Tech's Bright Monday
12 September 2023
Good morning and welcome to another trading day! Monday was nothing short of exciting, especially in the tech space. Tesla, for instance, had a day to remember as it surged by 10%. Morgan Stanley's perspective shift, suggesting Tesla be seen through the lens of a tech AI firm, played a pivotal role. The potential that Tesla's new supercomputer offers, especially when it comes to influencing the technological trajectory of the automotive sector, is enormous and has ignited a lot of interest.
Diving into our economic calendar, while Mondays typically have scant offerings, yesterday was no exception. However, today promises a tad more action. The spotlight will shine on the UK's Claimant Count Change. Market pundits are anticipating a figure of 17.1k, a noteworthy drop from the previous 29k.
Shifting gears to the charts, indices from Wall Street to Frankfurt showed some positive momentum. The S&P 500 seems to be navigating within the confines of a symmetric triangle pattern, with the upper line now within its sights. The Dow Jones, staying true to its resilience, took a rebound off the pivotal long-term uptrend line and currently trades confidently above it. Meanwhile, Nasdaq is inching closer to a mid-term downtrend line, where a breach could spell a long-term buying trend. Not to be left out, DAX too is courting its mid-term downtrend line, and a 15,800 points horizontal resistance. A successful breakthrough would solidify a mid-term buying cue.
On the currency front, Monday witnessed the USD in correction mode, as highlighted in our morning note. Today's narrative paints a different picture, with the USD trying to flex its muscles. By the curtain call of the Asian session, it was clear that the greenback was on the front foot. Despite this, the Forex sphere seems relatively calm, with most of the buzz geared towards indices and the much-anticipated CPI inflation data from the US slated for Wednesday.
Rounding things off with commodities, they seem to be taking a breather. Over the past few days, both precious metals and oil have been locked in a sideways trajectory. However, while metals are plateauing after a decline, oil is holding steady post an uptick. This divergence could hint at varied outcomes in the coming days.