For our “Daily Trading Signals”, we have now also included 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 (24 April 2023)
Click here to subscribe for the latest market report (31 April 2023)
Click here to see the archives of all our past market reports

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

Market Recap & Upcoming Week

Last week, the potential of generative AI technology to boost revenues for tech giants like Amazon, Microsoft, and Alphabet created a buzz in the market. Despite the growth slowdown in their cloud-computing services, shares of these companies have outperformed the S&P 500 and Nasdaq Composite. Microsoft’s plans to adopt OpenAI’s ChatGPT technology, Alphabet’s share increase, and Amazon’s AI plans announcement contributed to their stock performance.

On the other hand, Moody’s Investors Service downgraded 11 regional banks, highlighting the increased instability in the banking sector due to higher interest rates and recent bank failures. This exposed weaknesses among regional banks and raised concerns over the commercial real estate market.

In the stock market, S&P 500’s trading at 18 times its 12-month forward P/E estimates has led institutions to reduce exposure to economically-sensitive sectors in anticipation of a potential U.S. recession. Insider buying in the financial sector signals optimism, but analysts urge caution as other factors can influence stock performance. As the first quarter US earnings season unfolds with mixed results, hedge funds have increased their net short position in S&P 500 index futures, showing skepticism about Wall Street’s recovery. However, some analysts argue that equities still offer better returns than bonds and have the potential for earnings growth.

This week, as earnings season marches on, investors will keep a close eye on reports from major companies such as Pfizer, Starbucks, Uber Technologies, AMD, Qualcomm, Apple, Royal Dutch Shell, BP, and ConocoPhillips. Additionally, Berkshire Hathaway’s annual shareholders’ meeting in Omaha, Nebraska, will draw attention to Warren Buffett’s insights and investment strategies.

In terms of economic indicators, updates on the labor market will come in the form of the Job Openings and Labor Turnover Survey (JOLTS), ADP’s National Employment Report, and the April nonfarm payrolls report.

In addition, central to financial discussions this week will be the Federal Reserve’s two-day Federal Open Market Committee (FOMC) meeting, commencing on Tuesday. Market participants will be eager to learn the outcome of Wednesday’s interest rate decision, which is anticipated to be the final rate hike in the current tightening cycle. As these events unfold, investors will be looking for hints on how companies and the economy will navigate the ongoing challenges posed by inflation, interest rates, and potential slowdowns in growth.

Daily Trading Signals (Highlights)

AUDCHF – Following up, it has hit the first TP with 170+ pips profit! 💰🔥💪🏻

Since price action is still bearish, can consider closing half and letting the other half trail.

EURAUD – Our TP for this has hit with 630+ pips total profit. Congrats to those who took this trade! 💰🔥💪🏻

Price momentum is still strong, so if you want to leave a small position to run you can do so as well.

GBPCAD – Prices resuming upward move, let’s see how far it can go!

GPBUSD – Following up, prices are starting to head up after consolidating for the past month or so.

Dow Jones Index (US30) – Good low risk high reward shorting opportunity near the top of the price channel.

Crude Oil (WTICOUSD) – Since it failed to hold new highs, prices might come back to test the bottom of the range.

Spencer Li

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.

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

Click here for our most recent market report (10 April 2023)
Click here to see the archives of all our past market reports

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

[Photo: Neuschwanstein Castle, Schwangau, Germany – See my full travel photo log from trading & travelling!]

Market Recap & Upcoming Week

Last week, the S&P 500 and Dow Jones Industrial Average experienced fluctuations as inflation in March dropped to its lowest level in almost two years, increasing optimism among investors. The March CPI report showed falling energy prices, rising services prices, and a slowdown in food inflation. Investors should keep an eye on durable goods prices as their increase could signal more challenges for inflation.

Gold prices surged to their highest level of the year, reflecting a 13% increase year to date. Despite slowing inflation data, investors anticipate the Federal Reserve scaling back its rate-hiking campaign due to concerns about economic weakness. Used vehicle prices, which spiked in 2020-2021, started to drop in early 2022, but the not-seasonally-adjusted CPI for used vehicles increased by 1.0% in March, suggesting the drop in used vehicle CPI may be over.

Ethereum (ETH) broke to news highs, and the Shapella Upgrade successfully boosted the price of ETH, even though it enabled withdrawals from the Beacon Chain. Staking inflows have risen for four consecutive days, reflecting bullish sentiment towards Ethereum after its shift to a Proof-of-Stake protocol.

Singapore’s economy grew by a mere 0.1% year-on-year in Q1 2023 due to a decline in manufacturing, and the country risks entering a technical recession if growth continues to slow in Q2 2023. JPMorgan, Citi, Wells Fargo, and PNC Financial reported their results, with mixed outcomes for their stocks.

The International Energy Agency (IEA) warned of a larger deficit in the oil market due to surprise production cuts from OPEC’s leading members, which could send crude prices higher and worsen inflation.

In the upcoming week, earnings season will be in full swing, with reports from major companies such as Johnson & Johnson, Bank of America, Netflix, Lockheed Martin, Tesla, Morgan Stanley, IBM, American Express, and Procter & Gamble. Updates on the housing market, inflation readings from the U.K., eurozone, and Japan, and Q1 GDP figures from China will also become available.

Daily Trading Signals 

Here are some of the real-time signals and price alerts that were triggered during the week. There were a lot of profitable forex trades, but the biggest profits came from our trade on Ethereum, which has been up by more than 20%!

Ethereum (ETHUSD) – Short-term momentum is still very strong, as prices blew past $2,000.

Congrats to all those who took this trade! 💰🔥💪🏻

Can consider taking half profits and continue riding the uptrend.

Actually will probably go to $2k soon, so can wait a while more.

Bitcoin (BTCUSD) – Prices broke out from the symmetrical triangle, and above $30,000, which is an important psychological price level.

Looks like it will continue going higher.

USDCHF – Congrats to those who took this trade, I did not expect the TP to be hit that fast! 💰🔥💪🏻

There is strong support around 0.88, so you might want to consider taking half profits and trailing the rest.

USDSGD – Now that prices have broke down from the bear flag, I won’t be surprised if the prior low gets tested.

Dow Jones Index (US30) – Long shadows near the trendlines have so far led to price rejections and price moving to the opposite side of the price channel.

CHFJPY – Prices breaking out from a period of consolidation.

Spencer Li

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.