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Opportunity or Trap?

Every trend will have retracements and consolidations. Before reacting to short term price movements, ask yourself if it is an opportunity or a trap.


As of New York Close 23 Jul 2020,

  • Nasdaq retreated on concerns about a potential probe of Apple Inc, which knocked the wind out of the high-flying tech sector. Multiple U.S. states are investigating Apple for potentially deceiving consumers, according to a March document obtained by a tech watchdog group. Apple shares fell 4.55% and pulled the Dow, Nasdaq and S&P 500 lower. Though an ongoing matter, antitrust probe news on FAANG (“Big Tech”) weighed on market risk sentiment (more details below).
  • Antitrust Probes: Microsoft may find itself in EU antitrust regulators’ crosshairs yet again after U.S. workspace messaging app Slack Technologies Inc complained about the company embedding its workplace chat and video app Teams in its Office product. Apple and Amazon are also coming under the microscope of Italy’s antitrust authority in connection with their alleged pattern of preventing unauthorised parties from reselling products on Amazon’s sweeping online marketplace.
  • In other developments, weekly initial jobless claims increased by 109,000 to 1.416 million (consensus 1.285 million), China’s Global Times editor tweeted that China will likely announce countermeasures on Friday if they are forced to close the consulate in Houston, and Treasury Secretary Mnuchin said the GOP unemployment benefit plan will be based on 70% wage replacement.
  • Microsoft (MSFT 202.54, -9.21, -4.4%) and Tesla (TSLA 1513.07, -79.26, -5.0%) both reported better-than-expected earnings results, but the disappointing price action appeared to cause concern about similar reactions in Apple (AAPL 371.38, -17.71, -4.6%), Amazon (AMZN 2986.55, -113.36, -3.7%), Alphabet (GOOG 1515.68, -52.81, -3.4%), and Facebook (FB 232.60, -7.27, -3.0%) when they report.
  • The U.S. Federal Reserve facilitated another $2 million in emergency loans this week to U.S. businesses struggling to survive the virus fuelled recession, while its overall asset portfolio showed modest growth for a second week to hold above $7 trillion.




  1. Eurozone PMIs



Our market summary condenses the most important market events into a short read.

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