Dollar Drops, Gold and Silver up

 Summary of content for the week of  Jul 32:

1. Week 32 major indexes performance;
2. Week 32 US sector indexes performance;

3. US Dollar Index, Gold and Silver Price
3. Major indexes weekly charts of support and resistance levels;

U.S and Global

U.S stock extended the previous weekly gains, DJI played catch-up for the week and was the top performer index with 3.8% gain weekly. Nasdaq hit record new high and SPX just a throw stone away from its all-time high in Feb 2020. U.S economy added 1.76 million jobs in Jul, beating estimates, against negative sentiment on the stalled fiscal stimulus package and the heightened tensions between U.S and China.

Industrial and Financial outperformed. Market rotated to the more cyclical sectors such as Industrial(XLI) and Financials( XLF) from the big tech names in the previous week. Real Estate(XLRE) and Healthcare(XLV) lagged for the week.

USD, Gold and Silver. Dollar Index $DXY continues under downside pressure, mainly due to economic downturn, high level of government debt, and near-zero interest rates. Against the dollar index, Gold and Silver price rallied high. Gold hit a record of $2063 before profit-taking a bit, as investors worry that unprecedented government stimulus would cause a spike in inflation. Another precious metal that might play catch-up is Silver, which started rally since Jul to close at 28.4 this week, but still far away from its peak at 49.85 in 2011. 

China/HK

Mainland Shanghai Composite Index SSE up for 2nd week in a row after data lifted confidence in economic recovery. Technically SSE index has broken u major triangle formation and currently in 5-week sideways consolidation range with a bullish bias. HSI index appears much weaker, fell 4th week and still unable to clear 25000 resistance level. Increased on virus cases and Trump's attack on TikTok then WeChat in the week caused a knee-jerk selling of Wechat parent Tencent(700.HK) to 10% in one point and still down 5% after recovered about half of its loss on Friday. Tencent is the single most weighted stock in the HSI index. 

Singapore

STI dipped below 2500 support level in the week then rebound closed above it, the first week up after 4-week down streak. A good level to consider accumulate some good fundamental blue chips such as the three local banks. Refer to the major index weekly charts below.