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 fell sharply pushing the major stock indexes to their lowest closing levels in over three months. The Dow Jones Industrial Average slid 388 points (-1.14%) to 33,618, the biggest one-day percentage drop since March.
The S&P 500 dropped 63 points (-1.47%) to 4,273, and the Nasdaq 100 sank 223 points (-1.51%) to 14,545.
The U.S. 10-year Treasury yield added 1.7 basis points, reaching 4.550%, a fresh 16-year high.
Regarding U.S. economic data, new home sales dropped 8.7% on month to an annualized rate of 675,000 units in August (vs 700,000 units expected). The Conference Board's consumer confidence index declined to 103 in September (vs 105.5 expected).
Adding to bearish sentiment was JPMorgan Chase CEO Jamie Dimon's comment that interest rates may have to rise further to fight inflation.
All sectors in the S&P 500 ended the day in negative territory, with utilities (3.05%), retailing (-2.94%) and technology hardware & equipment (-2.20%) stock sectors losing the most.
Amazon.com (AMZN) lost 4.03% after the U.S. Federal Trade Commission (FTC) filed an antirust lawsuit accusing the world's largest online retailer of overcharging customers.
Tesla (TSLA) fell 1.16% on news that the European Union is investigating the electric-vehicle maker may benefit from unfair subsidies in China.
At the same time, Apple (AAPL) dropped 2.34%, Alphabet (GOOGL) slipped 1.94%, and Microsoft (MSFT) was down 1.70%.
In Europe, the DAX 40 declined 0.97%, the CAC 40 slid 0.70%, while the FTSE 100 was relatively flat at close.
U.S. WTI crude futures gained $1.00 to $90.66 a barrel.
Gold price sank $15 to $1,900 an ounce.
Market Wrap: Forex
The U.S. dollar continued to strengthen against other major currencies, with the dollar index climbing to 106.17, the highest level since November.
USD/JPY advanced 17 pips to 149.05, an 11-month high. Japanese Finance Minister Shunichi Suzuki said the government was "watching currency moves with a high sense of urgency".
EUR/USD fell 20 pips to 1.0573, and GBP/USD dropped 53 pips to 1.2158.
AUD/USD was down 26 pips to 0.6398.
USD/CHF gained 36 pips, closing at 0.9156.
USD/CAD rose 63 pips to 1.3517. Canada's data showed that manufacturing sales grew 1.0% on month in August (vs +0.7% expected).
Bitcoin was only slightly lower at $26,200.
Crude Oil (WTI) (X3) Intraday: the upside prevails.
Pivot:
89.85
Our preference:
Long positions above 89.85 with targets at 91.30 & 91.90 in extension.
Alternative scenario:
Below 89.85 look for further downside with 89.35 & 88.75 as targets.
Comment:
The RSI shows upside momentum.
EUR/USD Intraday: expect 1.0540.
Pivot:
1.0595
Our preference:
Short positions below 1.0595 with targets at 1.0555 & 1.0540 in extension.
Alternative scenario:
Above 1.0595 look for further upside with 1.0610 & 1.0625 as targets.
Comment:
The RSI advocates for further decline.
Bitcoin / Dollar intraday: rebound
25960 is our pivot point.
Our preference:
Rebound.
Alternative scenario:
Below 25960, expect 25660 and 25480.
Comment:
The RSI is above its neutrality area at 50. The MACD is above its signal line and negative. The MACD must break above its zero level to call for further upside. Moreover, the price is trading above its 20 period moving average (26198) but under its 50 period moving average (26261).
Gold Intraday: aim @ 1890.00.
Pivot:
1909.00
Our preference:
Short positions below 1909.00 with targets at 1896.00 & 1890.00 in extension.
Alternative scenario:
Above 1909.00 look for further upside with 1915.00 & 1920.00 as targets.
Comment:
As long as the resistance at 1909.00 is not surpassed, the risk of the break below 1896.00 remains high.
S&P 500 (CME) (Z3) Intraday: key resistance at 4325.00.
Pivot:
4325.00
Our preference:
Short positions below 4325.00 with targets at 4303.00 & 4290.00 in extension.
Alternative scenario:
Above 4325.00 look for further upside with 4338.00 & 4353.00 as targets.
Comment:
As long as 4325.00 is resistance, likely decline to 4303.00.
Tesla intraday: short term rebound towards 256.4
Our pivot point stands at 239
Our preference:
Short term rebound towards 256.4.
Alternative scenario:
Below 239, expect 232.6 and 228.8.
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 245.67 and 249.28).
*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.
