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 Thursday, U.S. stocks closed sharply higher. The Dow Jones Industrial Average rose 331 points (+0.96%) to 34,907, the S&P 500 climbed 37 points (+0.84%) to 4,505, and the Nasdaq 100 was up 125 points (+0.82%) to 15,473.
U.S. data showed that retail sales climbed 0.6% on month in August (vs +0.4% expected), and producer prices increased 1.6% on year in August (vs +1.3% expected).
And the latest number of initial jobless claims climbed to 220,000 (vs 221,000 expected).
The U.S. 10-year Treasury yield gained 3.6 basis points to 4.284%.
Real Estate (+1.82%), banks (+1.79%), and automobiles (+1.5%) stock sectors were the top performers during the trading session.
Walt Disney (DIS) rose 1.20% and Nexstar Broadcasting (NXST) gained 5.51%, on reports that Disney was negotiating the sale of its ABC network to Nexstar. However, in after-market hours, Disney said there was no decision on selling ABC.
Carvana (CVNA), a used car platform, jumped 13.47%, and CarMax (KMX), a car and light truck retail chain, climbed 4.11%. The United Auto Workers union said they would strike at three major car-makers - Ford Motor, General Motors, and Stellantis - if no deal is reached.
European stocks also closed higher. The DAX 40 rose 0.97%, the CAC 40 gained 1.19%, and the FTSE 100 was up 1.95%.
U.S. WTI crude futures added $2.30 to $90.78 a barrel, the highest level this year.
Gold price edged up $2 to $1,910.
Market Wrap: Forex
The U.S. dollar strengthened against other major currencies. The dollar index advanced to 105.33.
EUR/USD dropped 87 pips to 1.0643. As expected, the European Central Bank raised its key interest rate by 25 basis points to a record high of 4.00%. However, the central bank hinted that this latest increase would be its last.
USD/JPY edged down 3 pips to 147.43.
GBP/USD slid 80 pips to 1.2410. In the U.K., the Royal Institute of Chartered Surveyors (RICS) house price index sank to -68% in August (vs -55% expected).
AUD/USD gained 19 pips to 0.6441. Australia's data showed that the economy added 64,900 jobs in August (vs +40,000 expected), while the jobless rate remained steady at 3.7% (vs 3.6% expected).
USD/CHF increased 18 pips to 0.8955, while USD/CAD dropped 42 pips to 1.3507.
Bitcoin traded higher to $26,600.
Crude Oil (WTI) (V3) Intraday: the upside prevails.
Pivot:
89.60
Our preference:
Long positions above 89.60 with targets at 91.10 & 91.70 in extension.
Alternative scenario:
Below 89.60 look for further downside with 88.90 & 88.30 as targets.
Comment:
The RSI is bullish and calls for further advance.
EUR/USD Intraday: the downside prevails.
Pivot:
1.0690
Our preference:
Short positions below 1.0690 with targets at 1.0600 & 1.0565 in extension.
Alternative scenario:
Above 1.0690 look for further upside with 1.0720 & 1.0750 as targets.
Comment:
The RSI has broken down its 30 level.
Bitcoin / Dollar intraday: as long as 26370 is support look for 27180
Our pivot point stands at 26370.
Our preference:
As long as 26370 is support look for 27180
Alternative scenario:
The downside breakout of 26370 would call for 26070 and 25900.
Comment:
The RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The price could retrace. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 26575 and 26383).
Gold Intraday: rebound in sight.
Pivot:
1902.00
Our preference:
Long positions above 1902.00 with targets at 1915.00 & 1920.00 in extension.
Alternative scenario:
Below 1902.00 look for further downside with 1898.00 & 1893.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
S&P 500 (CME) (U3) Intraday: the upside prevails.
Pivot:
4544.00
Our preference:
Long positions above 4544.00 with targets at 4568.00 & 4580.00 in extension.
Alternative scenario:
Below 4544.00 look for further downside with 4532.00 & 4524.00 as targets.
Comment:
The RSI calls for a new upleg.
Tesla intraday: the upside prevails as long as 269 is support
Our pivot point stands at 269
Our preference:
The upside prevails as long as 269 is support
Alternative scenario:
Below 269, expect 261 and 256.2.
Comment:
The RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Tesla is above its 20 and 50 period moving average (respectively at 273.85 and 272.39).
*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.
