10 August 2020: US market and Precious Metals -Part of newsletter sent

Part of Newsletter sent on 10 August 2020

US Stock Market

Today, the trend may be flat to bearish for the equity market. Key levels from Friday (Close| Low):

• DOW: 27357 | 27107
• S&P500: 3347 | 3322
• NASDAQ: 11131 | 11036
• RUSSELL: 1568 | 1531

On Tuesday & Wednesday, trend is bullish. On Thursday, it’ll be Mars square Pluto wherein correction is possible. On Friday, the trend is again supportive. Major trend reversal is expected from 17^th August 2020. This may continue for next 1 month (especially around the end of August 2020, a sizable correction is possible). S&P500 has support at 3320-3300. In this week, it may move up to 3390-3395. You can buy call options today for target 3390-3395. NASDAQ may cross 11300 with support at 10900. You can buy call options in Nasdaq. DOW has support at 26900. It may move up to 27900 in the current week.

You can accumulate following stocks in US market at lower levels today:

• AAPL
• AMZN
• BA
• MRNA
• FB
• NVAX (Earnings to be announced today, buy at opening)
• CSCO
• HD
• UNH
• SPG (Earnings to be announced today, buy at opening)

We were long in Berkshire Hathaway from the previous week at 200. It closed at 209.48 last Friday. The earning numbers have been better than expected.

Precious Metals

In the previous week, Gold Dec contract made a high of 2089 and observed a correction. Closing was at 2028. Gold Dec contract has support at 2002 and resistance at 2092. Silver Sept made a low of 27.45 and high of 29.91 on Friday.  It closed at 28.40.

Today, bullion may behave slightly weak. From 11^th to 14^th August 2020, trend is favorable for precious metals. Previous week’s high for bullion may be crossed. It is advised to book profit in long position by 14^th August 2020. What will happen after 14th in precious metals?