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 Tuesday, U.S. stocks ended in negative territory, as sentiment was impacted by Moody's downgrading credit ratings of 10 small and mid-sized U.S. banks. The Dow Jones Industrial Average fell 158 points (0.45%) to 35,314, the S&P 500 dropped 19 points (0.42%) to 4,499, and the Nasdaq 100 was down 134 points (0.87%) to 15,273.
The U.S. 10-year Treasury yield retreated 6.7 basis points to 4.022%.
Semiconductors (-1.61%), health-care equipment & services (-1.32%), and insurance (-1.2%) stock sectors lost the most.
Moody's cut the credit ratings of 10 small and mid-sized U.S. banks, while placing some major banks, including Bank of New York Mellon (BK, -1.32% to $45.72), State Street (STT, -1.58% to $72.73) and U.S. Bancorp (USB, -0.27% to $40.23), under review for a potential downgraded.
Nvidia (NVDA) fell 1.66% to $446.64, Amazon.com (AMZN) dropped 1.60% to $139.94, Microsoft (MSFT) declined 1.23% to $326.05, and Tesla (TSLA) was down 0.70% to $249.70.
Meanwhile, Apple (AAPL) gained 0.53% to $179.80.
Eli Lilly (LLY) surged 14.87% to $521.60. The pharmaceutical developer raised its sales forecast.
Beyond Meat (BYND) plunged 14.27% to $13.10, and International Flavors & Fragrances (IFF) tumbled 19.37% to $64.78. Both companies posted lower-than-expected quarterly sales.
Palantir Technologies (PLTR) fell 5.28% to $17.04. The data mining company gave a down-beat full-year revenue forecast.
European stocks came under pressure after Italy's government introduced a one-off 40% windfall tax on local banks. The DAX 40 fell 1.10%, the CAC 40 dropped 0.69%, and the FTSE 100 was down 0.36%.
U.S. WTI crude futures gained $0.90 to $82.8 a barrel.
Gold price sank $11 to $1,925 an ounce.
Market Wrap: Forex
The U.S. dollar strengthened against other major currencies. The dollar index climbed to 102.55.
AUD/USD fell 32 pips to 0.6541. China -- Australia's biggest trading partner -- reported that exports dropped 14.5% on year in July (vs -14.0% expected), the biggest decline since the outset of the coronavirus pandemic in February 2020, and imports were down 12.4% (vs -5.2% expected).
Later today, China is expected to report that its inflation rate slipped into a deflation reading of negative -0.3% on year in July.
EUR/USD slid 46 pips to 1.0956, GBP/USD dropped 39 pips to 1.2745.
USD/JPY climbed 92 pips to 143.42, up for a second session.
USD/CHF gained 28 pips to 0.8756, and USD/CAD added 52 pips to 1.3422.
Bitcoin posted a strong run overnight, jumping up to $30,200 before retreating to $29,800.
Crude Oil (WTI) (Q3) Intraday: expect 84.30.
Pivot:
81.90
Our preference:
Long positions above 81.90 with targets at 83.30 & 84.30 in extension.
Alternative scenario:
Below 81.90 look for further downside with 80.85 & 79.90 as targets.
Comment:
The RSI is mixed with a bullish bias.
EUR/USD Intraday: key resistance at 1.0980.
Pivot:
1.0980
Our preference:
Short positions below 1.0980 with targets at 1.0930 & 1.0910 in extension.
Alternative scenario:
Above 1.0980 look for further upside with 1.1000 & 1.1015 as targets.
Comment:
As long as the resistance at 1.0980 is not surpassed, the risk of the break below 1.0930 remains high.
Bitcoin / Dollar intraday: the RSI is overbought
Our pivot point stands at 29580.
Our preference:
The upside prevails as long as 29580 is support.
Alternative scenario:
Below 29580, expect 29250 and 29050.
Comment:
The RSI is trading above 70. This could mean that either the price is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). 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 29558 and 29320).
Gold Intraday: the downside prevails.
Pivot:
1932.00
Our preference:
Short positions below 1932.00 with targets at 1920.00 & 1915.00 in extension.
Alternative scenario:
Above 1932.00 look for further upside with 1937.00 & 1942.00 as targets.
Comment:
The RSI calls for a new downleg.
S&P 500 (CME) (U3) Intraday: the upside prevails.
Pivot:
4498.00
Our preference:
Long positions above 4498.00 with targets at 4528.00 & 4542.00 in extension.
Alternative scenario:
Below 4498.00 look for further downside with 4482.00 & 4461.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
Tesla intraday: short term rebound towards 258.4
Our pivot point stands at 245.8
Our preference:
Short term rebound towards 258.4
Alternative scenario:
The downside breakout of 245.8 would call for 241.2 and 238.4.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Tesla stands above its 20 period moving average (248.83) but below its 50 period moving average (252.83).
*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.
