Sunday, May 9, 2021

10 May 2021 Foreign

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


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E-Mini Dow


The S&P 500 and the Dow hit record highs on Friday, while megacap growth stocks drove a recovery on Nasdaq after U.S. jobs data eased concerns over prospects for rising rates. 

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Plan A : Remain buy as long as market trades firmly above 34554. Targets are 34807 and 35168.

Plan B : Consider short only if market surges but fails to breach above 34807. Targets are 34688 and 34554.



E-Mini S&P 500

U.S. stocks jumped to record levels on Friday even after a disappointing April jobs report as the weak number made investors believe easy monetary policies that powered the market’s historic rebound will stay in place for longer. Some investors also dismissed the report as a one-time blip that doesn’t signal any slowdown in the economic recovery.

The S&P 500 climbed 0.7% to 4,232.60, hitting a record high. The S&P 500 gained 1.2%.

The Labor Department said non-farm payrolls increased by just 266,000 in April, far less than the 1 million total economists were expecting, according to Dow Jones. The unemployment rate rose to 6.1% last month amid an escalating shortage of available workers, higher than an expectation of 5.8%. Meanwhile, March’s originally estimated total of 916,000 was revised down to 770,000.

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Plan A : Short if market failed to support above 4216. Targets are 4191, 4165 and 4138.

Plan B : Long if market retraced but supported firm above 4216. Targets are 4233, 4247 and 4268.



E-Mini Nasdaq

Futures contracts inched higher in the overnight session Sunday evening, suggesting that the major U.S. equity indexes could trade at or near records when regular trading opens in New York.

The tech-heavy Nasdaq Composite popped 0.9% to 13,752.24. The Nasdaq Composite shed 1.5% this week.

Investors bet that the big jobs miss could keep the easy policies of the Federal Reserve in place, including record low interest rates and a massive bond-buying program. Tech stocks, which have been winning under the low-rates regime during the pandemic, outperformed after the data release. Microsoft and Tesla both rose more than 1%, while Netflix, Alphabet and Apple all registered gains. Higher rates tend to hit growth stocks the most since they reduce the value of their future earnings.

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Plan A : Long if market retraced but supported firm above 13608. Targets are 13641, 13670 and 13701.

Plan B : Short if market failed to support above 13608. Targets are 13561, 13525 and 13478.



HSI

Hong Kong stocks slipped on Friday to post weekly losses, weighed down by tech firms sensitive to tensions between China and the West.

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Plan A : Remain buy as long as market trades firmly above 28482. Targets are 28639 and 28912.

Plan B : Consider short only if market surges but fails to breach above 28741. Targets are 28632 and 28529.



WTI Crude

Oil prices steadied on Friday and were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India capped prices.

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Plan A : Remain buy as long as oil price trades firmly above 63.9. Targets are 65.5 and 66.5.


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


Gold

Gold extended its rally, jumping more than 1% to its best week since November last year after an unexpected drop in U.S. jobs growth in April hastened a retreat in the dollar and U.S. Treasury yields.

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Plan A : Remain buy as long as gold price trades firmly above 1819.2. Targets are 1838.3 and 1851.4.

Plan B : Consider short only if gold price surges but fails to breach above 1838.3. Targets are 1830 and 1819.2.



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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