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US Stock Markets Hit New Record Highs; Is it Time to Short or Time to Jump In?

Jul 12, 2019 (07:27)

by John Knobel

Global Market Insights:

When stock markets hit new all-time highs, investors start to get uncomfortable; be alert for possible selling pressure across European, American and Asian stock markets as investors may be seeking to take some profits off the table; any downside potential may create new opportunities for buyers to re-enter at lower prices; otherwise if no pullback happens to develop…upside momentum may just continue onwards….

US Dow Jones 30 stock index at historic all-time highs; low US unemployment; inflation under control and lower cost of borrowing on the way creates demand to buy stocks as corporate profits and US economic growth expected to get a boost on lower US interest rate prospects;

European economies set to get a boost; the European Central Bank (ECB) Council agreed to prepare for adding further economic stimulus according to the latest release of the ECB Account of Monetary Policy Meeting;

Charts

Italy outperforms European stock indices; traders on alert for profit taking and a potential dip lower for the MIB after advancing +14% since May; European Central Bank (ECB) support to add economic stimulus pushes investors to add Italian stocks to portfolio’s on prospects Italy’s economy will recover; Italy’s MIB stock index current price 22,100 +8% last 30 days; next challenge for the MIB is to overcome the 22,205 high to open up potential for 22,600 price extension;

German DAX current price 12,309 trading below its short and medium term 4 and 9 period moving averages ; RSI crossed below its 70 signal line (bearish) indicates downside pressure; despite the current multi-month uptrend remains intact prices may fall lower towards the 12,340 – 12040 zone for buyer support before attempting to continue the current uptrend;

Upcoming Earnings

Goldman Sachs reports on July 16^th (Tuesday); forecasted to earn $5.212 per share (EPS) on $9.048.375 billion in sales;

FX Daily Trends

GBP/USD potential upside break-out as price bounces off recent lows;
EUR/USD remains in a multi-month weak uptrend;
USD weakens; USD Index in multi-month downward price channel

Commodities Daily Trends

Crude Oil (CL) facing resistance; upside momentum slowing; price looking for next catalyst;
Platinum prices in weak uptrend; upside price momentum starting to increase;
Gold price consolidating the May to June gains; price trading with $1,445 - $1.382 range until break-out in either direction

Source: FXGM / Bloomberg

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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