The S & P500 gained ground over the past week, approaching the 3,200 point area. What are your expectations in the short term?
The S & P500 index closed positively last week, posting a rise of 2.05%.
The main American index enters the earnings season with a price close to the maximum reached in June at 3,229 points.
The climb was supported by an increase in the Federal Reserve budget that nearly reached $ 7 trillion.
At least for the time being, the strong increase in infections in the United States where over 63,000 new cases were registered in 24 hours was not frightened.
The news of a potential vaccine later this year has rekindled appetite for risk in the second half of the week.
As for the second quarter earnings release, the index suffered a 44% drop, the worst figure since the 2008 financial crisis.
From an operational point of view I continue to prefer short operations for the S & P500, however before entering I expect an attempt to retest the maximum at 3,220.
The Dax30 index showed a more cautious trend than the S & P500 in the last octave. What to expect now?
The German index also ended the week positively, with a modest rise of 0.89%.
The Dax30 moved forward this week because of its correlation with the American economy.
As well as the expectation of a vaccine by the end of the year, the data on industrial production in the Eurozone, which came out above analysts’ expectations, will be the driver.
For the week that began today we expect an increase in volatility which could start from some events in the Old Continent.
First of all, the ECB meeting and its monetary policy decisions, followed by the ZEW and the EU summit where the Recovery Fund will be discussed.
Also watch out for the earnings season on Wall Street.
From an operational point of view, for the Dax30 I think it is a good area to open some short positions between 12,750 and 12,800 points.
The euro-dollar tried to lengthen its pace beyond quota, only to retrace its steps. Can further progress be expected in the short term?
Last week ended with a slightly positive closing also for the euro-dollar which gained about half a percentage point.
The cross continues to remain compressed in a restricted area with a consequent decrease in volatility especially of the euro.
The dollar continues to be the main driver of exchange rate movements. The greenback began the week with modest recoveries thanks to its safe assets function.
However in the second half of the eighth, Trump’s tweets and rumors about the vaccine meant that the exchange rate recovered.
The ECB meeting and the EU summit will be decisive for this week: the operators’ eyes will be focused on these events.
From an operational point of view, my view remains long on the euro-dollar, for which long operations with target 1 figure and a half could be evaluated.
Gold has gone above the $ 1,800 an ounce threshold. Will the bullish march continue?
The rise of the yellow metal does not stop, ending another positive week.
Gold continues to shine, despite the fact that we are in a Risk-on phase.
Since the Fed announced unlimited QE in March, gold has appreciated by more than 20%, also supported by a weakening dollar, whose benchmark index has lost 5% since March.
The demand for gold is at an all-time high and this has obviously led to a sharp increase in the price which has definitely exceeded our first target at $ 1,800.
I expect a physiological decline in gold that I would use to increase long positions.