Welcome to the Weekly Market Update!
Welcome to this week’s edition of the Weekly Trading Insight! As we navigate through a dynamic market landscape influenced by technological advancements and key economic indicators, our aim is to equip you with the necessary insights to make informed trading decisions. This week, we delve into the latest market data, highlight significant trends, and identify opportunities that lie ahead.
Market Recap
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US 30: Closed at 38,485.00, down by 104.2 points or 0.27%. The index experienced a decline due to market adjustments.
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US 500: Ended the week at 5,425.90, decreasing by 5.7 points or 0.11%. Minor losses in several sectors contributed to the downward movement.
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Dow Jones Industrial Average: Decreased to 38,589.16, down by 57.94 points or 0.15%. The index was impacted by a general market pullback.
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S&P 500: Finished at 5,431.60, down by 2.14 points or 0.04%. Slight declines across various sectors affected the overall performance.
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Nasdaq Composite: Closed at 17,693.43, up by 25.87 points or 0.15%. Some tech stocks gained, providing positive momentum.
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S&P 500 VIX: Increased to 13.08, up by 0.42 points or 3.32%, indicating a rise in market volatility.
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Dollar Index: Slightly decreased to 105.157, down by 0.010 points or 0.01%. The US dollar showed minimal movement against a basket of major currencies.
Feature Analysis: German Metalworkers Demand 7% Wage Increase
The German metalworkers’ union IG Metall is seeking a 7% wage increase in the upcoming bargaining round. Despite a drop in inflation, the cost of living remains high. The negotiations, affecting 3.9 million workers in companies like Thyssenkrupp and Bosch, will start in mid-September. The European Central Bank, which recently cut interest rates, is closely watching wage trends as inflation pressures persist. German consumer inflation rose to 2.8% in May, up from 2.4% in April.
Trading Strategies and Ideas
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S&P 500 Index: The S&P 500 hit another record high, driven by mega-cap tech stocks. The Relative Strength Indicator (RSI) is above 70, indicating an overbought status, which often precedes a pullback. Historical patterns show that consolidation usually follows an overbought RSI. June seasonality is also weak for the SPX. Near-term outlook: slightly bearish.
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Nasdaq Composite Index: The Nasdaq Composite is showing caution with an RSI of 76, suggesting it is overbought. A pullback in the Nasdaq could impact the S&P 500 due to its tech-heavy composition. NVIDIA, a significant market influencer, has an RSI of 80, indicating it might also be due for a pullback. Near-term outlook: bearish.
Upcoming Events to Watch
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Tuesday (June 18): Business Inventories, Capacity Utilization, Industrial Production, Net Long-Term TIC Flows, Retail Sales
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Wednesday (June 19): MBA Mortgage Applications Index, NAHB Housing Market Index
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Thursday (June 20): Building Permits, Continuing Claims, Current Account Balance, Housing Starts, Initial Jobless Claims
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Friday (June 21): EIA Natural Gas Inventories, Existing Home Sales, Leading Indicators.
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Remember to stay informed, adapt to market conditions, and focus on disciplined trading practices. Your success is our top priority, and we’re here to support your journey.
Disclaimer
This newsletter is for informational purposes only and does not constitute financial advice. Always do your own research and consider consulting a financial advisor.
Thank you for reading! Wishing you successful trades ahead!
