Federalreserve
DXY ShortDXY to 80! Is it possible you may ask? From a technical outlook DXY has finished an ABC pattern and was rejected at the .386 fib level. From a fundamental perspective the FED will be last in raising it's rates compared to the major Central Banks. We already see BOC and other majors reducing their asset purchases and plan to raise rates soon. I can see this move happening over the next 2 quarters
Analysis of the Federal Meeting todayThe meeting of the members of the Federal Reserve was held today at 17:30 Iranian time. In this post, we will analyze his speech and the direction of the market.
Remarks by Mr. Powell
US Federal Reserve Chairman Jerome H. Powell said in a statement today:
1- Inflation is expected to decrease
2- Trying to control inflation and employment
3- Reduction of inflation in the first half of 2022
4- Waiting for the debt limit to be lifted
Conclusions from Powell's speech:
The United States is working to boost trade and businesses in the post-corona era by increasing liquidity. This increases inflation by increasing liquidity
For this reason, increasing liquidity increases inflation and, due to the higher cost of using labor and consumer goods, creates a catastrophe (similar to Iranian policy) if left unchecked.
Mrs. Yellen's words
US Treasury Secretary Janet Louise Yellen said today that I would like to make a few points:
Waiting for the debt limit to be lifted
Failure to raise the debt ceiling would be a disaster
Market reaction to these negotiations:
The US dollar index (DXY) fell from 94.373 to 94.107, after which the gold and currency pairs on the right side of the US dollar entered an uptrend.
In the currency pairs that have reached the bottom, you can now expect an upward trend.
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FED interest rates and BTCFED has on the 22 of september that from november of this year onwards it will no longer inject as much liquidity into the market as it used to do, and it also announced that it will raise interest rates sooner than expected, further increasing the demand for US dollars, and theoretically reducing the price of bitcoin. The interest rates hikes will start on 2023, further impacting the price of bitcoin.
This only shows the high likelihood of decline in bitcoin prices in the future, but, right now, it could still try to rise to higher levels, and in the low probability that the FED managed to create inertial inflation, an even more agressive rise in prices in the future.
The objective of this idea in the end is to warn people that a change in fundamentals just happened, and that it will most likely negatively affect bitcoin prices.
In technical terms, it broke the uptrend that it formed from the corona crash, and could try to find support in the 2015 uptrend, but i would not want to see the 38k level broken, much less the 30k level broke, a break in the 30k level would unequivocally indicate the start of a bear market, and one that could last years like the 2017 bear market.
Last Attempt for Week 38 - GBPUSD BUYMy previous analysis and signal hit SL. Am giving GBPUSD a final shot this week.
With News release by Fed Chair Powell, we might just gain some bullish power (if and only if US inflation numbers are good).
Buy within the yellow box if price reverts.
PPPDirhams.
Disclaimer: This is just my idea. Am not liable for the end results if adapted by anyone. Trade cautiously as there are chances that you will lose your investment..
FX:GBPUSD
DXY BTC Inverse CorrelationDXY
- Historically DXY has been a inverse indicator to Bitcoin and every bull run that has happen.
- In 2017 DXY took a massive down trend while BTC pumped.
- In 2021 DXY took a massive down trend while BTC pumped.
Chart
- Textbook head & shoulders pattern playing out on the daily.
End Cycle Market ThesisThis is my end cycle market thesis.
I know you can't predict market tops or timing.
I'm just trying to include potential reactions to FED tapering and FED rake hikes in conjunction with an end to a long bull market run, Covid crysis and CBDC announcments.
US30Hey guys, just an update from my side since we had our FOMC statement and press conference by FED chairman Jerome Powell.
The FED hinted that they are positive that the US economy is growing stronger, "With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen. The sectors most adversely affected by the pandemic have improved in recent months, but the rise in COVID-19 cases has slowed their recovery.", even if it's not optimal but should grow as they contain the virus.
A vague directive was also alluded to regarding the monetary policy, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved.", this doesn't give investors the needed confidence to hold their long positions and we may see a continued downward movement and this is not a major sell off but a mere correction in the market.
They also alluded to the fact that they may start their tapering process soon (likely to have a timeline in the next meeting) "Since then, the economy has made progress toward these goals. If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted."
Taking this few points into consideration, I am still waiting for a retest of the broken structure as well as the order block that was left untested. I believe we will see a downward movement 33270 in the remaining half of the month into November. Out of the 10 most weighted components of the Dow on two we down and not significantly either (UNH -0.83% & AMGN -0.49%) and these two stocks are only 2 of 4 of the components that are down so it is important to be cautious when selling too. Keep the risk minimal!
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To read and interpret the statement for yourself please view it here: www.federalreserve.gov
This analysis does not constitute financial advise but rather an analysis & interpretation of financial instruments.
GUSH Long / Oil LongA lot happening this week with the fed meeting and someone with power somewhere running their mouth about what "ought to be". This is a relatively high risk trade long or short. To me inflation will prevail and we will likely see speculators continue to drive up commodity prices.
TQQQ Buying OpportunityPrice has pulled back from ATH of 153 to a major support of 127 and rallied back to 135 intraday.
I should not enter a long position until I have bullish confirmation that the uptrend is continuing.
Feds speak this Wednesday & Friday, if inflation is increasing at a faster rate than expected feds may begin to boost interest rates sooner then expected, if this happens it will have a negative effect on the market and possibly flush even lower.
What I See: Daily Chart
- Price Gapped Down & Pulled Back To 100 Day EMA (Yellow) Which Is Also Key Support Of 127 on Daily Chart & Wicked Off of It While Price Closed Directly on The Key Level Of 133.35 With Bears Still in Control
- We Have Seen A lot of Bear Momentum the Past 2 Days leaving us 2 possibilities Here...
1. Price Opens Above 133.35 Support & Rallies To 50 Day EMA (Blue) Acting as Resistance at The Same Key Resistance Of 137.50 Before Continuing Lower or Breaks Above the Key Resistance Of 137.50 & Continues Its Run
2. We Open Below the Support Of 133.35 & Continue Lower to Retest Support of 127 with a strong hold or possible break lower.
- Keep in mind gaps normal get filled especially in indexes & ETFs
- Fed Meeting on Wednesday & Friday meaning If Talks about raising interest rates sooner then expected is mentioned due to inflation that could have a negative short term impact on equity prices on the other hand if talks about holding interest rates stable due to inflation being controlled that could have a positive impact on equity prices.
The target no one believes. NASDAQ There too many factor playing out and 2021 the Q3-4. Printing more and more money to stabilize market. Wont last.
Too much devaluation of dollar would risk more to the ecnonomy. Money would become worthless and it will never be a hyperinflation again.
Dollar is already hovering around lows but still building upwards. As we seen in 2020 the dollar spike hard at crash of all the bond buying and selling of stocks.
In the greatest Pandamic of all time is the best year for big companies and worst for smaller ones. I proves big things are gonna come very soon. If you look
at all the insider trasaction of 2021 you can see Walmart, Facebook , Amazon, Google , Netflix and many more of the biggest shareholders selling of big profits.
Some every day and some every week. Tells they have fear and retail person have no clue. Time to call this move. The banksters did a massive move from highs with above 20% move
to the upside to liquidate retails marginal calls. Prices of Lumber sored most in history and crash this summer to its lows again. We had minus price in WTI and almost 80 in WTI after its lows.
Big things is going down and it will get a lost worse. Unemployment is still at its highs, what will happend when savings account and stockmarket will fail. 10x the 2008 is coming. By just looking
at the FED system and the debt. We know. By looking at insider trasaction. We know. By looking at technicals are all levels we are going to have a big Deflation/Recession to stabilize the currency of domination
and reset the economy to whats needed. Exit the market or do you placements. But dont get greedy for more upside.
Pound pushes above 1.38, GDP nextThe British pound has punched above the 1.38 level in the Thursday session. GBP/USD is currently trading at 1.3858, up 0.63% on the day.
After posting three straight days of losses, the British pound has rebounded strongly on Thursday. The US dollar is in retreat against the majors, despite a positive unemployment claims release earlier in the day. Claims fell to 310 thousand, down from 345 thousand a week earlier.
We'll get another look at US inflation data on Friday, with the release of PPI for August expected to indicate that inflation remains red-hot. The consensus stands at 6.5% (YoY) compared to 6.2% in July. The Federal Reserve continues to insist that the surge in inflation is transitory and has been reluctant to respond with a tightening of policy, fearing that the time is not ripe for a scaling back of QE. Still, more investors are sure to join the skeptics if inflation continues to remain at high levels in the final months of 2021.
In the UK, the markets will be treated to a data dump on Friday. The key events are GDP and Manufacturing Production. With the Delta variant of Covid continuing to hurt economic growth, July GDP is expected somewhere around zero, which could mean a small decline. Manufacturing Production is also expected to be sluggish with a forecast of 0.1% (MoM). We could see some strong movement from the pound, depending on the performance of these two releases.
There is resistance at 1.3924. Above, there is resistance at 1.3988, just below the symbolic line of 1.40.
On the downside, we have support at 1.3763 and 1.3666
S&P 500 Nears Top of Range Before Potential TaperThe S&P 500 has climbed for seven straight months. But it may face some near-term challenges as September gets underway.
The main pattern on today’s chart is the resistance line running along the highs since mid-April. Notice how prices have stalled once again at this area.
Next, consider the type of candles at the top of the range: August 31 and September 1 closed well below their highs of the day. The next two sessions had spinning tops, followed by another solid bar on Tuesday. That suggests a lack of conviction/price acceptance at the highs.
Third, MACD is turning negative. The 8-day exponential moving average (EMA) has also started to fall (see our custom script Moving Average Speed ). Notice how dips in the 8-day EMA preceded market drops at other times like mid-August and mid-July.
Finally, there’s something of a news vacuum with few major events (or earnings) before the Federal Reserve meeting on September 22. That could potentially keep buyers on the sidelines and allow a pullback if sellers get active.
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EURUSD Cooling OffEURUSD pushed ahead last week due to a poor U.S. jobs report. The problem with the jobs report is the Fed has to choose between unemployment or inflation to control. Since inflation has cooled off last month and the Fed insists its transitory, so will they reduce the pace of tapering or even delay it's announcement? This gives USD weakness. The issue this week is the ECB will not announce tapering on Thursday and the long positions on EURUSD from speculators may be closed or reigned in before then. With that in mind and the resistance to the left from a while back, we should see a retracement...
BTC's deadly H&S ☠️A very clear Head and Shoulders is visible in BTC's weekly chart.
📍If the neckline could not hold the price, it can be broken and the 3 TPs of the head and shoulders are shown further in the chart
📍 The first TP is the middle of the long-term regression channel which is around 25k and a very important price level and support zone.
📍 The latest fundamental NEWS aren't actually very positive either, as there are rumors that the institutional investors are looking forward to sell bitcoin in this price level
📍 Another very important factor is the DXY (Dollar Index Chart) which seems very bullish and we can assume that the crypto-currency may need a coll-off for the next bull-run
⚠️ corona-virus was another key factor which helped the crypto-currencies and helped them show their power, now when the vaccination is about to happen globally and the lock-downs have decreased vastly we can assume that the Bitcoin and other crypto-currecnies need to cool-off...
ALL THE STATEMENTS ABOVE ARE MY POINT OF VIEW
PLEASE DO NOT TAKE ANY LONG OR SHORT POSITION BASED ON MY ANALYSIS
Ask me your questions and or problems
I would be very happy to know your opinions
BTC/USD resist support long setup 4h INFLATION CORRECTED CANDLESDISCLAIMER: THIS IS THE SAME IDEA AS I POSTED EARLIER TODAY, HOWEVER CONSIDERING US DOLLAR INFLATION. PRICE VALUES ON THIS IDEA ARE RELATIVE AND SHOULD BE COMPLETELY DISREGARDED. ONLY THE SHAPE OF THE CANDLE MACROSCRUTCURE IS RELEVANT IN THIS IDEA, AND FOR LONG ENTRIES AND EXITS LOOK AT MY PREVIOUS IDEA.
The bitcoin price could pump soon and bounce between the resistance and supports areas.
Drawn on the chart is 1h/4h identified significant resistance and support lines.
Purple boxes are strong resistance support, blue boxes are weaker resistance support.
The proposed long positions have very tight stop losses, and very loose take profit, so the risk reward ratio is advantageous.
The longs could be made as four individual longs, or as one single long, where profit is taken at the four different indicated levels.
If a single long is opened, the first take profit should ideally be closing the vast majority of the position. possibly up to 80%, and the next take profit should be 80% of the remaining position and so on.
A fib extension is shown from the recent low, to the current local top price, fitting somewhat well with the historic resistance and support lines.
PCG - Going as Planned***None of the idea I share, including this one, should be taken as financial advise. Tread lightly and if ever you find yourself certain of something, think again.***
Previous Idea and Trend
In my previous idea (linked) on PCG I said I'd expect this stock to struggle downward most of the summer and reach a strong support level in the low $9.00 range. This has been the case so far and there's not much that's changed to affect my view, at this point.
Reiteration
I still believe the current price level is this stock's bottom until there are other catalysts. It will remain around this level for the remainder of the summer with a possible break-out later this year (October or November).
Other News
PCG's decision to burry 10,000 miles of cable to mitigate fire risk is, in my view, an attempt to save face given the present concerns over PCG's role in the Dixie fire and sensitivity around the wildfire subject at large. I say this because cable burial, even when done as cheaply as feasible, is very expensive when compared to overhead installations. My preference would have been for PCG to make large investments in overhead protection of assets (specifically fuse-linked cutouts and surge-arrester failures). There are plenty of asset protection devices that almost completely mitigate the chance of asset failure and subsequent fire creation. This could have been done with fractions of the cost of cable burial and could have been done system wide instead of only across select segments (where the likelihood the most effectual burial segments could be miss-identified is high).
In my estimation, this move's short-sightedness it mitigated by the comfort provided from concern management is showing toward future fire prevention.
Dixie Fire and PCG
From what I've read, it seems very unlikely PG&E had a role in starting the Dixie fire; more so considering the exact verbiage of any legal challenge would include the word "negligent". Thus far, legal "challenges" have been political in nature rather than legally interesting: All fear, loathing, and grand-standing. Even if PG&E is found to have behaved negligently resulting in the Dixie fire, the structure of AB 1054 provides reasonable downside protection.
The Fed's Role
As always, in this current market, we have to consider Fed actions. If talk of asset tapering manifests into actual tapering I would expect this stock to fall. We shall see.
Position Additions
I'm still not looking to add to my position until the common stock reaches mid-to-low $7.00 range.