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 rebounded following a sharp sell-off in the prior session. The Dow Jones Industrial Average rose 127 points (+0.39%) to 33,129, the S&P 500 climbed 34 points (+0.81%) to 4,263, and the Nasdaq 100 jumped 210 points (+1.45%) to 14,776.
The ADP jobs report showed that the U.S. economy added only 89,000 private jobs in September (vs +160,000 expected).
The Institute for Supply Management (ISM) services index dropped to 53.6 in September (vs 53.7 expected), while factory orders grew 1.2% on month in August (vs +0.3% expected).
The U.S. 10-year Treasury yield retreated 6.5 basis points to 4.731%.
Automobiles (+4.98%), software & services (+1.7%), and media (+1.48%) stock sectors gained the most, while energy (-3.36%) and telecoms services (-0.62%) sectors were under pressure.
Tesla (TSLA) rebounded 5.93%, and Rivian Automotive (RIVN) jumped 9.22%.
Carnival (CCL) rose 2.75%.
RPM International (RPM), a maker of specialty chemical products, gained 6.26% on upbeat first-quarter results.
On the other hand, energy stocks were weighed down by falling oil prices. Marathon Oil (MRO) dropped 4.98%, and Occidental Petroleum (OXY) slid 3.87%.
European stock markets closed mixed. The DAX 40 added 0.10%, while the CAC 40 closed flat, and the FTSE 100 was down 0.77%.
Oil prices fell sharply on signs that fuel demand in the U.S. declined. U.S. WTI crude futures plunged $5.01 (-5.60%) to $84.22 a barrel, and Brent crude futures sank $5.11 (-5.60%) to $85.81 a barrel.
The U.S. Energy Department reported that crude-oil stockpiles dropped 2.22 million barrels (vs -0.45 million barrels expected), but gasoline stockpiles surged 6.5 million barrels (vs +0.16 million barrels expected).
Gold price dipped a further $2 to $1,820 an ounce.
Market Wrap: Forex
The U.S. dollar softened against other major currencies. The dollar index eased to 106.76.
EUR/USD gained 39 pips to 1.0506. In the Eurozone, retail sales declined 1.2% on month in August (vs -0.1% expected), while producer prices fell 11.5% on year in August (vs -11.6% expected).
USD/JPY added 9 pips to 149.11. Market participants reported that there were no signs of Japanese authorities intervening in the forex market.
GBP/USD climbed 62 pips to 1.2139.
AUD/USD increased 24 pips to 0.6326. This morning, Australia's data showed that trade surplus widened to A$9.64 billion in August (vs A$8.50 billion expected).
USD/CHF fell 40 pips to 0.9170.
The Canadian dollar was dragged by plunging oil prices. USD/CAD climbed 36 pips to reach 1.3744.
Bitcoin gained 1.3% to $27,780.
Crude Oil (WTI) (X3) Intraday: the downside prevails.
Pivot:
85.50
Our preference:
Short positions below 85.50 with targets at 83.50 & 82.45 in extension.
Alternative scenario:
Above 85.50 look for further upside with 86.90 & 87.80 as targets.
Comment:
The RSI has broken down its 30 level.
EUR/USD Intraday: bullish bias above 1.0480.
Pivot:
1.0480
Our preference:
Long positions above 1.0480 with targets at 1.0530 & 1.0545 in extension.
Alternative scenario:
Below 1.0480 look for further downside with 1.0465 & 1.0450 as targets.
Comment:
The RSI calls for a bounce.
Bitcoin / Dollar intraday: the upside prevails as long as 27510 is support
Our pivot point stands at 27510.
Our preference:
The upside prevails as long as 27510 is support.
Alternative scenario:
Below 27510, expect 27180 and 26980.
Comment:
The RSI is above 50. 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 27623 and 27521).
Gold Intraday: intraday support around 1815.00.
Pivot:
1815.00
Our preference:
Long positions above 1815.00 with targets at 1827.00 & 1833.00 in extension.
Alternative scenario:
Below 1815.00 look for further downside with 1810.00 & 1805.00 as targets.
Comment:
A support base at 1815.00 has formed and has allowed for a temporary stabilisation.
S&P 500 (CME) (Z3) Intraday: intraday support around 4275.00.
Pivot:
4275.00
Our preference:
Long positions above 4275.00 with targets at 4315.00 & 4335.00 in extension.
Alternative scenario:
Below 4275.00 look for further downside with 4254.00 & 4235.00 as targets.
Comment:
The next resistances are at 4315.00 and then at 4335.00.
Tesla intraday: the upside prevails as long as 254.4 is support
Our pivot point stands at 254.4.
Our preference:
The upside prevails as long as 254.4 is support.
Alternative scenario:
The downside breakout of 254.4 would call for 249.6 and 246.8.
Comment:
The RSI is above 70. It could mean either that prices are in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Tesla is trading above both its 20 and 50 period moving average (respectively at 252.67 and 250.83).
*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.
