Tuesday, May 4, 2021

05 May 2021 Foreign

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


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E-Mini Dow


Dow pared its earlier losses and closed slightly higher on Tuesday as Nasdaq ended sharply lower as investors dumped megacap growth stocks to seek shelter in more defensive parts of the market, amid concerns on rising interest rate and uncertainty over an upcoming jobs report.

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Plan A : Remain buy as long as market trades firmly above 33939. Targets are 34066 and 34116.

Plan B : Consider short only if market fails to support above 33939. Targets are 33807 and 33654.



E-Mini S&P 500

The S&P 500 fell on Tuesday amid selling in Big Tech and other high-growth stocks, erasing the benchmark’s strong start to the month.

The broad market index closed the session 0.7% lower at 4,164.66 after dropping 1.5% at its low. The S&P 500 wiped out Monday’s gains, dropping 0.7%.

Reasons for the downward pressure varied, but strategists cited a mix of concerns about rising inflation, fears the Federal Reserve may have to taper monetary stimulus earlier than telegraphed, and the potential for tax increases in the months ahead.

Private payroll data will also be released Wednesday at 8:15 a.m. ET. Economists polled by Dow Jones are expecting 800,000 private jobs added in April, compared to the 517,000 in March, according to ADP. These numbers come ahead of Friday’s closely-watched jobs report.

Two key readings on the services sector will also be released on Wednesday morning.

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Plan A : Long if market supported firm above 4165. Targets are 4181, 4195 and 4212.

Plan B : Short if market failed to support above 4165. Targets are 4140, 4114 and 4088. 



E-Mini Nasdaq

U.S. stock futures were flat in overnight trading on Tuesday following a session defined by major weakness in technology stocks.

Pressure on some of the globe’s largest technology  companies sent the Nasdaq Composite down 1.9% to 13,633.50 for its worst day since March.

Apple, the largest publicly traded company in the U.S., fell 3.5%. Google-parent Alphabet lost 1.6%, Facebook shed 1.3% and electric car maker Tesla dropped 1.7%. Investors did not spare the market’s chipmakers, with Nvidia and Intel losing 3.3% and 0.6%, respectively.

There are a number of possible reasons for the downward pressure, including fears about rising inflation, concerns the Federal Reserve may have to taper monetary stimulus earlier than telegraphed, and the potential for tax hikes in the months ahead.

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Plan A : Short if market failed to support above 13575. Targets are 13533, 13489 and 13449.

Plan B : Long if market supported firm above 13575. Targets are 13605, 13637 and 13675.


HSI

Hong Kong shares settled higher on Tuesday, with energy stocks leading the gains on signs of recovery from the coronavirus pandemic as major economies around the world reopen.

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Plan A : Attempt long if market supported firmly above 28366. Targets are 28480 and 28639.

Plan B : Consider short only if market fails to support above 28366. Targets are 28238 and 28029.



WTI Crude

Oil prices rose on Tuesday after more U.S. states eased lockdowns and the European Union sought to attract travelers, though soaring COVID-19 cases in India capped gains.

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Plan A : Remain buy as long as oil price trades firmly above 65.5. Targets are 66.5 and 68.0.


Plan B : Consider selling only if oil price falls back below 65.5. Targets are 64.5 and 63.9.


Gold

Gold fell 1% on Tuesday after U.S. Treasury Secretary Janet Yellen said interest rate may need to rise.

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Plan A : Remain buy as long as gold price trades firmly above 1776. Targets are 1795.1 and 1814.1.

Plan B : Consider short only if gold price surges but fails to breach above 1795.1. Targets are 1781.9 and 1776.



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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