FUTURESCOIN IS GOING GLOBAL
WTI Crude, Gold, HSI, Dow, S&P 500 and Nasdaq
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U.S. stocks climbed on Wednesday on the heels of a surprise quarterly profit from Disney and as investors stayed optimistic that a deal was near for a U.S. coronavirus fiscal aid package.
Plan A : Attempt long if market trades firmly above 27010. Targets are 27170 and 27320.
Plan B : Cut below 26920.
Plan C : Attempt short if market falls back below 27010. Targets are 26870 and 26666.
Plan D : Cut above 27120.
E-Mini S&P 500
The Dow climbed 373.05 points, or 1.4%, to close at 27,201.52. The S&P 500 advanced 0.6% to 3327.77. The Nasdaq Composite rose 0.5% to 10,998.40. Positive news on the coronavirus front and strong earnings from Disney lifted the market on Wednesday.
Johnson & Johnson rose 0.8% after announcing it struck a $1 billion deal with the U.S. government to manufacture 100 million doses of its coronavirus vaccine candidate if it proves successful. Disney shares popped 8.8% — their biggest one-day gain since March — on the back of a surprise quarterly profit.
ADP reported Wednesday that private payrolls in the U.S. increased by just 167,000 in July. That’s well below a Dow Jones estimate of 1 million and represents a tumble from the 4.314 million added in June. The ADP report is seen as a preview to the government’s monthly jobs report, which is forecast to show a gain of more than 1.2 million jobs.
Weekly jobless claims data are set for release Thursday along with Uber earnings.
Plan A : Long if market doesn't retrace much and supported firm above 3309.25. Targets are 3330.25, 3352.25 and 3380.50.
Plan B : Short if market failed to support above 3309.25. Target are 3280.25, 3261.75 and 3235.50.
Plan C : Long if market retraced but supported firm above 3284.25. Targets are 3305.25, 3328.25 and 3352.50.
E-Mini Nasdaq
Futures contracts tied to the major U.S. stock indexes traded flat during the overnight session Wednesday evening just hours after the Nasdaq Composite clinched its 31st record close for 2020.
The after-hours moves Wednesday evening followed a positive regular session on Wednesday, with the major indexes brushing off a weaker-than-expected private payrolls report and the Dow rising some 370 points.
Cyclical sectors including industrials, materials and financials contributed the most to the market’s gains during regular trading on Wednesday and allowed the Dow industrials (up 1.39%) and S&P 500 (up 0.64%) to outpace the Nasdaq Composite (up 0.52%).
Still, the Composite did manage to clinch yet another record close for the year and at one point Wednesday traded above 11,000 for the first time. The major market indexes are having a robust week, up 2.9%, 1.7% and 2.3%, respectively, since Friday’s close.
Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows also offered to extend a moratorium on evictions from federally backed housing into December. Democrats, meanwhile, cut their request for U.S. Postal Service funding to $10 billion from $25 billion, according to the reports.
The latest iteration of the Labor Department report on weekly jobless claims will be released Thursday morning.
The weekly figures provide Wall Street with critical insight on how many Americans continue to collect unemployment benefits, known as continuing claims.
Plan A : Long if market doesn't retrace much and supported firm above 11037.25. Targets are 11065.25, 11095.25 and 11121.25.
Plan B : Short if market failed to support above 11037.25. Targets are 10995.25, 10947.50 and 10900.25.
Plan C : Long if market retraced but supported firm above 10922.25. Targets are 10950.25, 10985.50 and 11028.75.
HSI
Hong Kong shares ended higher on Wednesday, tracking gains in Asia and mainland China, on hopes for more economic stimulus from global policymakers and a gradual recovery in the Chinese economy.
Oil prices rose to their highest since early March on Wednesday after a large decline in U.S. crude investoris and the dollar weakened, but mounting coronavirus infections had investors worried about the demand outlook.
Plan A : Remain buy as long as oil price stays above 41.6
Plan B : Exit below 41.0
Plan C : Consider selling if oil price surges but fails to breach above 42.6
Plan D : Cut above 43.1
Gold
Gold prices rocketed to a new record high on Wednesday after smashing past $2,000 for the first time, as a weaker dollar and falling returns on U.S. bonds drove investors to hoard the safe-haven metal.
Plan A : Remain buy as long as gold price stays firm above 2028
Plan B : Exit below 2020
Plan C : Consider selling if gold price falls back below 2028
Plan D : Cut above 2035