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 Monday, U.S. stocks closed in positive territory. The Dow Jones Industrial Average jumped 407 points (1.16%) to 35,473, the biggest one-day gain since June 15. The S&P 500 rose 40 points (0.90%) to 4,518, and the Nasdaq 100 climbed 132 points (0.87%) to 15,407.
The U.S. 10-year Treasury yield rebounded 5.9 basis points to 4.093%.
Media (2.06%), consumer services (2.05%), and diversified financials (1.46%) stock sectors led the market higher, while technology hardware & equipment (-1.26%) and automobiles (-0.67%) sectors lagged behind.
U.S. Stock Highlights:
- Tesla (TSLA) declined 0.95% to $251.45. The electric-vehicle maker announced that Vaibhav Taneja will replace Zachary Kirkhorn as its finance chief.
- Apple (AAPL) fell 1.73% to $178.85 posting a five-session decline.
- Alphabet (GOOGL) rose 2.67% to $131.53.
- Berkshire Hathaway (BRK/B) climbed 3.60% to a record close of $362.58. The investment holding company under Warren Buffett reported an 8.2% on year surge in second-quarter operating profit to $10.04 billion.
- United Airlines (UAL) advanced 2.50% to $53.68.
- Boeing (BA) gained 2.98% to $238.25.
- Monster Beverage (MNST) jumped 6.13% to $58.49.
- Mercadolibre Inc (MELI) added 4.83% to $1,358.81.
- Booking Holdings (BKNG) was up 5.87% to $3,243.01.
European stocks closed mixed. The DAX 40 was little changed, the CAC 40 edged up 0.06%, and the FTSE 100 declined 0.13%.
U.S. WTI crude futures fell $0.88 to $81.94 a barrel.
Gold price slipped $6 to $1,936 an ounce.
Market Wrap: Forex
The U.S. dollar held up well against other major currencies, as Federal Reserve officials said additional interest-rate hikes are likely. The dollar index edged up to 102.10.
EUR/USD eased 4 pips to 1.1002. Germany's data showed that industrial production shrank 1.5% on month in June, worse than a reduction of 0.2% expected.
USD/JPY rebounded 70 pips to 142.46 halting a two-session decline.
GBP/USD rose 34 pips to 1.2783. The U.K. Halifax house price index dipped 0.3% on month in July (vs -0.6% expected).
AUD/USD added 5 pips to 0.6575. This morning, Australia's Westpac consumer confidence index declined slightly to 81.0 in August (vs 80.7 expected).
USD/CHF was little changed at 0.8729, while USD/CAD dipped 10 pips to 1.3369.
Bitcoin managed to hold at levels above $29,100.
Crude Oil (WTI) (Q3) Intraday: intraday support around 81.90.
Pivot:
81.90
Our preference:
Long positions above 81.90 with targets at 82.80 & 83.30 in extension.
Alternative scenario:
Below 81.90 look for further downside with 81.50 & 81.00 as targets.
Comment:
The next resistances are at 82.80 and then at 83.30.
EUR/USD Intraday: watch 1.1040.
Pivot:
1.0975
Our preference:
Long positions above 1.0975 with targets at 1.1020 & 1.1040 in extension.
Alternative scenario:
Below 1.0975 look for further downside with 1.0955 & 1.0935 as targets.
Comment:
The RSI calls for a bounce.
Bitcoin / Dollar intraday: our next up target stands at 29740
Our pivot point stands at 28720.
Our preference:
Our next up target stands at 29740
Alternative scenario:
The downside breakout of 28720 would call for 28340 and 28110.
Comment:
The RSI is above 50. The MACD is negative and above its signal line. The MACD must break above its zero level to trigger further gains. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 28987 and 29033).
Gold Intraday: range.
Pivot:
1942.00
Our preference:
Short positions below 1942.00 with targets at 1929.00 & 1924.00 in extension.
Alternative scenario:
Above 1942.00 look for further upside with 1946.00 & 1949.00 as targets.
Comment:
As long as 1942.00 is resistance, expect a return to 1929.00.
S&P 500 (CME) (U3) Intraday: bullish bias above 4521.00.
Pivot:
4521.00
Our preference:
Long positions above 4521.00 with targets at 4560.00 & 4580.00 in extension.
Alternative scenario:
Below 4521.00 look for further downside with 4494.00 & 4470.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
Tesla intraday: short term rebound towards 258.6
Our pivot point stands at 245.8
Our preference:
Short term rebound towards 258.6
Alternative scenario:
The downside breakout of 245.8 would call for 241.2 and 238.6.
Comment:
The RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Tesla stands below its 20 and 50 period moving average (respectively at 250.89 and 254.2).
*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.
