U.S. markets had a calm session after the first part of the U.S. Labour Market report release. There were 281,000 of work places created in June, if not to mention farming, figures are much higher than the consensus of analysts who had expected 207,000. Today we’ll see the second part of the report: Unemployment Rate, Applications for Unemployment Benefits and other news on the Trade Balance as well as the Index of purchasing managers activity. Usually, we should wait for the trend to settle when there are such an amount of important news, because the first investors’ reaction may be false. U.S. Stock Exchanges will be closed on Friday because of Independance Day celebration.
S&P, Dow and Nasdaq closed near the highs after the strong day. Nevertheless, leading shares, that used to grow on the first day of July, either kept growing yesterday, but closed near the bottom, or erased all the growth and closed even lower. These are the first weak signals of the market’s rollback, because we are now in the second (or in the third as many traders may say) phase of the trend. In the first phase trend settled slowly but for sure, in the second the price has been accelerating as more traders recognize the trend, and in the thirs everyone already jumped into the train and made the trend unstable. Lots of technical companies have already showed an upward volatility: Netflix, Tesla, Apple, Google, 3D Systems, Twitter and others. I do not see any entry points here on the market, so I’m thinking of a down-trade. The selective approach is what we need here, because not all the charts and shares are the same. And some good plan with levels gives great dividends to a well-prepared trader.
Apple gave us two days of growth after the bear flag had been broken. But now we may see some kind of a slowdown. I’m still waiting for a new highs this year, but we may see some rollback before that happens. I’ve marked with arrows accumulation periods on the chart (when traders sell actively), distribution period (when the balance between sellers and buyers equals), and the period of fall (the balance has been completely changed). The price jumped off the previouse high of $94.07 yesterday, and a false high was formed as a result. My plan is to sell the trendline, and to break through the bottom of $93.20, medium-term objective of $92.37, which is 8 EMA.
Amazon kept growing in the first half of the day, after it had broken the consolidation on Tuesday. But they failed to hold up the growth and the price returned even below the previous high of $333.16, and stayed there till the closure. We may expect more sales if sellers can push the price below $331.16. Middle-term target is $328.43.
JP Morgan was doing great with yesterday’s plan. After the weak closure on Tuesday (the price jumped off the resistance of $38.00 and closed weakly), we had the second day of falling. The price closed below 21 EMA for the firs time in a month. I’ll look for Put opportunities below $56.82.
Gold managed to keep the resistance of $1331-$1332 and broke the support of $1325. Traders payd off their positions and it fell to $1320 after that. Some good controled 10-points movement down. If it stays below $1325, we may have more chances to see a rollback to $1306. Moving averages are also reversing down.