SP500 LDN TRADING UPDATE 21/01/25
WEEKLY BULL BEAR ZONE 6070/80
WEEKLY RANGE RES 6119 SUP 5945
DAILY BULL BEAR ZONE 5995/85
DAILY RANGE RES 6074 RANGE SUP 5990
TODAY'S TRADE LEVELS & TARGETS
LONG ON ACCEPTANCE ABOVE BULL BEAR ZONE TARGET WEEKLY RANGE RES TARGET
SHORT ON TEST/REJECT WEEKLY RANGE RES TARGET WEEKLY BULL BEAR ZONE
SHORT ON ACCEPTANCE BELOW DAILY RANGE SUP TARGET WEEKLY RANGE SUP
LONG ON TEST/REJECT OF WEEKLY RANGE SUP TARGET DAILY BULL BEAR ZONE
YOU CAN REVIEW WEEKLY ACTION AREAS & PRICE OBJECTIVE VIDEO HERE
GOLDMAN SACHS TRADING DESK VIEWS
We experienced a relief rally following the CPI report. Sentiment appears too low for a significant sell-off, and I'm inclined to buy into any weakness caused by tariffs early this week. Interest rates remain a challenge, and despite more favourable inflation, the underlying growth conditions, fiscal situation, and mechanical bond supply suggest that yield curves may remain steep and term premiums extended. This situation places a figurative limit on equity multiples, while the primary source of returns will need to come from cyclical earnings growth, leading to outperformance in cyclical over defensive stocks. Aside from the inauguration, this week is relatively quiet for both micro and macro events (with the exception of the BOJ), and my bias is to take advantage of weakness in industrials and financials. I see potential in emerging markets and the dollar, and the true test for the markets will arrive next week with the Mega Cap earnings reports—can we maintain our position in light of a stronger dollar, capital expenditure demands, and slower earnings growth?
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!