Market Review 12-10

Market Review 12-10

Trader sees a perfect ‘buying opportunity’ for Amazon

By Annie Pei

It could be the best chance this year to buy Amazon, said TradingAnalysis.com founder Todd Gordon.

The tech giant is sitting in a correction, down more than 10 percent from its recent high on Sept. 4, but Gordon says there’s a key technical level that has him betting on an Amazon bounce back.

“Amazon has pulled back into support with this overall market volatility, but I see it as a buying opportunity,” he said Tuesday on CNBC’s “Trading Nation.”

According to Gordon, Amazon is looking oversold. On a year-to-date chart of the stock, he said that Amazon has pulled back to an uptrend support line that had been in place since February. And given that Gordon believes the bottom is in for tech and consumer discretionary stocks, which have fallen 3 percent and 4 percent this month respectively, he sees Amazon bouncing from that support line.

Amazon is expected to report earnings at the end of the month, and Gordon is using that date and targets levels around the $1,860 to $1,870 area.

https://www.cnbc.com/2018/10/10/trader-sees-a-perfect-buying-opportunity-for-amazon.html

 

Gold climbs to 3-day tops, inching back closer to $1200 mark

By Haresh Menghani

Gold prices edged higher for the third consecutive session on Thursday and built on its goodish rebound from over one-week lows, set on Monday.

A combination of supporting factors helped the precious metal to reverse an early dip to $1191 area and continue gaining positive traction through the early European session.

The global flight to safety, triggered by the ongoing rout in equity markets, underpinned the commodity’s safe-haven demand. The risk-off mood was further reinforced by a steep fall in the US Treasury bond yields, which further benefitted the non-yielding yellow metal.

Adding to this, the US Dollar retreated farther from seven-week tops and provided an additional boost to the dollar-denominated commodity, lifting it to three-day tops and back closer to the key $1200 psychological mark.

https://www.fxstreet.com/news/gold-climbs-to-3-day-tops-inching-back-closer-to-1200-mark-201810110805

 

European shares hit 20-month lows as Wall Street rout sparks sell-off

By Danilo Masoni

European shares hit their lowest in more than 20 months on Thursday following a rout on Wall Street as jitters over rising U.S. Treasury yields and signs of slowing global growth sparked a broad selloff of risky assets.

Most sectors in Europe were trading in the red, with tech stocks bearing the brunt of early morning selling pressure after the big U.S. technology stocks that have been the driving force behind a multi-year bull market posted heavy losses overnight.

European stocks have been penalized by political turmoil and the region’s vulnerability to trade risks, while tax cuts, share buybacks and a booming economy have boosted U.S. stocks.

“We think that for this picture to turn around in favor of Europe we need to see a gradual rise in bond yields (providing support to financials) accompanied by signs the economy is not slowing and lower political risks,” he added.

Euro zone third-quarter earnings are expected to rise 12 percent, nearly half the 21 percent growth rate expected for the United States, according to Refinitiv IBES data.

European stocks have also been hit recently by worries over China and their exposure to emerging markets.

https://www.reuters.com/article/us-europe-stocks/european-shares-hit-20-month-lows-as-wall-street-rout-sparks-sell-off-idUSKCN1ML0T7

 

Alibaba Seen Falling 11% Amid Slashed Profit Forecasts

By Michael J. Kramer

Alibaba’s Group Holding Ltd. (BABA) has plunged by more than 33% from its 2018 high, and technical analysis suggests the stock may fall 11% further.

The bearish technical analysis and options betting comes as analysts continue to slash their earnings estimates.

The chart shows that the stock is trading around technical support of $142. Should the stock stay below that level, it could drop as low as $125. That would be a decline of about 11% from the stock’s current price of around $140.50.

Another negative sign is that momentum is still leaving the stock as measured by the relative strength index (RSI). Volume levels have been rising as the price has been declining, which suggests that there are more sellers in the stock.

https://www.investopedia.com/news/alibaba-seen-falling-11-amid-slashed-profit-forecasts/

 

AUD/USD reports gains despite the stock market drop

By Omkar Godbole

The AUD/USD is reporting moderate gains in Asia, despite the risk aversion in the stock markets.

Further, the risk aversion has hit the Asian shores. For instance, Japan’s Nikkei is down 4 percent, as risk aversion has pushed JPY higher across the board. Meanwhile, the Shanghai Composite has dropped to four-year lows.

The USD/CNY pair also rose to fresh two-month highs a few minutes before pressure. Still, the Aussie dollar is showing resilience.

Looking forward, the corrective rally in the Australian currency will likely gather pace if the resistance at 0.7130 is convincingly scaled.

https://www.fxstreet.com/news/aud-usd-reports-gains-despite-the-stock-market-drop-201810110244

 

Guggenheim upgrades McDonald’s, says restaurant revamp will send stock to $200 next year

By Fred Imbert

  • Analyst Matthew DiFrisco upgrades McDonald’s to a buy rating from neutral and issues a $200 price target, implying a 17.8 percent upside over the next year.
  • “The modernization efforts are designed to drive incremental customer visits and higher average check,” the analyst says. These investments should “help further McDonald’s global leadership atop the fast food category as digital mobile ordering continues to redefine convenience and personalization for the consumer.”

https://www.cnbc.com/2018/10/10/guggenheim-mcdonalds-restaurant-revamp-will-become-a-tailwind-in-2019.html

 

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