SGT Chart Book

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Weekly Headlines

Happy Lunar New Year: Year of the Dragon

  • S&P 500 Index reached new highs and breached 5,000 for the first time. Up 14 or the past 15 weeks for the first time since 1972. WOW!
  • Nikkei hits a 34 year high. Now only approx. 5% away from ATH set December 1989.
  • Bitcoin soared +12% and is back above $48,000, its highest 'close' since December 2021. Up over 12% on the week.
  • Microsoft market capitalization is $3.125 trillion, setting a record as America’s most valuable public company ever, topping the mark set by Apple last summer.

Wall street Journal Saturday 10th February 2024 Headlines

  • Economy Drives Markets to Fresh Highs
  • Major U. S. indexes’ run over the past 15 weeks is like nothing seen in decades.

The rally reflects unexpected strength in the economy that has investors believing that as long as the expansion continues, they can ride riskier assets to gains even if interest rates remain high.

Similar theme: The Nasdaq Composite Index is up 6.5% so far this year. The Dow Jones Industrial Average is up 2.6% year-to-date. The SP 500 has risen 5.4% in 2024. Technology stocks pushed the S& P 500 past another milestone and to a fresh record on Friday, with the broad index closing above 5000 points for the first time.

Each of those indexes have risen during 14 of the past 15 weeks. The S& P 500 hasn’t had a run like that since a stretch that ended in March 1972. The last time the Dow and Nasdaq did was in the 1990s.

Investors have been anxious about recession since the Federal Reserve, seeking to tame inflation, raised interest rates to their highest level in decades. But a blockbuster jobs report last week showed persistent strength in the labor market, and corporate earnings have continued to grow even as cooling inflation has weakened the pricing power of many companies.

Investors will get a fresh read on inflation on Tuesday when the latest consumer price (CPI) data is published. Retail sales data is due out on Thursday and supplier prices will be seen on Friday. Also, next week, a number of scheduled quarterly earnings reports are released.

The yield on the 10-year U.S. Treasury note moved up to 4.186% Friday, from 4.169% below 4% at the start of the year.

SP500

Close above 5,000, we do see bearish divergencies: price action against the indicator.

US10YR RATES

Inflation data next week. Hoovering above 200-day MA.

EURUSD

Reach new yearly low last week testing December 2023 lows around 1.0720 and the 61.8% retracement of previous rally from 1.0445-1.1140 @ 1.0715 area.

GBPUSD

GBPUSD moved lower with longer term trend, breaking below the recent 1.26-1.28 range. Lows last week around 1.2520 (very close to the 200-day moving average).

XAUUSD

Hourly chart shows mostly sideways action with a noticeable area of resistance seen in the $2060 area.

XAGUSD

Continues to consolidate, within larger chart formation.

USOIL

Bounce off trendline support.

BTCUSD

Aggressive rally to test above $48,000, after initial ETF release selloff.

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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