Wednesday, August 11, 2021

12 August 2021 Foreign

            WTI Crude, Gold, HSI, Dow, S&P 500 and Nasdaq


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E-Mini Dow


The Dow and S&P 500 closed at record levels on Wednesday, as data indicated U.S. inflation growth may have peaked, while sectors tied to economic growth advanced on the heels of the passage of a large infrastructure bill.

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Plan A : Remain buy as long as market trades firmly above 35338. Targets are 35400 and 35529.

Plan B : Consider short only if market surges but fails to breach above 35400. Targets are 35338 and 35146.



E-Mini S&P 500

The Dow Jones Industrial Average and the S&P 500 rose on Wednesday after inflation jumped, but not by quite as much as investors feared when stripping out volatile food and energy prices.

The S&P 500 traded up 0.2% to 4,447.70, notching an all-time high. 

July's Consumer Price Index released Wednesday showed prices jumped 5.4% since last year, compared to expectations of 5.3%, according to economists surveyed by Dow Jones. The government said CPI increased 0.5% in July on month-to-month basis.

But investors were concentrating on the core rate of inflation, which could signal inflation will remain tempered and the economy will remain strong. CPI, excluding energy and food prices, rose by 0.3% last month, below the 0.4% increase expected. Core prices still jumped 4.3% on a year-over-year basis.

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Plan A : Long if market supported firm above 4436. Targets are 4445, 4457 and 4470.

Plan B : Short if market failed to support above 4436. Targets are 4422, 4407 and 4392.


E-Mini Nasdaq

U.S. stock futures were mixed early Thursday after the market shrugged off the July inflation report and the Dow Jones Industrial Average and S&P 500 hit records.

The Nasdaq Composite traded about 0.1% lower to 14,765.13.

Treasury yields dipped after the inflation report and a 10-year note auction showed strong demand. Dallas Fed President Robert Kaplan told CNBC the Fed should start removing stimulus in October, adding to the decline in yields.

Investors are keeping an eye on the weekly jobless claims data, which will be released Thursday morning.

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Plan A : Long if market supported firm above 14971. Targets are 15002, 15033 and 15071.

Plan B : Short if market failed to support above 14971. Targets are 14928, 14890 and 14842.


HSI

Hong Kong shares edged up on Wednesday as developer China Evergrande Group's plans to sell certain assets heal confidence in real estate companies.

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Plan A : Remain buy as long as market trades firmly above 26326. Targets are 26687 and 26740. 

Plan B : Consider short if market surges but fails to breach above 26687. Targets are 26515 and 26326.



WTI Crude

Oil prices reversed losses to trade in the green on Wednesday, after the White House called on OPEC and its allies to increase oil production to support the global recovery from the pandemic.

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Plan A : Attempt buy if oil price trades firmly above 69.0. Targets are 69.4 and 70.3. 

Plan B : Consider short if oil price surges but fails to breach above 70.3. Targets are 69.4 and 69.0.



Gold

Gold prices jumped on Wednesday after tame U.S. consumer price data eased fears that the Federal Reserve would taper its economic support sooner than expected.

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Plan A : Remain sell as long as gold price stays below 1766.1. Targets are 1750.6 and 1730.6.


Plan B : Consider buy only if gold price supports firmly above 1750.6 and rebound. Targets are 1756 and 1766.1.




Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com, mining.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice.As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

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