2020-08-10 • Updated
It has been climbing up for the 9th day in a row. Look for trade ideas.
Let’s start with the fundamentals. It’s a common fact that the S&P 500 is a so called benchmark of the US economy. Thus, when the US economy gets under threat, the S&P 500 tends to dip down. As you might know, US-China trade talks are scheduled for this week. This agreement is widely watched by all the market participants, as it will impact the overall sentiment.
Today Bloomberg reported that China imposed sanctions on US officials in reply to the US actions over Hong Kong's leader Carrie Lam. It definitely adds more pressure on the Sino-Americans tensions. However, investors shrugged off that news and continue buying the S&P 500. Maybe this year is so filled with negative news that people’s reaction has weakened.
Another reason, which may weigh on the US economy, is disputes between Democrats and Republicans over the fiscal stimulus package. The US president Donald Trump made executive orders to speed up their agreement. However, discussions continue. And, again, it seems it doesn’t bother investors so much.
According to Chris Harvey, head of equity strategy at Wells Fargo Securities, one thing still can stop the S&P 500’s rally. It is negative interest rates, which officials may impose again. Wells Fargo Securities set the price target at 3 388 for the S&P 500. Harvey claimed that the stock index may reach this level before further contraction as elections in November may add headwinds.
Some analysts believe that the Federal Reserve is interested in depreciating the US dollar. Therefore, multinational corporations will get a boost as people will try to escape from the currency, which is losing its value every day. So, the S&P 500 should gain on that.
The S&P 500 is approaching the all-time high at 3 390. All the moving averages are in descending order, that indicates a really strong uptrend. If the price goes above 3 390, it will surge to the key psychological mark at 3 500. Nevertheless, the move below the low of August 7 at 3 325 may push the stock index lower to the low of August 4 at 3 270. Follow further news!
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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