The bullish rally on the U.S. stock market | 20 August 2021

#WTI:

OPEC has published a fresh report on the oil market. World oil demand growth expectations for 2021 remained unchanged from the previous month’s assessment. Oil demand is still estimated to increase by around 6.0 mb/d to average 96.6 mb/d. Total world oil demand is projected to surpass the 100 mb/d threshold in 2H22 and reach 99.9 mb/d on average for the whole of 2022. Economic activities are still projected to gain traction, supported by massive stimulus packages. OECD crude stocks stood 96.2 mb below the latest five-year average and 70.5 mb below the 2015–2019 average. In terms of days of forward cover, OECD commercial stocks fell m-o-m by 0.9 days in July to stand at 63.6 days. This is 12.4 days below June 2020 levels, 1.0 day below the latest five-year average, but 2.0 days above the 2015–2019 average. This is a positive signal for oil prices.

Trading recommendation: Buy 66.60 and take profit 68.81.

#SP500:

U.S. equity funds saw their third successive money inflows in the week to Aug. 13, boosted by strong second-quarter earnings, positive economic data and passage of an infrastructure bill. U.S. equity funds had attracted inflows worth $2.67 billion in the week. U.S. growth funds had inflows worth $1.1 billion after seeing outflows in the previous week, while outflows from U.S. value funds reduced sharply. Among sector funds, financial sector funds lured a net $1.4 billion, the biggest weekly inflow in over two months. This is a positive signal for the U.S. stock market.

Trading recommendation: Buy 4429 and take profit 4485.

#Ebay:

In Q2, on an apples-to-apples basis, all key business metrics met or exceeded expectations and revenue growth was driven by the acceleration in our payments migration and growth in advertising. Company announced it has completed the transfer of its Classifieds business to Adevinta in exchange for $2.5 billion in cash and a 44% equity stake in Adevinta, equivalent to approximately 540 million shares. With the transfer complete, the company updated its capital allocation plans for 2021 by increasing its estimated share buyback from $2.0 billion to $5.0 billion. “We remain relentlessly focused on accelerating our product innovation by harnessing the power of next-gen technology and creating a more seamless experience for sellers,” said Jamie Iannone, Chief Executive Officer at eBay.

Trading recommendation: buy 70.90 and take profit 74.10.