Bulls return, but momentum remains weak 19/11/2024

HOT stories for today

Stocks on the move:

• Bakkt Holdings (BKKT), the cryptocurrency trading platform soared 170% on news that Trump Media is in "advanced talks" to acquire the company, while $DJT shares rose 17%.  
• Robinhood (HOOD) shares jumped 8% after Needham upgraded the stock from 'hold' to 'buy,' citing expectations that regulatory changes under the Trump administration will enable new product launches.  
• CVS Health (CVS) shares gained 5% after the company added four new board members after negotiations with activist investor Glenview Capital.  
• Super Micro Computer (SMCI), the server maker, announced it has hired BDO as its new auditor and submitted a compliance plan to Nasdaq. The stock surged 37% in extended trading.  

Watchlist for today: WMT, LOW, MDT, FUTU, TSLA, NVDA, XPEV 

Markets & today's action:

• Asia-Pacific markets opened higher on Tuesday, following Wall Street's gains driven by a Tesla rally. Investors are also analyzing comments from Chinese financial policymakers at an investment summit in Hong Kong. Hong Kong’s Hang Seng Index rose 0.71%, and the mainland’s CSI 300 gained 0.31%. In Europe, markets ended Monday lower as investors focused on regional inflation data and Nvidia’s highly anticipated earnings later this week.  
• U.S. stock futures edged down Monday night, with Dow futures slipping 0.08%, S&P futures down 0.05%, and Nasdaq 100 futures off by 0.05%. Key economic data, including housing market reports and a speech by FOMC member Schmied, is awaited, along with earnings from Walmart, Lowe’s, and Medtronic, before the market opens.  

Bitcoin

• MicroStrategy Incorporated announced an ambitious plan to raise $1.75 billion through a private offering of convertible senior notes, reinforcing its dedication to Bitcoin investments. Bitcoin had a modest green day, rising 0.68% to a high of $92,594, forming a bullish flag pattern on the daily chart. Bitcoin derivatives and margin markets reflect strong bullish momentum, indicating resilience despite concentrated buy-side activity driven by MicroStrategy. The retest of the $88,700 level on Nov. 17 showed little impact, suggesting investors remain confident and are not rushing to sell on minor price dips. Meanwhile, XRP surged 4%, building on a weekend rally that propelled the token to a three-year high.
  Watchlist: Bitcoin: 85 000-95600, Ethereum: 3000-3250, Solana: 200-246

Forex

• The Japanese Yen (JPY) edged higher against the US Dollar during Tuesday's Asian session but lacked strong bullish momentum amid uncertainty over the Bank of Japan’s next interest rate hike. The risk-on sentiment, reflected in positive equity market performance, further limited the appeal of the safe-haven Yen. USD/JPY may continue to find support near the key 153.85 level, attracting dip-buyers.  
• The EUR/USD pair regained ground on Monday, rising 0.65%, but despite this near-term bullish momentum, it remains entrenched in a broader bearish trend. With another week of lackluster economic data, the Euro stays vulnerable to market-driven flows.  
  Watchlist: EUR/USD: 1.0496-1.0600, USD/JPY: 153.8-156.9

Basic Materials

• Gold is gaining attention as a hedge against potential Trump-era tariffs, with Goldman Sachs forecasting a strong rally by 2025. The bank expects increased demand for the precious metal from central banks and investors amid rising trade tensions and global uncertainty. Goldman predicts prices will climb to $2,943 per ounce by Q4 2025, representing over 12% upside from the current $2,615 per ounce.  
• Oil futures surged over 3% on Monday, reaching their highest level in more than a week. The rise followed President Joe Biden’s decision to allow Ukraine to use U.S.-supplied long-range missiles for deeper strikes into Russia, a key global crude producer. West Texas Intermediate crude for December delivery gained $2.14, or 3.2%, to settle at $69.16 a barrel on the New York Mercantile Exchange.  
  Watchlist: GOLD 2536-2650, US Oil: 66.20-70.00

The TEFS Analyst team wishes you a successful day!