JP Morgan chart analyst says ‘higher highs, higher lows’ means S&P 500 headed for new record
By Michael Sheetz
The S&P 500 is less than 1 percent from a new record high, and one technical analyst believes the index will surge past the milestone due to recently subdued volatility.
The S&P 500 is now eyeing the January “all-time high after defending tactical support just below 2,800” points, Hunter said. He expects the index to reach about 2,950 as quickly as late summer or early fall, saying “sentiment readings we track have not yet achieved frothy levels that would cause concern for the health of the developing rally.”
Hunter also pointed to the S&P 500’s 50-day moving average and how it is rising as reason to remain bullish.
Alibaba Faces More Declines as Trade War Heats Up
By Michael Kramer
Alibaba Group’s (BABA) stock has risen by more than 130% over the past three years, easily topping the S&P 500’s rise by nearly three times. It appeared that little could stand in the way of Alibaba’s stock, driven by soaring revenue and earnings. But now, shares of the Chinese e-commerce company have found themselves right in the middle of the U.S.-China trade war, falling by more than 14% from their mid-June highs. Even worse, the stock is now facing an even further decline, by as much as 9% from its current price of $180.60, based on technical analysis.
However, despite all the negative trade worries, analysts have been unfazed when it comes to their price targets. Since April 27, analysts have upped their price targets on the stock by nearly 7% to an average of $238.35, more than 31% higher than the share’s current price.
It would appear that the rising trade tensions between the U.S. and China are having a negative impact on Alibaba’s stock. However, all the recent worries may quickly change to euphoria if the company can positively surprise investors when it reports quarterly results on August 23.
Pound Slips to Lowest Since November Versus Euro on No-Deal Fear
By Charlotte Ryan
The pound slipped to the lowest level against the euro in almost nine months amid growing concern that the U.K. could end up leaving the European Union with no agreement for future economic ties.
Sterling dropped for the third day versus Europe’s common currency and weakened against most of its Group-of-10 peers. U.K. International Trade Secretary Liam Fox said over the weekend that the risk of a no-deal Brexit had increased to as much as 60 percent.
“Sterling could fall to 92 pence per euro in coming months,” said Viraj Patel, a currency strategist at ING Groep NV.
Tesla short sellers walloped after Musk talks going private
By Claudia Assis
Investors betting on a Tesla Inc. slide faced a paper loss of more than $1 billion Tuesday after the stock rallied on Chief Executive Elon Musk’s going-private tweets and email to company employees.
Even as Tesla shares are up nearly 30% since last week, when the company reported second-quarter results that boosted the stock higher, shares shorted had not decreased “appreciably,” S3 Partners said, down only 316,000 shares, or less than 1%.
If markets believe that Musk has financing in place and the chances of a buyout are high, “we should see short covering in size, driving Tesla’s stock price higher in the short term as short sellers attempt to close out their positions at lower than the $420 takeout price,” the note said.
Musk midday Tuesday set the market ablaze with a tweet saying he was “considering taking Tesla private at $420. Funding secured.”
Tesla stock closed at $379.57, its highest since a Sept. 18 record high of $385.
Bitcoin, Ethereum, Ripple Analysis: Prices Slump amid Market Rout
By Nick Cawley
A sea of red in the cryptocurrency space after an announcement from the SEC that it was delaying a decision on a Bitcoin ETF (Van Eck/SolidX) for another month sent prices pinning lower. Yet the decision – purely procedural – was expected by many in the market, prompting questions over the severity of the sell-off. The cryptocurrency market has been weak across the board in recent days with support levels falling with ease and rebounds sold into.
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