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. The market continues to decline as uncertainty continues. Precious metals and in particular the PGMs (like Platinum and Palladium) took a hit, while oil is up by 2.6%. This has manifested as a 1.8% increase in Sasol (SOL), making it a prime target for profit-taking. However, the rest of the market is relatively subdued, with this week seeing one of the lowest weekly trading volumes in recent history. As a result, we predict a very quiet session today, as there aren’t any noteworthy earnings or economic data scheduled for release to play off of, and next Monday (April 27th) is a public holiday.

S&P 500 Index

The U.S. market continues to trade at swing-time-highs. Yesterday it saw a massive drop, prompted by news of Israeli airstrikes against Iran, which quickly turned out to be false. Subsequently, the market returned more or less to the same spot. This goes to show how sensitive the market currently is, despite ongoing negotiations, and negative news are likely to result in quick reactions from the market.

Software

The software sector has been trading poorly since yesterday, when ServiceNow (NOW) took a hit following its earnings. We intend to closely monitor the sector going into summer. But in the short term, all eyes remain on Microsoft (MSFT), which has notably suffered less than the rest of the sector, and has earnings scheduled on the 29th of April (Wednesday next week).

Intel (INTC)

Intel surprised the market with its earnings yesterday, beating the estimates by over 14 times. The company has been on the rise since August of last year, when it received an $8.9 USD investment from the U.S. government. It’s currently trading close to all-time highs, making it a somewhat difficult share to play with. But it’s worth keeping an eye on regardless, as Intel is a major micro-chip manufacturer, and it will have a ripple effect on the Semiconductor market, as well as the tech sector at large.

PHLX Semiconductor Sector (SOX)

Semiconductors have been on one of the longest streaks of up days, and we speculate that Intel’s (INTC) gains could lead to further growth in the Semiconductor market. We recommend keeping an eye on the PHLX Semiconductor Sector (SOX) index going into the day.

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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.