[Platinum Insights] (7.21.23)

Good morning. 

U.S. stock index futures crept higher on Friday, setting the Dow on track for its tenth straight day of gains. 

Morgan Stanley raised U.S. economic growth forecast for the year on a strong industrial sector and more public investment in infrastructure and expects a more “comfortable” soft-landing for the economy. 

Chinese authorities announced measures on Friday intended to help boost sales of automobiles and electronics with the goal of shoring up a sluggish economy, but the steps failed to impress investors who have been clamoring for stronger stimulus. Regions will be encouraged to increase annual car purchase quotas and efforts will be made to support sales of second-hand vehicles, said a statement on automobile consumption published by 13 government agencies including state planner National Development and Reform Commission. 

The U.S. Federal Reserve and the European Central Bank will meet next week, with both expected to raise rates again after their most aggressive monetary tightening cycle in decades. 

Economic data released this week showed initial jobless claims unexpectedly fell to a two-month low of 228K. On the other hand, retail sales, industrial production, housing starts and building permits disappointed. 

WTI crude futures are above $76 per barrel. Gold steadied around $1,970 an ounce while the yield on the US 10-year Treasury note hovered around 3.85%. Meanwhile, the yield on the US two-year note, the most sensitive to short-term policy moves, edged higher to 4.85%. 

This week in the Platinum Channel we have focused on the 200-day SMA. The 200-day SMA is significant for swing traders because it can help them to identify the long-term trend of an asset and to find potential entry and exit points. We also emphasize the utilization of stop losses. 

 It is important to set stop-loss orders to protect your profits. This will help you to limit your losses if the trade goes against you. 

Have a great weekend!