All eyes on the Jackson Hole Symposium, Goldman set to make its move and Bitcoin on a rampage

 All eyes on the Jackson Hole Symposium, Goldman set to make its move and Bitcoin on a rampage

All eyes on the Jackson Hole Symposium, Goldman set to make its move and Bitcoin on a rampage.

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The markets managed to close the week out positively, as we saw the Nasdaq, Dow and S&P all close the day higher, recovering a substantial amount of the week’s selloff. Investors remain vigilant in the bull market as vaccination rates continue to increase despite the Delta variant risk. The European markets followed suit as the US Indices dragged the Dax and FTSE higher.

The precious metals remain stable as both Gold and Silver consolidate around important levels with the impending Jackson Hole Symposium on Thursday. A vast majority of Economists are in speculation surrounding tapering set to be hinted at during the event. We might very well get a hint at Mortgage-Backed Securities that might be tapered however focus will still be on next months FOMC.

The crypto market has gained traction again following the London Fork, Bitcoin and Ethereum opened up well for the week as both made recent highs however both alternative assets are still some way off their previous highs.

All eyes will be on the Jackson Hole Symposium this week as there is a growing expectation from economists that the Fed may very well be looking to announce the possibility of asset purchase tapering. During last week’s meeting minutes, the Fed stated that tapering may very well be set to start this year. Following FOMC that came across dovish, the meeting minutes did give us an indication that they will be more aggressive on their asset purchasing before a rise in interest rates will be considered. With the economy returning to pre-COVID levels as the unemployment rate is on the decline, the major concern is still if inflation is still transitory as the Fed claims it to be.

US Stocks:

Friday’s Movers

  • Spotify Technology (SPOT) was up 5.64% as they announced a $1 billion share buyback program
  • Hallo Group (MOMO) was up 5.27%
  • NVIDIA (NVDA) rallied 5.14% as Earnings and Revenue came out higher than expected
  • Nikola (NKLA) was up 3.85%

Stock to watch:

Goldman Sachs (GS)

The bank exceeded earnings and revenue expectations during the previous quarterly earnings to see price rally from $350 to $416 over the coming month. With a pullback back down to $395, there could be possible buying opportunities lining up as earnings are set to be released midway through next month. At the time of writing Goldman Sachs was up 1.04% in the pre-market.

Goldman boosted their European presence as they entered an agreement with NN Investment Partners for $1.9 billion. The acquisition was aimed at broadening their footprint in Europe as the asset manager has $355 billion assets under management and $70 billion assets under advice.

With strong earnings and revenue growth to support sustained growth for the largest bank in America the technicals are lining up well as well as price retraced back down to its 50EMA, testing previous highs of $391.51, there could be more downside to $385 before the price bullish price movement will come into effect, however, a break above the 20EMA should see us make new highs.

Zander van der Merwe

Zander van der Merwe is a Commerce graduate with majors in Economics from the University of Pretoria with an intense passion for the financial markets. My general focus is to look at the markets holistically combining strong Fundamental views with the incorporation of Technical analysis in the sphere of the United States stock markets, indices, commodities as well as the new kid on the block: cryptocurrencies. I incorporate this very strongly with my value add to the TD Markets team to ensure that clients are being given the transparent and in-depth view of the markets that is imperative to a career in trading. I am also a writer and market analyst at TD markets

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