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 in positive territory as the S&P 500 rose 49 points (+1.11%) to 4,436, the Nasdaq 100 jumped 239 points (+1.6%) to 15,148 and the Dow Jones Industrial Average gained 184 points (+0.54%) to 34,472.
The Semiconductors & Semiconductor Equipment (+2.47%) and Media (+2.12%) sectors led the advance, while the Consumer Durables & Apparel (-0.79%) and Energy (-0.3%) sectors underperformed the most during the trading session.
NetFlix (NFLX), the video streaming service, rose 3.48% as the company continued to add new users in the U.S., according to research provided by Antenna, as the streaming giant cracks down on password sharing.
Foot Locker (FL), a global athletic footwear and apparel retailer, plunged 28.28% after cutting full-year guidance and pausing its dividend.
Urban Outfitters (URBN), the clothing retailer, rose 3.05% as quarterly earnings topped estimates.
Peloton Interactive (PTON), the interactive fitness platform, sank 22.6% after delivering disappointing revenue and adjusted EBITDA guidance for the current quarter.
On the U.S. economic data front, the S&P Global Manufacturing Purchasing Managers Index for August was reported at 47, below 49.5 expected, while the services PMI came in at 51.0, also below the 52.0 anticipated. Meanwhile, annualized new home sales for July were 714,000 units, above 686,000 units estimated.
The U.S. 10-year Treasury Yield dropped 13.6 basis points to 4.188%.
European stocks were broadly higher. The Dax 40 rose 0.15%, the Cac 40 gained 0.08% and the FTSE 100 climbed 0.68%.
WTI Crude Futures (October) fell $0.75 to $78.89. The U.S. Energy Information Administration reported that crude oil inventories dropped 6.14 million barrels in the week ending August 18, compared with an expected draw of 2.85 million barrels.
Spot gold rose $18 to $1,915, near a 2-week high, as weak U.S. PMIs eased rate hike expectations.
Market Wrap: Forex
The U.S. dollar index slipped 0.14% to 103.41.
EUR/USD added 16 pips to 1.0862. The eurozone's HCOB Manufacturing Purchasing Managers index improved to 43.7 in August, above 42.6 expected, while Services PMI declined to 48.3, below 50.7 estimated.
GBP/USD lost 16 pips to 1.2716. In the U.K., the S&P Global Manufacturing PMI fell to 42.5 in August, below 45.2 anticipated, and Services PMI was down to 48.7, below 50.5 expected.
USD/JPY slid 104 pips to 144.85 and USD/CHF dropped 24 pips to 0.8780.
AUD/USD rose 49 pips to 0.6472, while USD/CAD slid 13 pips to 1.3537. Canada's retail sales grew 0.1% on month in June, against a decline of 0.1% anticipated.
Bitcoin rebounded 2.9% to $26,545.
Crude Oil (WTI) (V3) Intraday: key resistance at 79.40.
Pivot:
79.40
Our preference:
Short positions below 79.40 with targets at 78.20 & 77.60 in extension.
Alternative scenario:
Above 79.40 look for further upside with 79.90 & 80.40 as targets.
Comment:
As long as the resistance at 79.40 is not surpassed, the risk of the break below 78.20 remains high.
EUR/USD Intraday: towards 1.0900.
Pivot:
1.0830
Our preference:
Long positions above 1.0830 with targets at 1.0880 & 1.0900 in extension.
Alternative scenario:
Below 1.0830 look for further downside with 1.0815 & 1.0800 as targets.
Comment:
The RSI advocates for further advance.
Bitcoin / Dollar intraday: the RSI is overbought
Our pivot point stands at 26300.
Our preference:
The upside prevails as long as 26300 is support.
Alternative scenario:
The downside breakout of 26300 would call for 26030 and 25880.
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 above its 20 and 50 period moving average (respectively at 26174 and 26042).
Gold Intraday: further upside.
Pivot:
1907.00
Our preference:
Long positions above 1907.00 with targets at 1924.00 & 1930.00 in extension.
Alternative scenario:
Below 1907.00 look for further downside with 1900.00 & 1895.00 as targets.
Comment:
The RSI calls for a new upleg.
S&P 500 (CME) (U3) Intraday: further advance.
Pivot:
4440.00
Our preference:
Long positions above 4440.00 with targets at 4500.00 & 4517.00 in extension.
Alternative scenario:
Below 4440.00 look for further downside with 4425.00 & 4394.00 as targets.
Comment:
The next resistances are at 4500.00 and then at 4517.00.
Tesla intraday: the upside prevails as long as 235.4 is support
Our pivot point stands at 235.4
Our preference:
The upside prevails as long as 235.4 is support
Alternative scenario:
The downside breakout of 235.4 would call for 233 and 231.6.
Comment:
The RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Tesla is trading above both its 20 and 50 period moving average (respectively at 234.82 and 228.96).
*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.
