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, major U.S. stock indexes closed mixed. The Dow Jones Industrial Average regained the level of 35,000 as it rose 109 points (+0.31%) to 35,061. The S&P 500 gained 10 points (+0.24%) to 4,565, while the Nasdaq 100 was down 15 points (-0.09%) to 15,826.
Telecom services (+4.75%), banks (+1.70%), and retailing (+1.35%) stock sectors were the top performers, while semiconductors (-0.78%), software & services (-0.76%), and automobiles (-0.56%) sectors underperformed the market.
Apple (AAPL) rose 0.71% to $195.10, a record close. According to Bloomberg, the tech giant is developing a generative artificial intelligence tool to rival OpenAI's ChatGPT and Google's Bard.
Broadcom (AVGO), a semiconductor developer, was approved by U.K. authorities to acquire cloud-computing firm VMware (VMW). Broadcom (AVGO) dipped 0.23%, while VMware (VMW) closed 5.18% higher.
Carvana (CVNA) surged 40.20%. The used-car retailer said it has reached a deal with bond-holders to reduce debt.
Interactive Brokers Group (IBKR) fell 4.98%. The online financial-market broker posted worse-than-expected second-quarter earnings.
Tesla (TSLA) fell 0.71% during the session. The stock sank a further 4% in after-market hours after the electric-vehicle maker reported second-quarter results. Although quarterly revenue rose to a record level, operating margins declined due to price cuts and incentives.
The U.S. 10-year Treasury yield fell a further 3.9 basis points to 3.746%.
U.S. data showed that the number of housing starts dropped to an annualized rate of 1.43 million units (vs 1.47 million units expected).
In Europe, the DAX 40 declined 0.10%, while the CAC 40 rose 0.11%, and the FTSE 100 gained 1.80%.
U.S. WTI crude futures eased $0.40 to $75.35 a barrel. The U.S. Energy Department reported a reduction of 708,000 barrels in crude-oil stockpiles (vs a reduction of 2.44 million barrels expected).
Gold price was little changed at $1,977 an ounce.
Market Wrap: Forex
The U.S. dollar index regained the level of 100 after the pound was dragged by lower-than-expected U.K. inflation.
GBP/USD fell 100 pips to 1.2936. U.K. inflation rate slowed to 7.9% on year in June (vs 8.3% expected, 8.7% in May), the lowest level in over a year. This should ease pressure on the Bank of England to keep hiking interest rates sharply.
EUR/USD dropped 28 pips to 1.1201.
USD/JPY gained 90 pips to 139.73. This morning, Japan's data showed a trade surplus of 43 billion yen in June, the first trade surplus in 23 months, with exports rising 1.5% on year.
AUD/USD slipped 37 pips to 0.6774.
USD/CHF added 9 pips to 0.8586, while USD/CAD edged down 4 pips to 1.3165.
Bitcoin continued to struggle at levels around $30,000.
Gold Intraday: bullish bias above 1969.00.
Pivot:
1969.00
Our preference:
Long positions above 1969.00 with targets at 1984.00 & 1990.00 in extension.
Alternative scenario:
Below 1969.00 look for further downside with 1962.00 & 1955.00 as targets.
Comment:
The RSI is mixed with a bullish bias.
Crude Oil (WTI) (Q3) Intraday: the downside prevails.
Pivot:
76.05
Our preference:
Short positions below 76.05 with targets at 74.60 & 73.80 in extension.
Alternative scenario:
Above 76.05 look for further upside with 76.70 & 77.15 as targets.
Comment:
The RSI is bearish and calls for further decline.
EUR/USD Intraday: the downside prevails.
Pivot:
1.1220
Our preference:
Short positions below 1.1220 with targets at 1.1180 & 1.1165 in extension.
Alternative scenario:
Above 1.1220 look for further upside with 1.1235 & 1.1255 as targets.
Comment:
The RSI calls for a new downleg.
Bitcoin / Dollar intraday: the downside prevails as long as 30250 is resistance
Our pivot point stands at 30250.
Our preference:
The downside prevails as long as 30250 is resistance
Alternative scenario:
The upside breakout of 30250, would call for 30670 and 30920.
Comment:
The RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 29945 and 29981).
S&P 500 (CME) (U3) Intraday: intraday support around 4565.00.
Pivot:
4565.00
Our preference:
Long positions above 4565.00 with targets at 4610.00 & 4625.00 in extension.
Alternative scenario:
Below 4565.00 look for further downside with 4545.00 & 4528.00 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Tesla intraday: target 281.8
Our pivot point stands at 295.8
Our preference:
Target 281.8
Alternative scenario:
The upside breakout of 295.8, would call for 301 and 304.
Comment:
The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Tesla is trading under its 20 period moving average (293.71) but above its 50 period moving average (289.13).
*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.
