1/26 Friday Trading Plan

26 Jan

📊 Market Sentiment: Bullish

🌍 Global Financial and Economic News:

• Canadian Financial Results and Economic Outlook Forum: The Department of Finance Canada is set to publish financial results for November 2023. Additionally, the 35th Annual Economic Outlook Forum, presented by Scotiabank, is taking place in Vancouver, aiming to provide insights into what businesses can expect from the local and national economy in the year ahead. Keynote speakers include Scotiabank's chief economist Jean-Francois Perrault, Jobs Minister Brenda Bailey, and Housing Minister Ravi Kahlon.
  
• Earnings Reports: American Express Co. and Colgate-Palmolive Co. are reporting their earnings, which are closely watched by investors for signs of corporate health and consumer spending trends.
  
• European and US Stock Markets: European stocks have risen, driven by strong earnings and expectations that euro-area interest rates may start falling from April. However, US stock futures indicate a pause after six days of gains, with Intel Corp.'s bleak forecast impacting technology stocks and premarket trading.
  
• Global Credit Spreads: Corporate bond investors are actively buying new issues, taking advantage of elevated yields before potential interest-rate cuts by major central banks. The Bloomberg Global Credit Corporate index shows yield premiums on notes tightening to the lowest since late January 2022.
  
• US Economic Data: The US economy grew at a 3.3% annual rate in the last three months of 2023, surpassing economists' expectations. This strong growth, along with moderating inflation, fuels optimism that the Federal Reserve may start cutting interest rates this year.
  
• Leading Economic Indicators: The leading economic index from The Conference Board, which historically predicts economic downturns, showed a decline in November and is expected to have a slight decrease for December. This comes amid a debate on the reliability of this index in the post-COVID-19 economic recovery context.
  
• Housing Sector Update: Updates on the housing sector are expected, with forecasts of a pickup in sales of both new and existing homes in December. Mortgage rates are anticipated to fall, potentially boosting home buying activity in the future.
  
• Investment Strategies for 2024: Financial experts are advising investors to consider opportunities and not to sit on large amounts of cash due to fear of market downturns. Risk management remains a key discussion point for investment strategies in 2024.
  
• US Inflation and Federal Reserve Policy: US prices rose moderately in December, with the annual increase in inflation below 3% for a third straight month. This trend could influence the Federal Reserve's decision on interest rate cuts.
  

📉 Support Levels to Watch:

• 4907
  
• 4898 (Major)
  
• 4895 (Major)
  
• 4889
  
• 4881
  

📈 Resistance Levels to Watch:

• 4914
  
• 4918 (Major)
  
• 4925 (Major)
  
• 4936
  
• 4942-44
  

📅 Trading Plan for Friday:

• Bull Case: Focus on maintaining key support levels, especially above 4895, to foster continued upward momentum.
  
• Bear Case: Monitor for breakdowns below 4895, indicating a potential shift to a bearish trend.
  
• Strategy: Emphasize level-to-level trading around key support and resistance levels, adapting to real-time market conditions.
  

🛑 Disclaimer:

This analysis is for educational purposes only and is not financial advice. Market conditions are dynamic and subject to rapid changes. Consultation with a professional financial advisor is recommended before making trading decisions.