Top Trade Ideas - June 5th

As your personal investment analyst, we strive to bring you informed decisions. After a thorough market review, here are our top watches this week.

Last week was a repeat of the week before. Although a four-day week, we still had heavy tech buying in the last two days. This meant Nasdaq reached a 52-week high, and the S&P 500 closed at 9-month highs.

We don’t think the tech rally is over, but we do think it could cool off soon. A great chart was posted by a friend of the company, Jake Wujastyk. This chart shows the extension of the rally with a MACD Crest. This doesn’t indicate a pure reversal, but we could see slower action across the coming weeks. You can find the tweet and Jake’s Twitter account here.

Where do we think the rotation will go? The Russell and Dow.

In FX, we had a very rangebound week. The breakthrough regarding the US debt ceiling had little follow-through reaction in the G10 space. We did get some EUR weakness and volatility in the EM space (TRY, ZAR), but until Payrolls hit on Friday, it was a fairly dull week.

Post NFP, we saw strong USD buying, although we’re cautious about chasing this move into the new week.

For the week ahead, we have analysed how the markets closed last week and where we think the next moves will be. If you are not a premium subscriber, you can sign up for seven days free by viewing this post from our site.

5 equity, 3 FX and 2 indices ideas below.