Bullish rally on the U.S. stock market | 10 июля 2020

XAUUSD:

A bullish rally in stock markets will have a negative impact on the value of gold. The gap between the S&P 500 dividend yield and the 10-year Treasury yield in March hit a high not seen since at least the 1970s. Currently, the S&P 500's dividend is nearly 1.85%, compared with the benchmark 10-year U.S. Treasury's 0.665% yield. The series of rapid interest rate cuts by the Federal Reserve has taken U.S. Treasury yields to near zero, sending market participants further afield in search of steady payouts. This is a positive signal for the stock markets. Gold and the American stock market are inversely correlated.

Trading recommendation: Sell 1788 and take profit 1768

#WTI:

As long as the Federal Reserve is still buying assets and prepared to do more the oil bulls to dominate market over the coming quarters. The asset purchase programs can promote accommodative financial conditions by putting downward pressure on term premiums and longer-term yields. This is a positive signal for oil prices! U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a ninth week. The U.S. oil and gas rig count, an early indicator of future output, fell by two to an all-time low of 263 in the week to July 2, according to data from energy services firm Baker Hughes.

Trading recommendation: Buy 40.25 and take profit 41.56

#SP500:

We are expecting a bullish rally on the U.S. stock market to develop! The U.S. Labor Department said nonfarm payrolls rose by an estimated 4.800 million in the month to mid-June, compared to an average forecast ahead of time of 3.000 million. Over 3 million of the 4.8 million jobs added were in the retail, leisure and hospitality sectors. The U.S. economy created jobs at a record clip in June as more restaurants and bars reopened. The data also showed the unemployment rate falling to 11.1% from 13.3% in May. This is a positive signal for the American economy!

Trading recommendation: Buy 3166 and take profit 3201