Global Equity Markets confirmed a swing low formation May 3 and 4 but are up against a major resistance threshold, writes Ziad Jasani of the Independent Investor Institute Monday.
View my market strategy video May 7
Recorded: Monday, May 7, 2018
Duration: 1:01:47
Consider these ideas:
- S&P 500 (SPX) breaking above 50-day moving average (2,680) opens room for rise to 2,788 – 2,765
- S&P/TSX Composite Index (TSX) breaking above 15,797 opens room for a rise to 16,095-15,943
- Sector specific decisions discussed in video (XFN-T, ZEB-T, XBI, XPH, XLV, XLB, XLI, IYW)
Eurozone Economic Data “decelerating/deteriorating” – global growth theme
Dissipating/Transitioning – All central banks on other side of U.S. more dovish.
- Attraction to the USD over Q2 vs. euro, yen, Swissy, pound (UUP, FXE, FXY, FXF, FXB)
- Focus on U.S./North American Equities for out-performance this week (SPY, QQQ, DIA, XIC-T, XIU-T)
- Waiting on stabilization of Emerging Market Currencies + Bonds before considering (EEM).
US Jobs data (May 4) printing weaker on the top & bottom line supports in the short-term:
- USD↓
- CAD, AUD, EUR, YEN, GBP, SWISSY↑
- US Treasury yields↓
- Bonds↑
- Commodities↑ (in particular precious metals)
- Trading ideas discussed in my video.
Oil break-out above $69.56 opening up a move to ~$72.50.
- Trading Energy-Equities on a momentum basis only (XLE, XOP, XES, XEG-T, ZEO-T).
Precious Metals waiting on a short-term cooling of the USD.
- Already in swing low positions on Gold/Silver from last week (GLD, CGL-T, SLV) patiently waiting to add
- When to add discussed in video.
View the Independent Investor Institute trading ideas and strategies videos here.