On Monday, as usual, central banks early morning stock buying binge was triggered, and again, it got sold, Monday was no exception. Morning buy programs pushed the Dow, the S&P500 and Nasdaq to new high in the morning. After the early morning rally, NQ traded sideways to down the rest of the day.
With ever increasing amount of money creation by major world central banks the market should continue to rally for a while. The only surprise may come from the Fed minutes to be released on Wednesday August 17. If the Fed provide hint of an interest rate increase soon the market may sell off for a while but continuing central bank purchases of stocks should keep any market decline under control.
On the short term timeframe, NQ support has now climbed up to 4810.
-- Trading above 4810 should keep the current rally alive without a pullback down day. The next upside target is a new high.
-- If NQ break down below 4810 and stay down, we may get a pullback down day. The next lower support is 4790
Twelve days ago, Swiss National Bank made its quarterly filing with the U.S. Securities and Exchange Commission showing large positions in individual U.S. stocks.
In just five tech names, SNB held over $5.3 billion with $1.489 billion invested in Apple; $1.2 billion invested in Alphabet, parent of Google; $1 billion in Microsoft; $803 million in Amazon and $741.5 million in Facebook.
Both Apple and Microsoft are among the 30 stocks that make up the Dow Jones Industrial Average (DJIA), a heavily watched gauge of the U.S. economy’s health. The Swiss National Bank owns over $1 billion in two other names in the DJIA: $1.17 billion in Exxon Mobil and $1.032 billion in Johnson & Johnson.
