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, U.S. stocks closed lower as the S&P 500 recorded losses of 33 points (-0.76%) to 4,404, the Nasdaq 100 dropped 161 points (-1.07%) to 14,876 and the Dow Jones Industrial Average declined 180 points (-0.52%) to 34,765.
the Automobiles & Components (-2.88%) and Semiconductors & Semiconductor Equipment (-1.63%) sectors led the decline, while the Insurance (+1.37%), Utilities (+0.46%) sectors outperformed.
Tesla (TSLA), the electric-vehicle maker, fell 3.16% as the company cut prices in China for the second time in three days.
Intel (INTC), a designer and manufacturer of microprocessors, dropped 3.57% as it mutually agreed with Tower Semiconductor (TSEM) to terminate its previously disclosed agreement to acquire Tower due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement.
In earnings news, Target (TGT), a leading general merchandise discount retailer, rose 2.96% as second-quarter adjusted EPS topped estimates. Agilent Technologies (A), an international life sciences and diagnostics company, fell 3.41% after slashing full year adjusted EPS and sales guidance. H&R Block (HRB), a provider of tax return services, climbed 9.7% as quarterly earnings topped estimates.
On the U.S. economic data front, the Federal Reserve's latest FOMC meeting minutes showed that "most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy". Meanwhile, annualized housing starts for July were announced at 1.45 million units, as expected, while building permits came in at 1.44 million units, below 1.46 million units estimated. Also, industrial production grew 1.0% on month in July, above 0.2% forecasted.
The U.S. 10-year Treasury Yield gained 5.1 basis points to 4.262%, up for a fifth straight session.
European stocks were mixed, as the Dax 40 rose 0.14%, while the Cac 40 fell 0.10% and the FTSE 100 was down 0.44%.
WTI Crude Futures (September) dropped $1.61 to $79.38, posting a 3-day decline. The U.S. Energy Information Administration reported that crude oil inventories slid 5.96 million barrels in the week ending August 11, compared with an expected draw of 2.32 million barrels.
Spot gold was down $9 to $1,893, its lowest level since March.
Market Wrap: Forex
The U.S. dollar index gained 0.2% to 103.43.
EUR/USD fell 28 pips to 1.0877. The eurozone's second estimate of second quarter gross domestic product was up 0.6% on year as anticipated, while industrial production grew 0.5% on month in June, vs -0.3% expected.
GBP/USD rose 19 pips to 1.2724. U.K. consumer price index rose 6.8% on year in July, below 6.9% expected and 7.9% in June.
USD/JPY jumped 76 pips to 146.33 and USD/CHF added 17 pips to 0.8802.
AUD/USD slid 34 pips to 0.6421. Later today, Australia's employment is expected to increase by 25,100 in July, while jobless rate is anticipated to be steady at 3.5%.
USD/CAD increased 38 pips to 1.3536. Canada's annualized housing starts totaled 255,000 units in July, above 243,000 units expected.
Bitcoin fell to $28,969.
Crude Oil (WTI) (U3) Intraday: the downside prevails.
Pivot:
79.95
Our preference:
Short positions below 79.95 with targets at 78.65 & 78.30 in extension.
Alternative scenario:
Above 79.95 look for further upside with 80.45 & 81.30 as targets.
Comment:
The RSI has broken down its 30 level.
EUR/USD Intraday: the downside prevails.
Pivot:
1.0910
Our preference:
Short positions below 1.0910 with targets at 1.0850 & 1.0825 in extension.
Alternative scenario:
Above 1.0910 look for further upside with 1.0930 & 1.0950 as targets.
Comment:
The RSI advocates for further decline.
Bitcoin / Dollar intraday: rebound towards 29650
Our pivot point stands at 28850.
Our preference:
Rebound towards 29650
Alternative scenario:
Below 28850, expect 28550 and 28370.
Comment:
The RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price stands above its 20 period moving average (29102) but below its 50 period moving average (29143).
Gold Intraday: the downside prevails.
Pivot:
1901.00
Our preference:
Short positions below 1901.00 with targets at 1886.00 & 1880.00 in extension.
Alternative scenario:
Above 1901.00 look for further upside with 1906.00 & 1911.00 as targets.
Comment:
The RSI is bearish and calls for further decline.
S&P 500 (CME) (U3) Intraday: key resistance at 4442.00.
Pivot:
4442.00
Our preference:
Short positions below 4442.00 with targets at 4402.00 & 4385.00 in extension.
Alternative scenario:
Above 4442.00 look for further upside with 4465.00 & 4491.00 as targets.
Comment:
A break below 4402.00 would trigger a drop towards 4385.00.
Tesla intraday: short term rebound towards 232.6
Our pivot point stands at 224.6
Our preference:
Short term rebound towards 232.6
Alternative scenario:
The downside breakout of 224.6 would call for 221.8 and 220.2.
Comment:
The RSI is trading below 30. This could mean that either prices are in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and above its signal line. The configuration is mixed. Tesla is trading under both its 20 and 50 period moving average (respectively at 230.45 and 235.57).
*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.
