Risk-Off Rotation Crypto/Tech -> Utilities
Fundamentals:
+ Exposure to "Risk-Off" Utilities.
+ Biggest E.U nuclear power operator. (52% of E.U Nuclear power comes from plants run or used by EDF)
+ Need for upsizing given the Russia-Ukraine commodity constraints.
Opinion:
EDF is undervalued at its current price. As the situation with Russia deteriorates, as an energy partner; a "Risk-Off" idea, presents it-self. During times of recession, stagflation, cost of living crisis compounded by government's inability to further print to ease pressures due to the mishandling of the Covid crisis. The idea of hierarchy of needs is paramount. In difficult times, one may not pay rent, but he will pay for energy. Given there is no industry without energy, the idea behind green/clean at the cost of longer time frames; becomes prohibitive.(Main reason why E.U decided to consider Nuclear "Sustainable". dw.com/en/european-commission-declares-nuclear-and-gas-to-be-green/a-60614990 Instead, one can expect France; decades of expertise in Nuclear power generation to be highly in demand. It be by consulting on building of Nuclear power facilities across the E.U block or simply due to the sharing of market rated energy production via the EEX across the block.
As the FED continues tightening, sovereign debt figures keep rising. Taiwan and Ukraine are now hotspots for defense contractors. Within the Risk-Off context and taking into account the military sovereign debt money printer is reaching new highs; exposure to military contractors may be a good risk-off idea.
This is not intended or made to constitute any financial advice.
Notes on how I personally use my charts/NFA:
Each level L1-L3 and TP1-TP3 has a deployment percentage. The idea is to flag these levels so I can buy 11% at L1 , 28% at L2 and if L3 deploy 61% of assigned dry powder. The same in reverse goes for TP. TP1: 61%, TP2:28% and TP3:11%. If chart pivots between TP's, in-between or in Between Sell levels these percentages are still respected. I like to use the trading range to accumulate by using this tactic.
Just my personal way of using this. This is not intended or made to constitute any financial advice.
This is not intended or made to constitute any financial advice.
FED Macro Situation Consideration:
All TP's are drawn within the context of a return to FED neutral policy. I do not expect these levels to be reached before tightening is over.
NOT INVESTMENT ADVICE
I am not a financial advisor.
The Content in this TradingView Idea is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained within this idea constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All Content on this idea post is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the idea/post constitutes professional and/or financial advice, nor does any information on the idea/post constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the idea/post before making any decisions based on such information.
+ Exposure to "Risk-Off" Utilities.
+ Biggest E.U nuclear power operator. (52% of E.U Nuclear power comes from plants run or used by EDF)
+ Need for upsizing given the Russia-Ukraine commodity constraints.
Opinion:
EDF is undervalued at its current price. As the situation with Russia deteriorates, as an energy partner; a "Risk-Off" idea, presents it-self. During times of recession, stagflation, cost of living crisis compounded by government's inability to further print to ease pressures due to the mishandling of the Covid crisis. The idea of hierarchy of needs is paramount. In difficult times, one may not pay rent, but he will pay for energy. Given there is no industry without energy, the idea behind green/clean at the cost of longer time frames; becomes prohibitive.(Main reason why E.U decided to consider Nuclear "Sustainable". dw.com/en/european-commission-declares-nuclear-and-gas-to-be-green/a-60614990 Instead, one can expect France; decades of expertise in Nuclear power generation to be highly in demand. It be by consulting on building of Nuclear power facilities across the E.U block or simply due to the sharing of market rated energy production via the EEX across the block.
As the FED continues tightening, sovereign debt figures keep rising. Taiwan and Ukraine are now hotspots for defense contractors. Within the Risk-Off context and taking into account the military sovereign debt money printer is reaching new highs; exposure to military contractors may be a good risk-off idea.
This is not intended or made to constitute any financial advice.
Notes on how I personally use my charts/NFA:
Each level L1-L3 and TP1-TP3 has a deployment percentage. The idea is to flag these levels so I can buy 11% at L1 , 28% at L2 and if L3 deploy 61% of assigned dry powder. The same in reverse goes for TP. TP1: 61%, TP2:28% and TP3:11%. If chart pivots between TP's, in-between or in Between Sell levels these percentages are still respected. I like to use the trading range to accumulate by using this tactic.
Just my personal way of using this. This is not intended or made to constitute any financial advice.
This is not intended or made to constitute any financial advice.
FED Macro Situation Consideration:
All TP's are drawn within the context of a return to FED neutral policy. I do not expect these levels to be reached before tightening is over.
NOT INVESTMENT ADVICE
I am not a financial advisor.
The Content in this TradingView Idea is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained within this idea constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All Content on this idea post is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the idea/post constitutes professional and/or financial advice, nor does any information on the idea/post constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the idea/post before making any decisions based on such information.
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