Tuesday, August 18, 2020

19 August 2020 Foreign

                                    FUTURESCOIN IS GOING GLOBAL


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

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E-Mini Dow


The Dow dropped 66.84 points, or 0.2%, to 27,778.07. However, the S&P 500 climbed 0.2% to a record high of 3,389.78. The Nasdaq Composite advanced 0.7% to 11,210.84. The S&P 500 broke out to an all-time high, completing its recovery from the coronavirus sell-off.

The S&P 500′s move into record territory came after more than a week of flirting with the milestone. “There has been a lot of good news seemingly validating” this move higher, said Andrew Slimmon, managing director at Morgan Stanley Investment Management. However, Slimmon added the market is currently “very vulnerable to some type of bad news,” citing the S&P 500′s narrow leadership on toward the record high.

Amazon shares popped more than 4% to lead other major tech names higher. Alphabet advanced 2.6% and Facebook closed 0.5% higher. Apple and Microsoft each rose more than 0.5% and Netflix gained 2%.

Shares of retailers capped the major averages gains on Tuesday, despite Walmart and Home Depot’s better-than-expected quarterly results. Kohl’s plunged more than 14% after the company offered a grim outlook ahead of the all-important holiday season.

Retail earnings continue on Wednesday with big-box retailer Target and home improvement company Lowe’s reporting before the opening bell. TJX Companies also reports Wednesday morning. Closely watched chip stock Nvidia reports quarterly results after market close on Wednesday.

The minutes from the Federal Reserve’s meeting in July are set for release on Wednesday.


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Plan A : Long if market doesn't retrace much and supported firm above 27710.25. Targets are 27745.25, 27765.50 and 27800.50.

Plan B : Short if market failed to support above 27710.25. Targets are 27668.25, 27612.25 and 27579.25.



E-Mini S&P 500

The S&P 500 index closed at an all-time high on Tuesday, completing its recovery from the stock market crash after the onset of the coronavirus crisis in February.

The index ended at 3,389.78 points, above the previous record close of 3,386.15 on Feb 19. Earlier it topped the old intraday high of 3,393.52 hit the same day, further underlining the disconnect between a rally driven by trillions of dollars in government stimulus and a recession-hit U.S. economy.

The record confirms, according to a widely accepted definition, that Wall Street’s most closely followed index entered a bull market after hitting its pandemic low on March 23. It has surged about 55% since then. It makes the bear market that started in late February the S&P 500’s shortest ever.

On the day, the S&P 500 gained 0.23%. The Nasdaq gained 0.73%, hitting another high, and the Dow Jones Industrials, which is still about 6% below its February highs, slipped 0.24%.

Of the 11 major S&P 500 sectors, the technology index, which includes Apple Inc and Microsoft Corp, has climbed about 25% this year, while the consumer discretionary index, which includes Amazon, has jumped 23%.

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Plan A : Short if market failed to support above 3378.50. Targets are 3345.25, 3315.25 and 3281.25.

Plan B : Long if market retraced then supported firm above 3325.50. Targets are 3345.25, 3358.25 and 3388.75.



E-Mini Nasdaq

U.S. stock futures were flat in overnight trading on Tuesday, after the S&P 500 hit its highest level ever, wiping out all the losses from the coronavirus sell-off. 

The tech-heavy Nasdaq Composite in June was the first of the three major U.S. stock indexes to reclaim record highs as investors gravitated to stocks including Amazon.com and Netflix seen as stay-at-home winners from COVID-19 lockdowns.

The Nasdaq Composite also notched a record on Tuesday after gaining 0.7%, helped by a 4% gain in Amazon and a near 2% gain in Netflix. 

Investors are still eyeing a second coronavirus stimulus bill from Washington. Treasury Secretary Steven Mnuchin criticized Democratic leaders as obstinate and unwilling to discuss a smaller relief package on Tuesday; however, Politico reported House Speaker Nancy Pelosi said she is was willing to cut some demands to get an agreement on the bill. 

The Federal Open Market Committee will publish its meeting minutes from its June meeting on Wednesday at 2:00 p.m. ET. 

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Plan A : Short if market failed to support above 11375.50. Targets are 11330.25, 11290.25 and 11230.75.

Plan B : Long if market retraced then supported firm above 11234.50. Targets are 11266.25, 11292.25 and 11330.75. 



WTI Crude

Oil prices slid on Wednesday as concerns grew that U.S. fuel demand may not recover quickly amid stalled talks on a post-coronavirus economic stimulus package, overshadowing a bigger-than-expected drawdown in U.S. crude stocks.

With investors keeping one eye on a key producer countries’ ministerial meeting later in the day, Brent crude futures fell 38 cents, or 0.8%, to $45.08 a barrel by 0029 GMT, having edged up 9 cents on Tuesday.

U.S. WTI crude futures was down 25 cents, or 0.6%, at $42.64 a barrel, having ended unchanged the previous day.

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Plan A : Short if market failed to support above 42.70. Targets are 42.39, 42.08 and 41.79.

Plan B : Long if market retraced then supported firm above 41.88. Targets are 42.25, 42.52 and 42.78.



Gold

Gold prices edged higher on Wednesday, holding above the key $2,000 per ounce pivot, supported by a sagging dollar, while investors awaited minutes from the U.S. Federal Reserve’s last policy meeting later in the day.

Spot gold was up 0.1% at $2,002.12 per ounce by 0029 GMT, after hitting a one-week high of $2,014.97 on Tuesday.

U.S. gold futures eased 0.1% to $2,011.60 per ounce.

The dollar index fell for a sixth straight session, down 0.1%, to hold near a more than two-year low hit in the last session, making gold less expensive for holders of other currencies.

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Plan A : Long if market supported firm above 1998.10. Targets are 1998.90, 1999.80 and 2000.80.

Plan B : Short if market failed to support above 1998.10. Targets are 1997.10, 1996.20 and 1995.00.

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 and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correctaysion, 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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