A moderately bullish open is expected across all indices. These are the factors to consider:
1- The fact that the bonds are going down is considered positive for the stock markets. For there is less fear of the discount that the growth ceiling and weakness bonds seem to carry out and the danger of great economic impact from the virus through the new delta variant.
2- It still seems to us that the quant are the ones that best explain the real strength of the market, which seems to come from the huge hedges that strong hands have. Since they are covered, they do not join the sales when they appear and it is a vicious cycle.
3- The fact is that the SP 500 is once again stuck to large resistors. Very difficult level at 4,400 and if it happens it could escape to the ceiling of the bullish channel at 4,500 but higher it seems mission impossible for the moment. That might be a good area for hedging or taking benefits for now.
4- Bank of America has commented that during the week 8,400 million have entered bond funds, 4,800 in cash, 3,300 million in the stock market and in exchange for the gold funds, 1,000 million have come out. Gold does not work as a hedge against inflation or anything, it seems to have a huge dependence on the dollar as the predominant factor, moving in reverse.
5- 87% of SP 500 companies are giving better results than expected, which is well above the average, although the reception is being somewhat cold.
6- Twitter and Snap gave good results after the close and are up strongly in the pre-opening, while Intel put the problem of the bottleneck with the chips above the average and has problems.
7- Slowly many operators start to go on vacation, this is a factor that we will have to count on shortly, the volume will be lower and it will be easier to move to the market.
8- American Express Co gained 3.6% and was expected to open at an all-time high as the credit card issuer beat second quarter earnings estimates
9- Interesting this quote from . on current market sentiment:
“Earnings are expected to be much better for value than for growth, but with interest rates as low as they are, investors will stay in growth because that way short-term momentum is on their side,” Sam Stovall said. , chief investment strategist at CFRA Research in New York.
10- The fact is that money continues to enter the Nasdaq that eye is at this time glued to the psychological resistance zone of 15,000. It is the third time that he is going to strike against this psychological level, in the two previous ones they put big papers on him, which ended up infecting the rest of the indexes. Already during the day it has touched 15,015 and from there it has been rejected. That level is vital, operators fear that it could happen like with the 14,000 that took a long time to pass, although you never know with these things.
11- General Motors: Recalls 68,667 Chevrolet Bolt electric vehicles worldwide
-Due to fire hazards that were previously called for review in November
12- El-Erian de Allianz says that inflation will not be transitory and that the FED may wait until the end of the year for tapering
Jose Luis Carpathians