The bullish rally on the U.S. stock market | 14 February 2020

XAUUSD:

We are expecting the development of a bearish rally in the precious metals market. The latest U.S. employment situation report from the Labor Department showed the key non-farm payrolls figure came in up 225,000, compared to the expected 166,000. This is a positive signal for the U.S. currency and a negative signal for gold. The spread of the coronavirus epidemic could be slowing down and as some big businesses resumed work in China after the Lunar New Year holiday. Workers began trickling back to offices and factories around the country as the government eased some restrictions on travel in the wake of the epidemic. This is bad news for gold.

Trading recommendation: Sell 1574 and take profit 1558

#SP500:

Positive macroeconomic statistics will have a positive impact on the capitalization of major American corporations. Nonfarm payrolls for the month rose by 225,000, up from a rise of 145,000 in December. This was well ahead of the expected 166,000, according to economists’ forecasts. Average hourly earnings, a measure of wage inflation, rose 0.2% in January, and were up 3.1% year on year. This was well ahead of the expected 3%, according to economists’ forecasts. A positive release on the labor market signals economic growth.

Trading recommendation: Buy 3221 and take profit 3259

#WTI:

Good and bad news for the oil market. Workers in China travelled back to offices and factories around the country after the extended Lunar New Year holiday. The Chinese government has pledged $10 billion to help fight the virus while the People’s Bank of China moved to keep liquidity ample through reverse-repurchase agreements. This is positive news for the oil market. Russian Energy Minister Alexander Novak stalled in giving his government’s assent to suggestions from OPEC that the group and its allies would cut an additional 600,000 barrels per day in supply. He noted that Moscow needed more time to assess the situation, adding that U.S. crude production growth would slow and global demand was still solid. This is a negative factor for oil.

Trading recommendation: range 49.80 -52.00