ES35/ESPIXEUR "SPAIN 35" Index Market Heist Plan on Bullish SideHola! Ola! My Dear Robbers / Money Makers & Losers, 🤑 💰
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Entry 📈 : Can be taken Anywhere, What I suggest you to Place Buy Limit Orders in 15mins Timeframe Recent / Nearest Low Point take entry should be in pullback.
Stop Loss 🛑 : Recent Swing Low using 2H timeframe
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Warning : Fundamental Analysis news 📰 🗞️ comes against our robbery plan. our plan will be ruined smash the Stop Loss 🚫🚏. Don't Enter the market at the news update.
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Ibex
The Ibex 35 takes a pause within an upward trendThe IBEX 35 remains flat, with mixed performance among the selective stocks. The most bearish companies are those negatively affected by interest rate cuts, such as banks, while construction, real estate, and utilities, which benefit from lower rates, rose today after:
Several ECB members advocate for another interest rate cut next week after having reduced them twice this year, and financial markets almost certainly expect a cut to the deposit rate to 3.5% on October 17.
The French central bank chief, François Villeroy: the cut is likely, and it will not be the last one, depending on how inflation evolves.
Economic weakness: The economy has been stagnating, the labor market is weakening, wage growth is slowing down, and inflation has fallen faster than the ECB had predicted.
Market expectations: Investors expect the ECB’s deposit rate to fall to 3% by the end of 2023 and to 2% by the end of 2025, which is considered the neutral rate, a level that neither stimulates nor slows economic growth.
Additionally, investors remain cautious due to global uncertainty and decisions from the Fed.
Investors are waiting for the minutes from the Federal Reserve (Fed) meeting to get hints about interest rate easing in the U.S. The market estimates a 98% probability of a 25 basis point cut at the next meeting.
U.S. inflation data (Thursday) and the producer price index (Friday) will be crucial.
Uncertainty in the U.S.: Recent employment data and wage inflation have raised doubts about Federal Reserve rate cuts, strengthening the dollar and increasing bond yields.
China and the Middle East: Market correction in China and geopolitical tensions in the Middle East are affecting oil price stability and adding more pressure to international markets.
However, the IBEX 35 has an upward target activated by breaking out of a lateral range up to 12,413 points, a scenario which, in my opinion, is the most likely to materialize in the medium term.
Sergio Ávila
Analista senior de IG
Spain's Political Shift: Rising Investment RisksRecent political developments in Spain, particularly Deputy Prime Minister Yolanda Diaz's controversial pro-Palestine remarks, have strained diplomatic relations with Israel and drawn international criticism. This escalating tension raises concerns for investors in the Spanish market.
Potential for Instability: Heightened geopolitical tensions and the possibility of increased antisemitism could lead to social and political instability in Spain. This, in turn, could deter foreign investment and damage the country's international standing.
Security Risks: The recognition of Palestine amidst ongoing Middle Eastern conflicts elevates the risk of terrorist activity within Spain, further eroding investor confidence.
Market Disadvantage: Unlike the US, Spain lacks a significant presence of major technology companies. This makes the Spanish market less attractive during periods of geopolitical uncertainty when investors prioritize stability and high-growth opportunities.
Conclusion: The current environment presents a complex web of geopolitical instability, historical tensions, and potential economic disruption, ultimately leading to a volatile market with the potential for negative investment returns.
Macro Monday 27 - Headwinds in Europe but Spain thrivingMacro Monday 27
Headwinds for Europe but Spain demonstrating relative strength
As it is New Years Eve I wanted to do an early release for tomorrow.
This week we are taking a look at another major market Index in Europe and we will also look at one smaller market within this geographical location, Spain, due to its strong chart set up and promising economic data released in December 2023.
EURO STOXX 50 Index - $SE5E
The EURO STOXX 50 index is known as Eurozone’s leading blue-chip index and is designed to represent the 50 largest and most liquid companies in the eurozone.
It was designed by STOXX, an index provider owned by Deutsche Börse Group (which operates one of the world's largest stock exchanges by market capitalization – the Frankfurt Stock Exchange). STOXX have an array of interesting index’s that we might review over coming weeks.
The Euro STOXX index is composed of 50 stocks from 11 countries in the Eurozone. These are the top fifty largest and most liquid stocks. The index futures and options on the EURO STOXX 50, traded on Eurex, are among the most liquid products in Europe and the world.
The Top Three Holdings (representing 20% of overall EURO STOXX 50 index):
1. ASML Holding NV NASDAQ:ASML : Microelectronics solutions provider that offers semiconductor manufacturing equipment.
2. LVMH Moët Hennessy Louis Vuitton OTC:LVMHF : World Leader in luxury brands such as Tiffany & Co, Christian Dior, Marc Jacobs, TAG Heuer, and Bulgari.
3. TotalEnergies SE EURONEXT:TTE : This is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. The company has 100,000 employees and is active in 130 countries.
Interestingly the EURO STOXX 50 Index typically represents approximately 60% weighting of the STOXX Europe 600 Index, which is derived from the STOXX Europe Total Market Index LSE:TMI which is a subset of the STOXX Global 1800 Index. Talk about a game of Russian dolls. We will look at these other charts at another time, for now we are focused on the arrow head of the commercial European markets, the Top 50 companies in the EURO STOXX 50.
The EURO STOXX 50 Index can provide a great overview on how the largest and most liquid companies in Europe are performing in aggregate, thus giving us insight into the European commercial markets direction and the European economy. So lets take a look at the chart.
The Chart
Whilst the chart is in a general uptrend since 2009 with successive higher lows, we appear to have made a long term pennant breakout however there are a number of concerns that jump out at me.
▫️ We are approaching the July 2007 market highs and if surpassed we will then have another overhead resistance from the March 2000 All Time Market highs. These are significant resistance levels.
▫️ We could be forming a rising pennant at present so even if we breach the July 2007 highs, we have the intermittent pennant ceiling to also contend with.
Whilst these are genuine concerns, at present we are trending upwards with the 21 month SMA sloping upwards.
What to watch for?
Bear Perspective:
▫️ A breach of the 21 month moving average followed by,
▫️ A breach of the rising wedge lower boundary. NOT GOOD
Bull Perspective:
▫️ We break above the July 2007 Top and make support on it eventually finding additional support from the 21 monthly moving average as time moves on.
Would I trade this chart? No! However, it is an exceptionally interesting chart that offers valuable perspective on the major components within the European commercial markets. It provides us with an interesting perspective on the European Economy and can help us understand the broader opportunity or risks within the market.
IBEX 35 Index - BME:IBC
We are now going to have a look at the top 35 stocks in the Spanish stock market as this market has proven to be an outlier in 2023.
The IBEX 35 Index is made up of the 35 most liquid stocks traded on the Spanish stock market. Between 2000 and 2007, this index outperformed many of its Western peers, driven by relatively strong domestic economic growth which particularly helped construction and real estate stocks. In these bull markets Spain proved to have more volatility to the upside, however that obviously comes with the potential opposite downside volatility also. In any event, we can take advantage of one of Europe’s fast paced markets and consider individual stocks within it.
Spain as an outlier
I have focused in on Spain as the chart looked more promising than the markets in other European countries, thereafter I found some economic data and narratives that support this potentially strong chart set up.
▫️ Spain is the 4th largest economy of the EU - save for that of the United Kingdom - and the 14th largest in the world.
▫️ Spain is the 13th largest recipient of foreign investments in the world. More than 14,600 foreign firms have set up their business in Spain and this appears to be a continuing trend.
▫️ As recently as the 18th December it was announced that Spanish exports exceeded €320 billion from January to October 2023, an all-time high, according to government statistics.
▫️ Industries leading this boom were the automobile, capital goods and food, beverage, and tobacco sectors.
▫️ The Spanish state also confirmed that the nation has a current account surplus of 3% of GDP, the best figure recorded since 2018.
▫️ Geographically, 61.6% of total Spanish exports were sent to the European Union in October 2023, while exports to non-EU countries accounted for 38.4% of the total, demonstrating Spain’s global reach is versatile and not restricted to Europe.
Finally a quote from the Spain's Ministry of Economy, Trade and Business "The Spanish economy ……in the complex international context, has maintained its constant weight in international trade in goods and increased its share of the European market in recent years,".
IBEX 35 Index Top 3 Holdings:
1. Iberdola BME:IBE (14%) – A clean energy utility company with 40,000 employees. It constructs, operates and manages power generation plants, transmission and distribution facilities and other assets. The company produces electricity using conventional and renewable energy source
2. Inditex BME:ITX (14%) – One of the worlds largest distribution groups for the likes of ZARA, PULL&BEAR, MASSIMO DUTTI and BERSHKA. These brands are more aligned with mid-range affordability for the middle class.
3. Santander BME:SAN (11%) – The 28th largest bank I the world with 200,000 employees, 166 million customers and 1.7 Trillion in total assets (all global figures).
The top three holdings making up almost 40% of the IBEX 35 weighting are actually a nice blend of Energy, Staples and Finance. This adds to my preference to actually invest in the IBEX 35 Index as it appears to be a nicely diversified index from a review of the major holdings.
The Chart
A long term pennant has made a defined breakout of the range and found support with a bounce off the 21 month moving average.
Historically you can see the relevance of the 21 month moving average, once lost after the 2000 and 2007 top it was a clear indication to exit the market. Conversely, once price is established above the 21 month moving average you can see that you typically have good odds of upward momentum.
The advantage of watching an index like this, outside of a liquid trade, is that it gives us an indication that the Spanish market has relative strength at present and companies within the index, and potentially outside it, may offer a greater probability of returns than other markets in the Eurozone. I guess being a smaller well diversified and more nimble market in the sunny Mediterranean has its benefits.
I highly recommend you review last weeks Macro Monday which looked at how positive four large Global Index’s are looking at present. These were the Vanguard Total World Stock Index ETF - AMEX:VT , iShares Global Energy ETF - AMEX:IXC , Global X FinTech ETF - NASDAQ:FINX and the Global X Blockchain ETF - NASDAQ:BKCH
If you enjoy my coverage of these indices or would like me to cover some others, please let me know in the comments,
Happy New Year Folks, sláinte 🥂
PUKA
BOJ Navigates Interest Rates and Yen AppreciationThe Japanese yen has appreciated past 130 per dollar and is heading back to its strongest levels in almost eight months. This is mainly due to a general weakness in the dollar, with expectations that the Federal Reserve will slow the pace of its interest rate hikes. The Bank of Japan recently held a policy meeting in January, where policymakers debated the inflation outlook and the likelihood of a sustainable rise in wages, while also emphasizing the need to keep monetary policy accommodative. Despite speculation about another policy adjustment, the central bank maintained its ultra-low interest rates and left its yield control policy unchanged. BOJ Governor Haruhiko Kuroda reemphasized that the 2% inflation target must be achieved in a sustainable manner. Traders will be keeping a close eye on the BOJ's policy meeting in March and April when a new BOJ governor takes office. The yield on the 10-year JGB rose to 0.5%, approaching the upper range of the Bank of Japan's tolerance limit, as investors digest the Summary of Opinions document from the recent policy meeting. This was the highest level since the eight-year peak of 0.506% on January 17th, before the BOJ defied speculation and left its yield curve control policy unchanged at 0.5%. Despite the Summary indicating that the body does not see any changes to the yield curve thresholds in the near future, high inflation adds pressure to drop the ultra-loose policy before a new governor is appointed in April. The Nikkei 225 Index rose 0.07% to close at 27,347 while the broader Topix Index shed 0.15% to 1,972 in mixed trade on Wednesday, with Japanese shares struggling for direction as caution dominated sentiment ahead of a highly-anticipated interest rate decision from the US Federal Reserve. Mixed domestic corporate earnings also weighed on sentiment, as well as lingering uncertainties about new export restrictions in China that may affect Japan’s chip equipment sector. Japanese shares traded mixed on Wednesday, with gains from index heavyweights such as SoftBank Group (1.8%), Tokyo Electron (2.1%) and Nippon Yusen (3.3%), while losses were seen from Mitsubishi UFJ (-0.4%), Sony Group (-1%) and Fast Retailing (-0.6%). Elsewhere, Lasertec plunged 13.8% after missing earnings and revenue estimates in the latest quarter.
Elliott Wave View: IBEX Soon Reaching Resistance AreaIBEX shows an incomplete bearish sequence from 6.14.2021 high favoring further downside against 5.30.2022 high (8992.7). Short term, Index is now correcting cycle from 5.30.2022 high in 3, 7, or 11 swing before the decline resumes. Down from 5.30.2022 high, wave (W) ended at 7191.57 as the 1 hour chart below shows. Wave (X) rally is currently in progress to correct cycle from 5.30.2022 high with internal subdivision as a double three Elliott Wave structure.
Up from wave (W), wave ((a)) ended at 7502.9, pullback in wave ((b)) ended at 7371.70, and wave ((c)) higher ended at 7692.30 which completed wave W. Pullback in wave X ended at 7449.70 with internal subdivision as a zigzag structure. Down from wave W, wave ((a)) ended at 7530.50, wave ((b)) ended at 7660.40, and wave ((c)) lower ended at 7449.70. This completed wave X and now wave Y higher is in progress as a zigzag. Up from wave X, wave ((a)) ended at 7745.20, and wave ((b)) ended at 7675.30. Expect wave ((c)) of Y to complete at 7942 – 8249.50. This should complete wave (X) in higher degree and see Index resumes lower or pullback in 3 waves at least.
Elliott Wave View: IBEX Has Resumed HigherShort Term Elliott Wave View in IBEX suggests rally from 3/7/2022 low is in progress as a 5 waves impulse. Up from 3/7 low, wave (1) ended at 8875.30. Wave (2) pullback has ended at 8137.37 with internal subdivision as a double three. Down from wave (1), wave ((a)) ended at 8512.3, rally in wave ((b)) ended at 8703.50, and third leg lower wave ((c)) ended at 8344.90 which also complete wave W. Wave X corrective rally ended at 8650.70 with internal subdivision as a zigzag structure. Final leg lower wave Y ended at 8137.37 with internal also as a zigzag structure.
Index has turned higher and broken above wave (1) at 8875.3 suggesting the next leg higher has started. Up from wave (2), wave (i) ended at 8383, wave (ii) ended at 8324.1, wave (iii) ended at 8488.90, wave (iv) ended at 8437.10 and wave (v) of ((i)) ended at 8546.30. Wave ((ii)) pullback has ended at 8342.20. Index has resumed higher in wave ((iii)). Up from wave ((ii)), wave (i) ended at 8598.40 and dips in wave (ii) ended at 8515.60. As far as pivot at 8137.37 low stays intact, expect Index to extend higher.
Elliott Wave View: IBEX Has Resumed DownsideShort Term Elliott Wave View in IBEX suggests the decline from November 1, 2021 peak is unfolding as a 5 waves diagonal. Down from November 1, 2021 peak, wave (1) ended at 8082.4 and rally in wave (2) ended at 8912.20. The Index resumes lower in wave (3) which ended at 8048. The 1 hour chart below shows that move in wave (3) which subdivides in another 5 waves in smaller degree. Down from wave (2), wave 1 ended at 8266.9 and wave 2 ended at 8607.10. Wave 3 ended at 8061.2, wave 4 rally ended at 8254.10, and wave 5 lower ended at 8048.30 which completed wave (3).
Bounce in wave (4) ended at 8509.90 with internal subdivision as a zigzag. Up from wave (3), wave A ended at 8496.4, wave B ended at 8288.8, and wave C ended at 8510.61. Index has extended lower in wave (5). Down from wave (4), wave ((i)) ended at 8076.40 and rally in wave ((ii)) ended at 8370.80. Near term as far as pivot at 8510.61 stays intact, expect rally to fail in the sequence of 3, 7, or 11 swing for further downside. n of wave w which comes at 3629 – 3998.
Enagas: Top pick for a dividend strategyWith a yearly dividend yield of 6.6%, it is at the current moment one of the bests in the Spanish stock exchange. Moreover, from the technical analysis perspective, we have a strong support level on the daily chart (19.47 from last candle) and on the weekly chart (17.71). We have in our HT 200 portfolio for the long term and so far we have +10.70% + dividends. 2022 looks a year for value investing and dividend investors, as they are become more risk averse in comparison to 2020 and the increasing inflation, so we believe companies such as Enagas, with a reliable net income in all quarters, offer a safe heaven for these type of investors.
IBEX 35 is back, next stop 9066Here at Human Traders we've analyzing closely the IBEX 35. Remember, this one does not include dividends as the DAX 40 does. The IBEX 35 will test again the MEGA resistance level, next top on 9066 points. If the resistance level is broken out, the next stop will be on 11400, and then, there will be no limit at all. We are long on this one as the general outlook of the market remains positive and this week we've seen huge bullish signals across all indicators and price movement.
IBEX 35 - Cold Spanish Winter ESP35 or IBEX35 chart is a classic 'Go Short' example.
We like to hedge (Buy the strongest/ go Short on the weakest) and this one in particular is (still) the definition of the second category:
-The European Commission lowered its forecast for Spanish growth this year as the country's recovery from the COVID-19 pandemic lagged behind other European nations.
The commission estimates that the rise of Spanish gross domestic product will be 4.6% this year and 5.5% next year, almost two points less than earlier forecasts of 6.5% this year and 7% in 2022.
- in Spain — the eurozone's fourth-largest economy — GDP is 6.6% below 2019 levels.
(Germany has narrowed the gap to 1.1% compared with pre-pandemic levels, and France has reduced the difference to just 0.1%).
- Weak household spending and supply chain bottlenecks are weighing on the post-pandemic rebound.
- According to Brussel s, Spain is the only EU country where economic activity will not return to pre-pandemic levels before 2023
Charts never lie. IBEX is expected to take a dip further. In the meantime it's our way to hedge our Long positions on other indices (as well as part of our exposure to Bitcoin...)
One Love,
the FXPROFESSOR
ercros solid chemicals company, on a weekly tf is forming a cup and handle, but for now better look at lower tf.
ibex35 looks fighting with the 9000pts resistance zone, but i have no doubt it will surpass it due to EU not easing QE, this might drag up with it this shit.
technicaly formed a reverse H&S, had a false break thru, quite big one, but spanish stocks are quite a mess by this point of view. the final pattern's target is very close to the 1.6 fib extention.
Elliott Wave View: IBEX35 Pullback Should Find BuyersShort term Elliott Wave View in IBEX suggests the rally from January 28, 2021 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from January 28 low, wave 1 ended at 8739.9 and wave 2 pullback ended at 8274.60. The Index extended higher in wave 3 towards 9148.9 and pullback in wave 4 ended at 8804.90. Subdivision of wave 4 unfolded as a zigzag Elliott Wave structure. Wave ((a)) ended at 8948.3, wave ((b)) ended at 9054.4 and wave ((c)) ended at 8804.73. Wave ((c)) of 4 pullback ended at the 100% – 161.8% Fibonacci extension of wave ((a)) at 8725 – 8850
From the blue box, IBEX has extended higher in wave 5. Up from wave 4, wave (i) ended at 9068.70 and pullback in wave (ii) ended at 9006.10. Index then resumed higher in wave (iii) towards 9203 and pullback in wave (iv) ended at 9099.50. Final leg higher in wave (v) of ((i)) ended at 9240.80. Pullback in wave ((ii)) completed at 8978.20 and Index has resumed higher again in wave ((iii)). Up from wave ((ii)), wave (i) ended at 9245.60. Expect wave (ii) dips to correct cycle from May 19, 2021 low before the rally resumes. As far as pivot at 8804.73 low stays intact, expect dips to find support in 3, 7, or 11 swing for more upside.
CAD slides with oil as WTI slips back below $58 per barrelDuring today’s European trading session, the risk tone soured with EMEA indices negative across the board and measures of volatility elevated; although, safe haven currencies remained broadly weaker.
Leading European indices to the downside is the IBEX 35 at -1.13%, followed by the FTSE 100 at -0.94%, the Euro Stoxx 50 at -0.65% and the DAX and CAC 40 at -0.62% and -0.47%, respectively.
In the FX complex, despite the moderation from the risk on tone seen in the Asia-Pacific session, JPY is still the session’s laggard. However, with that said, against most counterparts, the safe haven has pulled off its worst levels.
Another notable underperformer on the session is CAD, with Reuters noting, “Canadian dollar holds near two week low as oil slides.” Indeed, WTI has relinquished the $60.00, $59.00 and $58.00 per barrel levels.
In contrast, GBP is currently leading the FX majors to the upside; however, analysts continue to voice concerns over tensions between the UK and EU which threaten the UK’s vaccination rollout.
Looking ahead, expect central bank rhetoric to remain a key theme of the day with numerous Fed speakers on the docket. Of course, expect developments in WTI to remain key for CAD and the overall risk tone to remain key for the antipodeans and safe havens.
ridethepig | French Equities into the election and beyond📌 An update to the map for French Equities
By now we should have all positioned our portfolios defensively and be sure that in doing so by covering we are ensuring that our opponent will not try a steam roller!
Think back to the diagram and follow the flows....
We have a typical position here in which French Equities can be sold actively. Thanks to the economic slowdown, covid and election risk, we can quickly bring about the attack of our targets. Sellers have already completed the difficult part of the move, but we must not go to sleep on the job!
For the sake of the discussions here, encourage all those who are trading the moves down in equities to start sharing their charts and views in the comments and we can further the conversation and developments.
Elliott Wave View: Impulsive Rally in IBEXElliott Wave view in IBEX suggests the decline to 6552.17 ended wave (1). Wave (2) rally is currently in progress as a zigzag Elliott Wave structure to correct the decline from June 8, 2020 high. Up from wave (1) at 6552.17, wave ((i)) ended at 6797.60 and pullback in wave ((ii)) ended at 6639.80. Index then resumed higher in wave ((iii)) which subdivided into another impulse in lesser degree. Wave (i) of ((iii)) ended at 6800.40 and wave (ii) of ((iii)) ended at 6649. Wave (iii) of ((iii)) ended at 6975.40, wave (iv) of ((iii)) ended at 6887.70, and another leg higher should end wave (v) of ((iii)).
Index should then pullback in wave ((iv)) before making another push higher in wave ((v)). The 5 waves move should complete wave A in higher degree. Afterwards, expect the Index to pullback in wave B in 3, 7, or 11 swing to correct the 5 waves rally from September 25 low before Index turns higher again in wave C. As far as dips continue to stay above September 25 low (6552.17), expect further upside in the Index. We do not like shorting IBEX in the near term.
ridethepig | IBEX📌 Another example of the erroneous breakdown, a very similar position to DAX, CAC, FTSEMIB and STOXX. We can see how clearly the virus is leading the equity board, as Spain were the first to enter back into the second wave the prevention of a freeing breakup is being made possible via the important loss of diagonal support.
"Sell weakness, and even more when the lows are untested in an environment which can be described as very similar to the original protection. The fact that we are technically well placed when it comes to sub 7,000 we should express dramatically more weakness in Spain and play another test of its lows".
As usual thanks for keeping the feedback coming 👍 or 👎
ridethepig | Stoxx 50📌 Eurostoxx 50 is in question here and we have a good illustration of the ABC outpost. The main target 3,489 is still open for a test but a breakdown here will seal it for the year.
In a nutshell, this is a chart speculating that we are in the very early days of the "C" leg down.
It is the same opening move in play for German Equities, DAX:
This leg down in European Equities will be considered painful for the late buyers; the weakness of the real economy is shown via the following charts.
Unemployment Claims:
US 2's 5's:
Sharp speculators are adopting a wait-and-see policy, the fate of the moves in Eurostoxx depends on the range settlement. Sellers breaking through 3,200 will 'protect' the highs and because of the technical damage done, the flows will finally commit towards +/- 2,475.
As usual...thanks for keeping the feedback coming 👍 or 👎