The rally in the U.S. stock market | 23 October 2020

#WTI:

U.S. crude stockpiles tumbled 3.8 million barrels last week after rising by just over 500,000 barrels the previous week, the Energy Information Administration said. The EIA also reported that distillates inventories plunged by 7.2 million barrels for the week ended Oct. 9 versus a slide of just 962,000 in the week to Oct. 2. Global oil inventories, which ballooned in the second quarter as fuel demand collapsed, are currently falling at a clip of around 3 million barrels a day. This is a positive signal for the oil market!

Trading recommendation: Buy 40.11 and take profit 41.56.

#SP500:

The Fed's balance sheet increased by $ 76.7 billion, to $ 7.151 trillion. Let me remind you that a week earlier the Fed's assets increased by $ 18.52 billion. This is a positive signal for the U.S. stock market. Positive retail sales statistics signal significant economic growth in the United States. Retail sales have bounced back above their February level, with the pandemic boosting demand for goods that complement life at home, including furniture and electronics. An aversion to public transportation has boosted motor vehicle purchases. Retail sales rose 5.4% on a year-on-year basis in September. Last month's jump in retail sales set consumer spending on a higher growth path heading into the fourth quarter, which will likely ensure that the economy continues to expand.

Trading recommendation: Buy 3485 and take profit 3550.

XAUUSD:

The White House and Congress are struggling to reach a deal on another rescue package for businesses and the unemployed. The government reported that new claims for unemployment benefits increased to a two-month high last week. This is a negative signal for the U.S. dollar and a positive signal for gold, since the assets have an inverse correlation with each other. Inflation levels remain weak in the eurozone, with September showing an annual inflation rate of -0.3%, lower than the -0.2% read in August. Core CPI slowed to a rate of 0.2% year-on-year in September, down from 0.4% in August. The continuing spectre of deflation remains a serious. Deflation in the world's second-largest economy has a negative impact on the value of precious metals.

Trading recommendation: range 1885 -1930.