2/12 Monday Trading Plan

12 Feb

📊 Market Sentiment: Neutral

Economic Data Releases:

• S&P Global Market Intelligence: Anticipated inflation and GDP data across Western economies, with U.S. CPI figures, UK GDP, inflation, labor market statistics, and Japan's GDP data in focus.
  
• Australia's Employment Data: Expected to show job growth, albeit at a softer pace.
  

Market Sentiment and Indices:

• S&P Global Investment Manager Index: To provide insights into risk sentiment influenced by central bank policies, notably the Fed.
  
• S&P/TSX Composite Index: Watched closely alongside Canadian dollar and benchmark yield movements.
  

Corporate News:

• Galp Energia SGPS SA: Warned of lower earnings for the year.
  
• Gilead Sciences' Acquisition: Announced a $4.3 billion deal for CymaBay Therapeutics.
  
• Market Movements:
  
• S&P 500: Indicating a strong bull market since October 2022 with 10 new highs in 16 days.
  
• Diamondback Energy's Acquisition: A significant $26 billion deal with Endeavor Energy Resources.
  

Commodity Prices:

• Silver and Gold Prices: Declined amidst diminished expectations of Fed rate cuts.
  
• Global Market Updates:
  
• US Equities: Reached a more than two-year peak despite regional bank concerns and China’s market pressures.
  
• China's Consumer Prices: Highlighting deflation pressures with the fastest pace decline since the global financial crisis.
  

Financial Services News:

• Oil Market: Observations on investors dumping oil following a U.S. refinery shutdown.
  *U.S. Treasury Market:
  *Treasury yields dipped as key economic data and Federal Reserve officials' comments are awaited.

📈 Trading Plan for Monday:

Support Levels to Watch:

• Critical supports at 5039-40, 5028, and 5018-20, indicating pivotal points for maintaining bullish momentum.
  

Resistance Levels to Watch:

• Key resistances at 5047, 5054, and 5065-70, serving as potential targets for upward movement.
  

Trading Strategy:

• The strategy emphasizes capital preservation, acknowledging the chop range and potential for volatile movements.
  
• Bull Case: Focus on maintaining above 5028 for bullish market continuation.
  
• Bear Case: Watch for breach below 5028, indicating potential shift towards bearish sentiment.
  

Tactics:

• Emphasize disciplined trading within identified support and resistance levels, with cautious engagement in new positions given the expected market chop.
  

🛑 Disclaimer: This analysis is for educational purposes only and is not financial advice. Always consult with a professional financial advisor before making trading decisions.