SGT Chart Book

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Highlights from Last Week

  1. Non-farm payroll release on Friday
  2. Wednesdays Fed Meeting, and
  3. Mega cap stocks continue to perform.

 

Friday’s monthly jobs report revealed an acceleration in hiring much higher than expectations. Employers added a seasonally adjusted 353,000 jobs last month. Wages also outpaced expectations, jumping 4.5% last month from a year earlier.

 

Bond yields moved higher. The yield on the 10-year U.S. Treasury note— closed the week at 4.03%. Friday saw the biggest one-day increase in the 10year yield since September 2022,

 

Fed left rates unchanged after their 2-day FOMC meeting. Main theme was chances of a March cut have diminished; this has been further confirmed after the very strong Labor market release.

 

The S& P 500 (USA500) rose 1.1% on Friday to reach an ATH. The Dow Jones Industrial Average (USA30) was up 135 points, or 0.3%, closing at a ATH for the 9th time this year. The Nasdaq Composite (USA100) gained 1.7%. All three indexes were up for a 4th consecutive week of gains.

 

Quarterly earnings reports this week put the spotlight on the Magnificent Seven stocks—Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.

 

Shares of Meta surged 20% after they reported their biggest quarterly sales increase in two years and initiated its first-ever dividend. That added $204.5 billion to Meta’s market value, the biggest one-day market-cap gain for any U.S. company in history.

 

More of the same for the major US equity indices.

USA30

USA100

USA500

10YEAR US RATES

Rates reacting to economic data, of note breaking below 200-day MA, then higher rates back into this area after Friday’s jobs data. As already mentioned, one of the largest one day moves seen since 2022.

EURUSD

Choppy sideways price action.

GBPUSD

Longer term down trendline still in place. BOE leaves policy unchanged in announcement earlier in the week.

USDJPY

Consolidating below 148.75/80 area. Big rally on Friday supported by US interest rate differentials.

XAUUSD

Choppy trading after seeing a move to $2065 area, best levels since early January.

XAGUSD

Ranges consolidate.

USOIL

After initial rally on back of Middle East news, prices are down close to 10%. We note testing trendline support off previous 2 lows.

BTCUSD

Bitcoin higher on the week.

ETHUSD

Bounces off strong support zone.

Happy trading,
SGT Trading Desk

trading@sgt.markets

Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.

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