For subscribers of our “Daily Trading Signals”, we now also include a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (8 May 2023)
Click here to subscribe for the latest market report (15 May 2023)
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Market Recap & Upcoming Week

Last week, the Big Tech stocks, represented by the TAMAMA acronym, continued their strong performance with impressive year-to-date returns, underpinned by resilient results and a strategy of continual expansion and diversification.

On the other hand, there was a surprising underperformance of China’s stock market despite the nation’s strong economic rebound. The MSCI China index lagged behind the S&P 500, with an average profit growth of only 1% for listed Chinese companies. Concerns arose over the sustainability of the current consumption bounce and a weak job market for younger workers in the country.

Meanwhile, global inflation concerns persisted, with slow signs of cooling. The Federal Reserve held back on raising interest rates, due to banking system stresses and uncertainties around the debt ceiling. However, the markets noted some positive signs, including a slowdown in supercore inflation and a reversal in durable goods prices, primarily driven by a spike in used vehicle prices.

The challenge remains to navigate a path back to a situation where the Effective Federal Funds Rate exceeds inflation, with Wall Street calling for rate cuts to counteract the perceived dissonance between short-term rates and lower long-term Treasury yields.

As we move into the next week, the spotlight will fall on the last significant wave of this earnings season. Reports from retail giants like Walmart, Target, Home Depot, and Alibaba will provide insights into the consumer sector, potentially setting the tone for market sentiment.

The U.S. Census Bureau’s report on April retail sales, due on Tuesday, will offer critical information on the health of consumer spending, which has been a significant driver of economic recovery. Simultaneously, the housing market will be under scrutiny as data on building permits, housing starts, existing home sales, and the NAHB’s Housing Market Index for May is released.

On a global scale, economic indicators from Japan and the eurozone will attract attention with new GDP readings expected.

An inflation reading from Canada could give insights into the country’s economic health amid global inflation concerns.

A key event to watch will be the Group of Seven (G7) summit, commencing on Friday in Hiroshima, Japan. As the world leaders gather to discuss and form policy on pressing global issues, their decisions may have significant implications for global markets and international relations. Therefore, investors and observers should keep a keen eye on the outcomes of this summit.

Daily Trading Signals (Highlights)

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

• Forex, CFDs, commodities, bonds
• US stocks, ETFs, global stock indices
• Cryptocurrencies, crypto indices

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

CHFJPY – Another potential range trade

EURGBP – Breaking down from the descending triangle.

GBPNZD – Range trading for this pair, wait for a pullback for a better entry price.

Gold (XAUUSD) – On the long-term weekly chart of Gold, if prices manage to break out of the range, there is a lot of upside.

For subscribers of our “Daily Trading Signals”, we now also include a “Weekly Market Report”, where we provide a weekly deep-dive on the market, including fundamentals, technicals, economics, and portfolio management:

Click here for last week’s market report (1 May 2023)
Click here to subscribe for the latest market report (8 May 2023)
Click here to see the archives of all our past market reports

Market Recap & Upcoming Week

Last week, stock markets ended on a high note due to a strong jobs report and impressive first-quarter results from Apple. The S&P 500, Dow Jones, and Nasdaq Composite all rose significantly, with 253,000 jobs added in April and unemployment dropping to 3.4%.

Although the labor market recovery is ongoing, with downward revisions to previous months and mixed results, investors seemed optimistic that a recession is not imminent.

The Federal Reserve’s weekly balance sheet showed the biggest plunge in 14 years, reflecting the impact of the banking crisis and quantitative tightening. In Europe, the ECB raised policy rates by 25 basis points in response to the worst inflation in four decades, with plans to accelerate its Quantitative Tightening program.

Despite assurances of a stable banking system, regional bank stocks declined as investors expressed concern about the impact of regional banking problems on the broader economy.

Oil prices tumbled due to concerns that higher interest rates might slow the economy and curb energy demand, while corporate profit margins dropped less than expected despite inflation and aggressive interest-rate hikes.

The Federal Reserve raised policy rates amid these economic uncertainties, and the Eurozone grappled with record-high inflation in the services sector, prompting the ECB to maintain rate hikes as it approached its policy meeting.

This week, investors should look out for earnings reports from several major companies, including PayPal, Airbnb, The Walt Disney Company, Electronic Arts, Toyota, and Honda.

These reports could provide insights into the performance of various sectors and the impact of current economic conditions.

Additionally, important economic data will be released with the Consumer Price Index (CPI) and Producer Price Index (PPI) for April, which may reveal more about the ongoing inflationary trends.

Another key event to watch is the Bank of England’s (BoE) policymaker meeting on interest rates scheduled for Thursday. This meeting could offer clues regarding the central bank’s monetary policy stance amid rising inflation concerns.

Lastly, the U.K.’s gross domestic product (GDP) reading on Friday will provide further information on the country’s economic performance, potentially influencing markets and investor sentiment.

Daily Trading Signals (Highlights)

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

• Forex, CFDs, commodities, bonds
• US stocks, ETFs, global stock indices
• Cryptocurrencies, crypto indices

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Subscribe for real-time alerts and weekly reports:
👉🏻 https://synapsetrading.com/daily-trading-signals

USDCHF – First TP hit for 230+ pips profit! 💰🔥💪🏻

Trend is still very bearish, so it is a good idea to hold onto half the short positions to see if it can go lower.

Crude Oil (WTICOUSD) – Finally hit our TP giving a +16.5% profit in less than 2 weeks! Congrats to those who took this trade! 💰🔥💪🏻

CADJPY – Following up, the breakout turned out to be a false breakout, as prices quickly fell back into the range.

If this long bearish bar closes near the lows, we can consider re-entering the short trade.

Gold (XAUUSD) – If you have any long positions, this might be a good time to take some profits, since it is very near the the major resistance level.

NZDCHF – Going for another leg of profits, after pulling back to test the breakout and 20-EMA.