Overnight Moves

Today, we looked at 13 charts; below are only a few. Join us in the morning call on Discord to see it all. Let’s have a look at the overnight moves. Yesterday’s news headlines were the natural continuation of the day before, with further reports of talks taking place between the U.S. and Iran. We also saw sections of the market reach all-time highs, which could be a sign that global supply chains are adapting to the situation in the Strait of Hormuz. Meanwhile, Tencent (700) had the biggest move this morning, up 3%, which will set off a domino effect for Naspers (NPN) and Prosus (PRX), so keep an eye on them!

S&P 500 Index

The S&P 500 has continously grown since last Wednesday, and reached an all time high this morning. Judging by yesterday’s run-of-the-mill headlines, it’s doubtful that this change was brought about by any particular event. If you managed to buy in during the lows of late March, you’re in a good spot, and if you’re a dynamic trader, it’s still important to keep an eye out for the headlines and where the market goes from here.

Software Sector

The software sector saw a growth of roughly 4%, and we could be seeing a turning point for the sector at large. We speculate that $84 dollars on iShares Expanded Tech-Software Sector ETF (IGV) is the level to look out for, as it matches the previous high, and we could see further growth if it breaks past that level.

As for stocks in the software sector, Oracle (ORCL) was able to break swing highs, and Microsoft (MSFT) had a very strong day, with a solid 4,6% in the green. We think that Microsoft still has more growth potential, especially with their upcoming earnings on April 29th. It’s also worth noting that Alphabet/Google (GOOGL) -which also deals in part with software- is getting close to swing highs, which could be forecasting a similar pattern of growth to all-time highs for Microsoft in the coming months. All in all, we view Microsoft as a good investment for both long-term and swing traders.

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*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.