Laundering scandal, battery day, UK and lockdown

22 בספט׳ 2020

The week for the US stock market started on a minor note. Not only because Friday close for Nasdaq below 11,000, which looked like a verdict to buyers (at least from the standpoint of the current market sentiments), but also because the International Consortium of Investigative Journalists (ICIJ) published the results of an investigation where JPMorgan Chase & Co., Deutsche Bank AG and several global banks have been involved in transactions flagged as possible money laundering. The total amount of these transactions exceeded $ 2 trillion over a nearly 20-year period.

As a result, the shares of the banks mentioned in the report fell (shares of Deutsche Bank AG fell more than 7.5%, and shares of HSBC Holdings Plc fell to a 25-year low). This fall created the necessary background for the general decline in the US stock market.

However, today Tesla may give reason for some optimism. Company on Tuesday is holding an annual meeting of shareholders timed to coincide with "battery day". Tesla as expected will announce details about its new type of battery cells. We will not be surprised by the growth of Tesla shares by the end of the day, but we believe that they are extremely overpriced.

As for other trading ideas, in the foreign exchange market it is primarily the sale of the British pound. The country is on the verge of a second lockdown, will increase the downward pressure on the pound. Over the past 2-3 weeks, the number of new infections in the UK has increased several times and the process is clearly becoming uncontrollable.

The dollar rose quite well yesterday by the end of the day, having tested the upper boundary of the Dollar Index mid-term range, which in itself is a reason for selling it. So, buy EURUSD today or sell USDJPY seems like a pretty good trading opportunities, as well as buy gold.