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
On Wednesday, U.S. stocks showed resilience despite higher-than-expected inflation data. The S&P 500 climbed 5 points (+0.13%) to 4,467, the Nasdaq 100 gained 58 points (+0.38%) to 15,348, while the Dow Jones Industrial Average declined 70 points (-0.20%) to 34,575.
U.S. data showed that the inflation rate rebounded to 3.7% on year in August (vs 3.5% expected, 3.2% in July), while the core inflation rate declined to 4.3% on year (vs 4.4% expected).
This led investors to widely expect the Federal Reserve to keep interest rates unchanged in September.
The U.S. 10-year Treasury yield dropped 3 basis points to 4.250%.
Retailing (+1.44%), automobiles (+1.25%), and utilities (+1.20%) stock sectors outperformed the market, while technology hardware & equipment (-1.01%), capital goods (-0.98%), and real estate (-0.86%) sectors came under pressure.
Amazon.com (AMZN) rose 2.56%, and Tesla (TSLA), Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) all gained over 1%.
On the other hand, Apple (AAPL) fell 1.19%, and Netflix (NFLX) slid 5.16%.
And 3M (MMM) declined 5.70%, Dow Inc (DOW) slipped 1.51%, and Caterpillar (CAT) was down 2.09%.
Moderna (MRNA) climbed 3.18% after the biotech firm said new products related to oncology and rare diseases could boost annual sales by $10-15 billion dollars by 2028.
American Airlines (AAL) sank 5.67%, and Spirit Airlines (SAVE) lost 6.25%. Both airlines gave down-beat earnings forecast.
Ford Motor (F) rose 1.53% as the stock was upgraded to "buy" at UBS.
European stocks closed lower. The DAX 40 fell 0.39%, the CAC 40 dropped 0.42%, while the FTSE 100 was little changed.
U.S. WTI crude futures declined $0.32 to $88.52 a barrel. The U.S. Energy Department reported an addition of 3.96 million barrels in crude-oil stockpiles (vs a reduction of 1.91 million barrels expected).
Gold price dipped $5 to $1,908 an ounce.
Market Wrap: Forex
The U.S. dollar stayed firm against other major currencies, with the dollar index edging up to 104.76.
EUR/USD fell 23 pips to 1.0731. The Eurozone's industrial production fell 1.1% on month in July (vs -0.3% expected).
GBP/USD was relatively flat at 1.2489. U.K. data showed that the gross domestic product shrank 0.5% on month in July (vs -0.3% expected), and industrial production dropped 0.7% on month (vs -0.8% expected).
USD/JPY gained 36 pips to 147.44. This morning, Japan's data showed that machinery orders dropped 1.1% on month in July (vs -1.2% expected).
AUD/USD dipped 5 pips to 0.6421.
USD/CHF rose 19 pips to 0.8932, while USD/CAD was flat at 1.3553.
Bitcoin traded higher to 26,200.
Crude Oil (WTI) (V3) Intraday: consolidation in place.
Pivot:
89.20
Our preference:
Short positions below 89.20 with targets at 88.15 & 87.65 in extension.
Alternative scenario:
Above 89.20 look for further upside with 89.60 & 90.00 as targets.
Comment:
The RSI is below its neutrality area at 50%
EUR/USD Intraday: key resistance at 1.0760.
Pivot:
1.0760
Our preference:
Short positions below 1.0760 with targets at 1.0710 & 1.0690 in extension.
Alternative scenario:
Above 1.0760 look for further upside with 1.0780 & 1.0800 as targets.
Comment:
As long as 1.0760 is resistance, look for choppy price action with a bearish bias.
Bitcoin / Dollar intraday: as long as 25920 is support look for 26720
Our pivot point stands at 25920.
Our preference:
As long as 25920 is support look for 26720
Alternative scenario:
Below 25920, expect 25630 and 25460.
Comment:
The RSI is above 50. The MACD is positive and below its signal line. The price could retrace. Moreover, the price is above its 20 and 50 period moving average (respectively at 26188 and 26055).
Gold Intraday: look for 1902.00.
Pivot:
1915.00
Our preference:
Short positions below 1915.00 with targets at 1902.00 & 1896.00 in extension.
Alternative scenario:
Above 1915.00 look for further upside with 1919.00 & 1924.00 as targets.
Comment:
Technically the RSI is below its neutrality area at 50.
S&P 500 (CME) (U3) Intraday: key resistance at 4530.00.
Pivot:
4530.00
Our preference:
Short positions below 4530.00 with targets at 4501.00 & 4492.00 in extension.
Alternative scenario:
Above 4530.00 look for further upside with 4540.00 & 4552.00 as targets.
Comment:
The upward potential is likely to be limited by the resistance at 4530.00.
Tesla intraday: as long as 265.4 is support look for 283.6
Our pivot point stands at 265.4
Our preference:
As long as 265.4 is support look for 283.6
Alternative scenario:
The downside breakout of 265.4 would call for 258.6 and 254.4.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The price could retrace. Tesla is above its 20 and 50 period moving average (respectively at 270.48 and 266.9).
*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.
