Thursday, January 20, 2022

21 January 2022 Foreign

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


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E-Mini Dow


A rebound on Wall Street fizzled on Thursday as investors lost conviction that an early rally had legs, with the Nasdaq falling more than 1% and crude oil prices hitting fresh seven-year highs to rekindled fears of inflation and higher interest rates.

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Plan A: Remain short as long as market stays below 34909. Targets are 34500 and 34316.

Plan B: Consider long if market able to stabilize above 34500 and rebound. Targets are 34621 and 34909.



E-Mini S&P 500

Stocks moved lower on Thursday, giving up their sharp gains from earlier in the session, as Wall Street continues to struggle this year in a rising interest rate environment.

The S&P declined 1.1% after earlier advancing 1.53%.

Stocks moved lower as government bond yields remained elevated, part of a market repricing as the Federal Reserve gets set to tighten monetary policy. The central bank meets next week, with markets indicating just a slight chance of action on interest rates. However, traders have fully priced in the first of what is expected to be four 0.25 percentage point hikes through 2022.

The two-year Treasury, which is most closely tied to Fed rate policy, most recently yielded about 1.04%, while the benchmark 10-year note touched a high of 1.87%.

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Plan A : Short if market failed to support above 4452. Targets are 4440, 4431 and 4419.

Plan B : Long if market supported firm above 4452. Targets are 4465, 4477 and 4489.



E-Mini Nasdaq

U.S. stock index futures were lower during overnight trading Thursday following a disappointing earnings report from Netflix, building on the major averages’ declines during regular trading.

Thursday’s slide puts the Nasdaq Composite further in correction territory — more than 10% below its November record — as rising rates pressure technology stocks since future profits begin to look less attractive.

Shares of Netflix tumbled 19% during extended trading on Thursday after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth. 

Jobless claims for the week ended Jan.15 totaled 286,000 for the week, their highest level since October. The read was well above the Dow Jones estimate of 225,000 and a substantial gain from the previous week’s 231,000.

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Plan A : Short if market failed to support above 14860. Targets are 14811, 14758 and 14698.

Plan B : Long if market supported firm above 14860. Targets are 14901, 14945 and 14989.



HSI

China and Hong Kong stocks rose on Thursday after a set of key policy rates and lending benchmarks were cut to prop up slowing economy, with investors pinning hopes on further easing in policies by Beijing.

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Plan A: Remain buy as long as market trades firmly above 24567. Targets are 25017 and 25200.

Plan B: Consider short if market fails stay firm above 24850. Targets are 24680 and 24567.


WTI Crude

Oil slipped on Thursday as investors took profits after a recent price rally, but strong demand and short-term supply disruptions continue to support prices close to their highest since 2014. 

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Plan A: Remain short as long as oil price stays below 84.8. Targets are 83.3 and 82.7.

Plan B : Consider long if oil price stays firm above 83.3 and rebound. Targets are 84.1 and 84.8.


Gold

Gold and silver touched two-month highs on Thursday, lifted by worries surrounding inflation and Russia-Ukraine tensions.

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Plan A: Remain buy as long as gold trades firmly above 1832.1. Targets are 1843.9 and 1850.7.


Plan B: Consider short if gold price surges but fails to breach above 1850.7. Targets are 1840 and 1832.1


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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