Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call. We open to a red metal market as oil prices increase by around 3.8%. This is following news of strikes and retaliatory strikes between the U.S. and Iran, which is noteworthy for causing very little movement in the Volatility Index (VIX). Copper, in the meantime, had a standout performance, as it grew by 0.9%, which we speculate is due to demand in data centre construction.
S&P 500 Index
The American market’s reaction to the news from the Middle East wasbeen muted to say the least, with the Volatility Index being unable to even reach the daily highs. This could be interpreted as the market pricing in the good news, as the possibility of a deal being reached isn’t entirely out of the question. For now, we recommend keeping an eye on the S&P 500, with 7,350. and 7,330. points as the lower daily levels to look out for, and 7,410. for the upper level.
Semiconductors
The semiconductor sector had a drop in stock value yesterday, as many of the prominent companies in the sector fell into the red. NVIDIA (NVDA) is a notable exception, as the company’s shares have risen by more than 7.5% from its weekly low on Tuesday, most likely as a result of a rotation play by fund managers. While the drop is not definitive, we think this could be a good time to invest in hedging options if you have a lot of longs in the sector, as a catalyst could cause a more significant downward movement in the sector.
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