Major tech stocks such as Apple, Tesla, Microsoft, and Intel all jumped by over 2% in Monday trading helping to drive the beleaguered NASDAQ up over 162 points. Despite increased investment in Treasury Bonds and only slight increases in the Dow and S&P, many investors are finding significant value in the current tech stock price levels.
Asian markets fared far worse in early Tuesday trading with the highly anticipated Baidu Hong Kong IPO falling flat. Hong Kong’s Hang Seng Index is currently down over 600 points with no clear reversal in sight although the Asian Composite Index is holding its ground with little movement.
Currencies & Commodities
The NASDAQ rallied yesterday, but has slid a bit in early trading today. We see this slide as temporary and anticipate more gains as European and North American sessions open later. Look for the NASDAQ to make a run at 13,100.
Gold has found some momentum today and will likely climb higher with some of the economic uncertainty in Europe and other places around the globe. Look for it to make a run at the 1750 level before stalling.
EUR/USD recovered yesterday as we forecasted, and we think this trend will continue today at least until the 1.195 level. However, keep an eye out for the pair losing some momentum.
EUR/GBP hit a ceiling at 0.862 again and began its decline. While it has shown some bullish pushback, we believe that it will continue to fall today towards the 0.859 range.
NZD/USD went into freefall yesterday and today, but it appears to have some support now. We see a healthy bounce occuring on the pair in the next several hours towards the 0.71 level.
Summary: Tech stocks rally along with the NASDAQ while Asian markets and Hong Kong IPOs fall flat.
Netflix surged yesterday following several popular analysts picking the stock the do well. Unfortunately, there just isn’t enough value or return on investment currently for the streaming service to hold such a high price. Look for Netflix to decline toward the 510 level today.
AMD experienced a nice rise over the last couple days, but has peaked and begun a trend reversal. We see a moderate drop in price today stopping just short of the $78 level.