Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Yesterday’s market in the U.S. was eventful, with many ups and downs, as the S&P 500 touched both the upper and lower levels several times before closing almost flat. We also see a clear rotation in the U.S. tech market, with semiconductors down 6.2% while software continued to rise. With the new quarter having just started, it’ll be most interesting to see where things go during the month, which could possibly set the pace for the rest of the quarter. In the commodity market, we see platinum and palladium in the green, while the other metals start in the red. Curiously, oil could continue its drop in the mid to long term, as some reports indicate an oil surplus in the coming years.
Softwares
Softwares had a great day yesterday, being on the winning end of a rotation, which could have been caused by a successful announcement from Meta (META), boosting the sector. Regarding individual stocks, Microsoft (MSFT) is currently resting at $384, breaking the $380 level of resistance, though not by much. Meanwhile, Adobe (ADBE) seems to be turning its fortune ever since its earnings in early June. With a gap to close, all the way at $218, we believe Adobe warrants a closer look. Other software stocks with good performance include but are not limited to: Workday (WDAY), Salesforce (CRM), and Meta.
From left to right: iShares Expanded Tech-Software Sector ETF (IGV), Microsoft (MSFT), Adobe (ADBE).
Local Stocks
South32 (S32)
South32 had a great day yesterday, following the sale of its aluminium assets. However, it has dropped by around 4.7% overnight, as Australia seems to have taken the opportunity for profit-taking.
Aspen Pharmacare (APN)
Aspen has been trading well and touched R160 yesterday. This brings it back to the same ballpark as April of last year, before it saw a significant drop. With that gap closed, it seems to be gaining momentum again and might be of interest to you.
Economic Data
U.S. NFPs (Nonfarm Payrolls) are scheduled at 14:30 SAST today, and to put it simply: higher results could lead to an interest rate hike, while lower numbers could be bad for the dollar and good for commodities. The U.S. market will also be closed tomorrow, due to a public holiday.
Start your trading journey with us today!
We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?
*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.
