained stable at 100 in July, in line with expectations.
GBP/USD dropped 75 pips to 1.2865.
USD/JPY climbed 44 pips to 140.09. This morning, Japan's data showed that the inflation rate edged up to 3.3% on year in June, as anticipated.
AUD/USD added 6 pips to 0.6778, with Australia's data showing the economy added 32,600 jobs in June (vs +25,100 jobs expected), and the jobless rate fell to 3.5% (vs 3.6% expected).
USD/CHF gained 81 pips reaching 0.8668, while USD/CAD added 10 pips to 1.3174.
Failing to hold at levels above $30,000, Bitcoin retreated to $29,800.
Gold Intraday: key resistance at 1979.00.
Pivot:
1979.00
Our preference:
Short positions below 1979.00 with targets at 1965.00 & 1959.00 in extension.
Alternative scenario:
bove 1979.00 look for further upside with 1987.00 & 1993.00 as targets.
Comment:
Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited.
Crude Oil (WTI) (Q3) Intraday: further upside.
Pivot:
75.15
Our preference:
Long positions above 75.15 with targets at 76.20 & 76.85 in extension.
Alternative scenario:
Below 75.15 look for further downside with 74.50 & 73.80 as targets.
Comment:
The next resistances are at 76.20 and then at 76.85.
EUR/USD Intraday: under pressure.
Pivot:
1.1175
Our preference:
Short positions below 1.1175 with targets at 1.1110 & 1.1080 in extension.
Alternative scenario:
Above 1.1175 look for further upside with 1.1195 & 1.1215 as targets.
Comment:
The RSI calls for a new downleg.
Bitcoin / Dollar intraday: the downside prevails as long as 30080 is resistance
Our pivot point stands at 30080.
Our preference:
the downside prevails as long as 30080 is resistance
Alternative scenario:
The upside breakout of 30080, would call for 30490 and 30740.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 29971 and 30013).
S&P 500 (CME) (U3) Intraday: under pressure.
Pivot:
4592.00
Our preference:
Short positions below 4592.00 with targets at 4545.00 & 4528.00 in extension.
Alternative scenario:
Above 4592.00 look for further upside with 4610.00 & 4625.00 as targets.
Comment:
The RSI is below its neutrality area at 50%
Tesla intraday: the RSI is oversold
Our pivot point stands at 295.8
Our preference:
The downside prevails as long as 271 is resistance.
Alternative scenario:
The upside breakout of 271, would call for 278.4 and 282.8.
Comment:
The RSI is below 30. It could either mean that prices are in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Tesla stands below its 20 and 50 period moving average (respectively at 278.17 and 285.88).
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.
