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 Monday, U.S. stocks closed mixed as Treasury yields surged. The Dow Jones Industrial Average fell 74 points (-0.22%) to 33,433, while the S&P 500 was little changed at 4,288, and the Nasdaq 100 rose 122 points (+0.83%) to 14,837.
The small-cap stock index Russell 2000 declined 28 points (-1.58%) to 1,756, turning negative for the first time in 2023.
The U.S. 10-year Treasury Yield surged by 12 basis points to 4.691%, a fresh 16-year high.
Regarding U.S. economic data, the Institute for Supply Management (ISM) manufacturing index climbed to 49.0 in September (vs 48.1 expected).
Media (+1.83%), software & Services (+1.39%), and semiconductors (+1.33%) stock sectors were the top performers, while utilities (-4.72%), banks (-1.99%), and energy (-1.91%) sectors underperformed the market.
Nvidia (NVDA) jumped 2.95% after Goldman Sachs included the chipmaker into its conviction buy list.
Tesla (TSLA) managed to close 0.55% higher despite the electric-vehicle maker's lower-than-expected third-quarter deliveries.
Meanwhile, Rivian Automotive (RIVN) fell 2.55% though the electric-vehicle maker posted better-than-expected third-quarter deliveries.
Alphabet (GOOGL) climbed 2.53%, Meta Platforms (META) advanced 2.20%, Microsoft (MSFT) gained 1.92%, Amazon.com (AMZN) added 1.84%, and Apple (AAPL) was up 1.48%.
European stocks closed in the red. The DAX 40 fell 0.91%, the CAC 40 dropped 0.94%, and the FTSE 100 was down 1.28%.
U.S. WTI crude futures retreated a further $2.10 to $88.74 a barrel.
Gold price slid a further $20 to $1,828 an ounce.
Market Wrap: Forex
The U.S. dollar index rallied to 106.99 after posting three weeks of gains..
EUR/USD slid 91 pips to 1.0482, and GBP/USD sank 106 pips to 1.2093.
USD/JPY advanced 47 pips to 149.84. As the yen was close to the 150 per dollar mark, Japanese Finance Minister Shunichi Suzuki reiterated that the government was watching market moves with a strong sense of urgency.
A summary of opinions at the Bank of Japan's September policy meeting showed that more policymakers discussed the prospects of an eventual exit from ultra-loose policy.
AUD/USD fell 71 pips to 0.6364. Later today, Australia's central bank is expected to keep its key interest rate unchanged at 4.10%.
USD/CHF gained 27 pips to 0.9180, and USD/CAD climbed 98 pips to 1.3675.
Bitcoin once shot up to $28,600 before retreating to $27,500.
Crude Oil (WTI) (X3) Intraday: the downside prevails.
Pivot:
89.80
Our preference:
Short positions below 89.80 with targets at 87.70 & 87.00 in extension.
Alternative scenario:
Above 89.80 look for further upside with 90.60 & 91.70 as targets.
Comment:
The RSI has broken down its 30 level
EUR/USD Intraday: under pressure.
Pivot:
1.0510
Our preference:
Short positions below 1.0510 with targets at 1.0455 & 1.0430 in extension.
Alternative scenario:
Above 1.0510 look for further upside with 1.0530 & 1.0550 as targets.
Comment:
The RSI has broken down its 30 level.
Bitcoin / Dollar intraday: the downside prevails as long as 28140 is resistance
28140 is our pivot point.
Our preference:
The downside prevails as long as 28140 is resistance.
Alternative scenario:
The upside breakout of 28140, would call for 28460 and 28650.
Comment:
The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 28177 and 27996).
Gold Intraday: the downside prevails.
Pivot:
1834.00
Our preference:
Short positions below 1834.00 with targets at 1815.00 & 1805.00 in extension.
Alternative scenario:
Above 1834.00 look for further upside with 1842.00 & 1850.00 as targets.
Comment:
The RSI has broken down its 30 level.
S&P 500 (CME) (Z3) Intraday: bullish bias above 4308.00.
Pivot:
4308.00
Our preference:
Long positions above 4308.00 with targets at 4338.00 & 4355.00 in extension.
Alternative scenario:
Below 4308.00 look for further downside with 4295.00 & 4282.00 as targets.
Comment:
The next resistances are at 4338.00 and then at 4355.00.
Tesla intraday: as long as 245.2 is support look for 256.6
Our pivot point stands at 245.2.
Our preference:
As long as 245.2 is support look for 256.6.
Alternative scenario:
Below 245.2, expect 241.6 and 239.4.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The price could retrace. Tesla is trading under its 20 period moving average (249.74) but above its 50 period moving average (246.57).
*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.
