Market Overview

The following is a partial recap of the market analysis shared during today’s morning Discord call.

Today we see what could be the beginnings of a turnaround for gold, as it gives back some of yesterday’s gains, while the platinum groups open flat or in the red. The flat and down openings are also a theme in the broader market, both in the West and on our side of the world. Interestingly, Asia seems to be doing well, with Nikkei 225 (Japan), KOSPI (Korea) and the Hang Seng (Hong Kong) all in the green today. With commodities dropping and retailers taking hits in broad market sell-offs, we recommend keeping a close eye on the interest rate decision scheduled at 15:00 today, as it could determine where our market goes from here.

Software

Softwares took a hit yesterday, following ServiceNow’s (NOW) earnings. It’s worth keeping an eye on the sector in the near future, with the upcoming earnings from Microsoft (MSFT) next Wednesday (29th July), which could act as a short-term catalyst and bring a rotation out of semis and into softwares.

From left to right:  iShares Expanded Tech-Software Sector ETF, ServiceNow (NOW), and Microsoft (MSFT).

Tencent (700)

Tencent sees a bit of green today, even touching 2% growth at one point, before dropping back down to 1%. This could be the cause for some optimism, as we could see it retest the HK$460 and the subsequent HK$480 again. We believe that any further upside would require a proper catalyst, and the most likely candidate is the upcoming earnings on Wednesday, 12th August.

Local Stocks

Blue Label (BLU)

Blue is on our watchlist, as it has managed something of a comeback, finding new lows before breaking swing highs. We see R8.80 as the next level, which could see the stock test R9.0-9.25 again.

South32 (S32)

South32 sees another round of massive growth for a fifth day in a row, though interestingly, it didn’t leave a gap this time. There could be a shorting opportunity if it reaches R55-56, as a drop could see the stock close some or all of the gaps between R45 and R51.

AngloAmerican (AGL)

AngloAmerican released its production numbers earlier, displaying decent numbers overall. But most interestingly, it reported a significant cost cut in copper production, which should help push the company up.

Earnings & Economic Data

The interest rate decision at 15:00 is probably the most interesting item today, as it’s the most impactful and somewhat unpredictable. Yesterday’s CPI figures were quite hot, while the officials have had a rather hawkish tone as of late, which makes it all the harder to predict whether the interest rate goes up or down. Either way, the consumers and retailers will be the first to feel the effects.

After-Market Earnings

Intel (INTC)

Intel is the third-largest microchip designer and manufacturer, whose earnings have previously displayed the ability to move the semiconductor sector.

Newmont (NEM)

Newmont is a major American gold miner. With the price of gold falling, its earnings -particularly its forward-looking statements- should be worth keeping an eye on if you have any interest in gold.

Economic Data

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