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 Friday, U.S. stock markets closed mixed. The Dow Jones Industrial Average rose 115 points (+0.33%) to 34,837, the S&P 500 gained 8 points (+0.18%) to 4,515, while the Nasdaq 100 dipped 10 points (-0.07%) to 15,490.
On a weekly basis, the S&P 500 climbed 2.50%, and the Nasdaq 100 advanced 3.67%.
U.S. data showed that the economy added 187,000 nonfarm payrolls in August (vs +180,000 expected), while the jobless rate rose to 3.8% (vs 3.5% expected), and average hourly earnings increased 0.2% on month (vs +0.4% expected).
The Institute for Supply Management (ISM) manufacturing purchasing managers index rose to 47.6 in August (vs 47.0 expected).
The US 10-year Treasury Yield rose by 6.7 basis points to 4.175%.
Energy (+2.05%), materials (+1.01%), and consumer durables & apparel (+0.95%) were the top-performing stock sectors, while automobiles (-4.14%) and food & staples retailing (-1.20%) sectors underperformed.
Tesla (TSLA) fell 5.06% to $245.01. The electric-vehicle maker cut prices of its Model S and Model X vehicles in the U.S. and China.
Walt Disney (DIS) and Charter Communications (CHTR) were in a dispute over their distribution agreement. Walt Disney (DIS) dropped 2.44%, and Charter Communications (CHTR) slid 3.61%.
Dell Technologies (DELL) surged 21.25% to $68.19, and Lululemon Athletica (LULU) climbed 6.01% to $404.19, as both companies reported better-than-expected quarterly results.
Broadcom (AVGO) declined 5.46% to $872.52. The semiconductor developer issued softer-than-expected sales guidance for the current quarter.
On Monday (September 4) U.S. and Canada markets will be closed for Labor Day holiday.
European stocks also closed mixed. The DAX 40 fell 0.67%, the Cac 40 dropped 0.27%, while the FTSE 100 gained 0.34%.
U.S. WTI crude futures climbed $2.30 to $85.90 a barrel.
Gold price was little changed at $1,940 an ounce.
Market Wrap: Forex
The U.S. dollar index advanced further to 104.25.
EUR/USD fell 66 pips to 1.0777.
USD/JPY rose 63 pips to 146.17.
GBP/USD dropped 84 pips to 1.2589. In the U.K., the Nationwide house price index dropped 0.8% on the month in August (vs -0.2% expected).
AUD/USD slipped 33 pips to 0.6451.
USD/CHF climbed 23 pips to 0.8857.
USD/CAD was up 89 pips to 1.3597. Canada's data showed that the gross domestic product shrank at an annualized rate of 0.2% on quarter in the second quarter (vs +1.0% expected).
USD/CNH (offshore yuan) declined 50 pips to 7.2700. China's central bank cut the amount of foreign exchange that banks must hold as reserves.
Bitcoin traded down to $25,650, but regained the $26,000 level over the weekend. The U.S. Securities and Exchange Commission (SEC) delayed a decision on whether to approve applications for spot bitcoin exchange-traded funds (ETF) from various financial firms, including BlackRock and Fidelity.
Crude Oil (WTI) (V3) Intraday: further advance.
Pivot:
84.60
Our preference:
Long positions above 84.60 with targets at 87.00 & 88.00 in extension.
Alternative scenario:
Below 84.60 look for further downside with 84.00 & 83.30 as targets.
Comment:
The next resistances are at 87.00 and then at 88.00.
EUR/USD Intraday: under pressure.
Pivot:
1.0810
Our preference:
Short positions below 1.0810 with targets at 1.0750 & 1.0720 in extension.
Alternative scenario:
Above 1.0810 look for further upside with 1.0830 & 1.0850 as targets.
Comment:
The RSI is bearish and calls for further decline.
Bitcoin / Dollar intraday: above its upper Bollinger band
Our pivot point stands at 25750.
Our preference:
The upside prevails as long as 25750 is support.
Alternative scenario:
The downside breakout of 25750 would call for 25500 and 25340.
Comment:
The RSI is above its neutrality area at 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 25906 and 25888). Finally, the Bitcoin / Dollar is trading above its upper Bollinger band (standing at 25979).
Gold Intraday: key resistance at 1946.00.
Pivot:
1946.00
Our preference:
Short positions below 1946.00 with targets at 1934.00 & 1927.00 in extension.
Alternative scenario:
Above 1946.00 look for further upside with 1953.00 & 1960.00 as targets.
Comment:
As long as the resistance at 1946.00 is not surpassed, the risk of the break below 1934.00 remains high.
S&P 500 (CME) (U3) Intraday: consolidation.
Pivot:
4530.00
Our preference:
Short positions below 4530.00 with targets at 4496.00 & 4485.00 in extension.
Alternative scenario:
Above 4530.00 look for further upside with 4550.00 & 4580.00 as targets.
Comment:
Technically the RSI is below its neutrality area at 50.
Tesla intraday: the downside prevails as long as 249 is resistance
Our pivot point stands at 249
Our preference:
The downside prevails as long as 249 is resistance
Alternative scenario:
Above 249, look for 254.6 and 258.
Comment:
The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Tesla stands below its 20 and 50 period moving average (respectively at 250.79 and 254.21).
*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.
