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 after the Federal Reserve's decision to raise interest rates by 25 basis points. The Dow Jones Industrial Average rose 82 points (+0.23%) to 35,520, extending its winning streak to a 13th session, the longest one since 1987.
The S&P 500 eased less than one point to 4,566, and the Nasdaq 100 closed 62 points lower (-0.4%) at 15,499.
As expected, the Fed raised its key interest rates by 25 basis points to 5.25%-5.50%, the highest levels since 2001. Fed Chairman Jerome Powell said the central bank would decide to either increase or hold interest rates on a "meeting-by-meeting" basis depending on data.
The U.S. 10-year Treasury yield ended 2 basis points lower at 3.865%.
Transportation (+2.96%), media (+2.95%), and Banks (+1.32%) stock sectors gained the most during the session, while software & services (-2.54%) and semiconductors (-1.35%) sectors closed lower.
Microsoft (MSFT) fell 3.76% as its Azure cloud-computing unit showed lower revenue growth.
Alphabet (GOOGL) jumped 5.78% on higher-than-expected second-quarter revenue and earnings.
Boeing (BA) surged 8.72%, and Wells Fargo (WFC) rose 2.11%, as both companies posted upbeat numbers in quarterly results.
Snap (SNAP) plunged 14.23%, and Texas Instruments (TXN) fell 5.42%, as investors were not satisfied with the companies' quarterly results.
PacWest Bancorp (PACW) bounced 26.92% after plunging 27% in the prior session.
In after-market hours, Meta Platforms (META) jumped 7% after the tech giant reported higher-than-expected second-quarter revenue and earnings, and issued optimistic third-quarter guidance.
European stocks closed lower. The DAX 40 fell 0.49%, the CAC 40 dropped 1.35%, and the FTSE 100 was down 0.19%.
U.S. WTI crude futures eased $0.70 to $78.95 a barrel. The U.S. Energy Department reported a reduction of 600,000 barrels in crude-oil stockpiles (vs -2.35 million barrels expected).
Gold price gained $7 to $1,972 an ounce.
Market Wrap: Forex
The U.S. dollar softened against other major currencies after the Fed announced a widely-expected rate hike. The dollar index declined to 101.00.
EUR/USD rose 32 pips to 1.1087. France's consumer confidence index was stable at 85 in July (as expected).
GBP/USD climbed 41 pips to 1.2943.
USD/JPY slid 56 pips to 140.34.
AUD/USD dropped 31 pips to 0.6761. Australia's data showed that the inflation rate slowed to 6.0% on year in the second quarter (vs 6.3% expected).
USD/CHF declined 30 pips to 0.8606, while USD/CAD added 31 pips to 1.3203.
Bitcoin rebounded up to $29,600.
Gold Intraday: supported by a rising trend line.
Pivot:
1965.00
Our preference:
Long positions above 1965.00 with targets at 1978.00 & 1983.00 in extension.
Alternative scenario:
Below 1965.00 look for further downside with 1959.00 & 1953.00 as targets.
Comment:
The RSI is mixed with a bullish bias.
Crude Oil (WTI) (Q3) Intraday: range
Pivot:
79.65
Our preference:
Short positions below 79.65 with targets at 78.30 & 77.80 in extension.
Alternative scenario:
Above 79.65 look for further upside with 80.50 & 81.20 as targets.
Comment:
The RSI is mixed with a bearish bias.
EUR/USD Intraday: the bias remains bullish.
Pivot:
1.1055
Our preference:
Long positions above 1.1055 with targets at 1.1105 & 1.1125 in extension.
Alternative scenario:
Below 1.1055 look for further downside with 1.1035 & 1.1020 as targets.
Comment:
Technically the RSI is above its neutrality area at 50.
Bitcoin / Dollar intraday: the upside prevails as long as 29010 is support
Our pivot point stands at 29010.
Our preference:
The upside prevails as long as 29010 is support
Alternative scenario:
Below 29010, expect 28600 and 28350.
Comment:
The RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 29270 and 29236).
S&P 500 (CME) (U3) Intraday: the bias remains bullish.
Pivot:
4590.00
Our preference:
Long positions above 4590.00 with targets at 4609.00 & 4615.00 in extension.
Alternative scenario:
Below 4590.00 look for further downside with 4579.00 & 4568.00 as targets.
Comment:
Technically the RSI is above its neutrality area at 50.
Tesla intraday: the downside prevails as long as 271.6 is resistance
Our pivot point stands at 271.6
Our preference:
The downside prevails as long as 271.6 is resistance
Alternative scenario:
Above 271.6, look for 279 and 283.2.
Comment:
The RSI is below 50. 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 265.91 and 265.57).
*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.
