Market Analysis:
Last night’s trading session was influenced by the unexpected strength of U.S. non-farm payroll data, causing black commodity futures to open higher and rally with reduced positions and increased volume.

Key observations include:

  • The U.S. Dollar Index surged sharply.
  • U.S. equities declined.
  • The Chinese Yuan faced renewed depreciation pressure.
  • Commodities like crude oil, gold, silver, and base metals saw upward momentum, along with iron ore.
  • U.S. Treasury yields declined, reflecting heightened market risk aversion.

This movement represents a typical reaction to external events. We estimate the impact of this data-driven rally will last for approximately two days, after which the market is expected to revert to its fundamental trajectory.

Outlook and Strategy:
From our perspective, a short-term downturn might create a stronger foundation for subsequent sustainable upward movements. Commencing a steady uptrend now may be premature.

  • Key Level to Watch: A decisive breakout above 3290 would signal the end of the downtrend and the start of a rebound rally.
  • Action Plan: Current conditions suggest caution—long positions may be premature, while short positions face short-term disruption. It’s advisable to remain on the sidelines for now, maintaining a patient and observant stance.

Detailed operational strategies will be shared in next Monday’s morning brief.

📌 Daily insights provided by LangZo Steel. For reprints, please credit LangZo Steel.