In this week’s analysis, we are going to discuss the following markets

• Indices – S&P, Nasdaq, FTSE 100, DAX
• Cryptos – BTC, ETH, BNB
• Commodities – Gold, Silver
• Forex majors – EURUSD, GBPUSD, USDJPY

Indices show mixed results for 24-28 July 2023

Last week, the Nasdaq Composite experienced a slight decline as weak economic data exerted bearish pressure on tech companies’ stocks. The S&P 500 also faced concerns over global growth prospects, leading to a slight downturn. The FTSE 100 saw a decline with mixed stock results. However, the German DAX stood out by rising 1.42%, defying expectations amidst weak manufacturing PMI. This rise was primarily driven by positive GDP figures and strong investor confidence in German companies.

USA Indices

Nasdaq Composite

During this week, the Nasdaq experienced a slight decline due to weak economic data affecting the sentiment of technology companies. Manufacturing data from both Europe and the US had a negative impact on its price and constituent stocks. Germany’s manufacturing PMI for July dropped to 38.8, while the S&P Global/CIPS UK Manufacturing PMI decreased from 46.5 to 45. Additionally, the slowdown in the US Services PMI suggested a potential decrease in demand for products and services within the Index. However, the positive CB Consumer Confidence reading in the US (117, up from 110.1) helped limit the Nasdaq’s fall to only 0.22%.

Now, let’s delve into the performance of some key stocks in the Nasdaq Composite for a clearer view. Google started the week at 121.93 and ended on Friday at 129.87, indicating an increase. Meta rose from 295.78 to 311.71, while Amazon declined from 130 to 128. Overall, the index saw mixed results, with some stocks showing an upward trend and others entering the bullish territory. Despite the bearish fundamental sentiment, the Nasdaq Composite managed to limit its decline to just 0.22%.

The S&P 500

The S&P 500 index faced concerns about global economic growth prospects due to lower-than-expected Manufacturing PMI numbers in Germany, the UK, and the US. Germany’s manufacturing PMI for July dropped to 38.8, below both the forecast and the previous month’s figure (40.6). The US Services PMI also declined from 54.4 to 52.4, adding further downward pressure to the index. Although the positive CB Consumer Confidence reading from the USA (110.1 to 117) provided some support, it was overshadowed by weak PMI data, resulting in a slight decrease of 0.14%.

As for the stocks, Microsoft (MSFT) opened at 345.85 on Monday but declined to 330 on Friday. Apple’s price remained within the 193 range, showing a sideways market. Nvidia, on the other hand, showed bullish returns, rising from 447.31 to 459.00, while Tesla traded sideways, going from 255.85 to 255.71. Despite bullish opening prices for these stocks on July 27, they ultimately fell to the displayed prices by the end of the trading day.

FTSE 100

The FTSE 100 index experienced a decline due to its significant exposure to international markets and global economic concerns stemming from weak Manufacturing PMI data in Germany and the UK. Stocks within the index showed mixed results, with Centrica plc rising from 126.55 to 134 on Friday’s opening, and Barclays falling from 161.16 to 153. Lloyds Banking Group slightly declined from 45.49 to 44.87, NatWest Group’s stock fell from 249 to 237, Vodafone rose from 74.5 to 76, and Rolls Royce Holdings surged from 154.50 to 188.90. Overall, the mixed results pointed to weak overall fundamentals, resulting in a slight decline of 0.21% for the FTSE 100 on July 28th.

DAX

The German DAX index stood out with an impressive 1.42% rise despite weak manufacturing PMI numbers in Germany. Several factors contributed to this performance. The ongoing conflict between Russia and Ukraine led to increased sensitivity among European investors, with hopes for potential talks sparking some optimism. Additionally, Germany’s GDP figures showed improvement, with a smaller contraction of -0.2% in the second quarter compared to -0.3% in the previous quarter. This positive economic data, coupled with a bullish German stock market, boosted investor confidence in the German economy and the DAX-listed companies. Major constituent stocks like SAP SE, Siemens, Deutsche Telekom, Mercedes-Benz Group, and Merck KGaA showed varying price movements, contributing to the DAX’s overall success.

Indices technical weekly performance numbers (USD)

Cryptos Witness Volatile Week for 24-28 July 2023

Cryptocurrencies experienced their characteristic significant price swings throughout the week. BTC initially fell but later began to recover, driven by bullish news from Japan and BackRock’s “digital-first” offerings in India. Ethereum followed a similar pattern as BTC, but it closed the week with a modest 1.48% loss. BNB showed resilience with only a 0.77% decline, benefiting from Binance’s dominance in the crypto exchange scene.

BTC

The leading cryptocurrency opened the week at 30k, briefly dipped to 29.1k on Monday, and then gradually recovered to 29.2k on Friday’s opening. Cryptos are known for their continuous 24/7 trading and volatile price swings. After the bearish opening, the news turned bullish for Bitcoin, particularly with Japan’s prime minister promoting Bitcoin and crypto adoption, and BlackRock offering “Digital-First” solutions in India, boosting positive sentiment. However, a major hit to the market came with the news of the Financial Stability Board (FSB) finalizing a global regulatory framework for crypto-assets and stablecoins, causing a brief decline before the recovery.

ETH

Ether followed a similar trajectory as Bitcoin but on a smaller scale. It experienced a dip on Monday but quickly started to recover, currently sitting at around 1860 levels. As the second most popular cryptocurrency by market capitalization and popularity, Ether was influenced by the news of FSB finalizing the global regulatory framework for crypto-assets. Despite this, there were no major impacts from fundamental forces on crypto assets, including Ethereum. Ethereum’s strong developer base ensures continuous development and addressing of any issues. Although it recovered, it still closed the week with a 1.48% loss, which may be significant for traditional assets but is relatively minor in the volatile crypto market.

BNB

BNB showed its resilience once again, being the least affected by bearish events. This is attributed to Binance’s dominance in the crypto exchange scene. BNB serves as the main digital currency for Binance Smart Chain, a blockchain powering the exchange and its crypto infrastructure. As a result, BNB only experienced a slight decline of 0.77%, which is considered minuscule in the highly volatile crypto market, known for extreme price fluctuations in double-digit percentages.

Crypto technical weekly performance numbers (USD)

Gold and Silver under bearish pressure for 24-28 July 2023

The strong US dollar had a negative impact on both gold and silver. Gold, being the number one precious metal, lost 1% of its value, while silver showed more resistance with only a 0.74% drop. The higher US advance GDP at 2.4% compared to the previous 2%, along with declining unemployment claims of 221k (lower than expectations and the previous 22.8k), contributed to the strength of the USD against other currencies. This led to a nearly 1% decline in the price of gold throughout the week. Furthermore, the FOMC’s decision to increase rates by 0.25% added to the bearish pressure on precious metals.

Gold

Gold is highly sensitive to the strength of the US dollar, and positive and stable news for the USD tends to weigh on gold’s value. With the US advance GDP exceeding expectations at 2.4% (compared to the previous 2%), and declining unemployment claims at 221k (lower than expected and the previous 22.8k), the USD gained strength against other currencies. Consequently, the price of gold experienced a significant decline of almost 1% from Monday to Friday this week. Additionally, the FOMC’s decision to raise interest rates by 0.25% further contributed to gold’s decline and bolstered the bullish sentiment for the dollar index.

Silver

Like gold, silver is also influenced by the strength of the US dollar. As the USD gained strength due to positive economic news, silver faced similar challenges but displayed more resilience with only a 0.74% decline in value. Positive economic news for the USD tends to negatively affect silver’s price, as precious metals are considered safe-haven assets during times of dollar decline. Investors may reallocate their portfolios from gold and silver to the stronger USD, putting downward pressure on precious metal prices. The FOMC’s decision to raise interest rates by 0.25% also contributed to a bullish USD and bearish sentiment for both gold and silver prices.

Commodities technical weekly performance numbers (USD)

Forex Pairs swing lower for 24-28 July 2023

The ECB’s interest rate hike solidified the Euro (EUR), while weak manufacturing PMI and relatively bullish US data weakened the British Pound (GBP). However, the Japanese Yen (JPY) remained strong, gaining 1.66% against the USD due to the Bank of Japan’s yield adjustments and lower inflation rates.

EUR/USD

The European Central Bank (ECB) raised interest rates from 4% to 4.25%, which boosted the Euro and caused EURUSD to decline by 1% in the past few days. Although the US GDP for Q2 exceeded expectations at 2.4% (compared to the previous 2% and expected 1.8%), the bullish news from the USA couldn’t counter the impact of the ECB’s interest rate hike. Interest rate adjustments are strong indicators of inflation and currency strength, making the EUR more attractive to investors. It may take some time before the increased interest rates lead to lower inflation rates for the Euro, but investors still reacted very positively.

GBP/USD

The UK’s manufacturing sector slowdown, indicated by the weak Manufacturing PMI reading of 45 (compared to the previous 46.5), coupled with relatively bullish data from the USA, resulted in the weakening of the British Pound (GBP). Consequently, it took fewer dollars to buy 1 pound, as the USD exhibited strength against other currencies during the week.

USD/JPY

Despite the dominant performance of the US dollar throughout the week, the Japanese Yen (JPY) managed to hold its ground and even strengthened by 1.66% against the world reserve currency. The Bank of Japan maintained the band around the JGB 10-year yield with a range of +-0.5% and targeted a yield of about 0%. As a result, USDJPY quickly fell but later started to recover some of its losses. Additionally, recent inflation data indicated that Japan’s inflation rate was lower than the rest of the world at around 2%, contributing to the Yen’s strength against the dollar.

Forex technical weekly performance numbers (USD)

Performance Comparison Chart of $1000 investment

How much money would you make or lose last week if you were to invest $1000 in each of the sectors discussed above? 

We will pick the winning asset from each sector and compare its performance with the flagship automated trading system from Elite CurrenSea called the Portfolio Flagship. Elite CurrenSea offers a wide range of trading systems and portfolio management solutions, and Portfolio Flagship is its current bestseller. This system has been tested on real markets and is showing consistent returns. What’s more exciting is that Portfolio Flagship’s results have been verified by real results on real accounts which we will discuss in more detail below. 

Portfolio Flagship Trading System Shines on Live Accounts for 24-28 July 2023

Portfolio Flagship is a solid performer with 1.65% gains in the past 5 days.

Let’s see the $1000 investment potential results for the past week.

As we analyze the recent performance, it’s evident that Portfolio Flagship emerged as the top performer, showcasing impressive gains of 1.65% over the last 5 days. Following closely, Indices secured the second spot with a notable 1.42% rise, while investing in Forex resulted in a moderate loss of 0.4%. Moreover, commodities experienced a decline of 0.74%, and cryptocurrencies saw a slight decrease, shrinking the investment by 0.77%. The Portfolio Flagship system has been performing consistently well with steady profits over the past months. Every single week, while other assets are showing mixed results, the automated system shows persistent gains. 

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Historical Drawdown:

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Asset Types:

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