S&P 500 Daily Chart Analysis For Week of December 2, 2022Technical Analysis and Outlook
Outer Index Rally 4140 is currently in play. The uptrend sentiment might be temporarily restricted by Mean Res 4085 and Mean Res 4110. The downside target to the Mean Sup 3948 is likely once the major rally to the above outcome is completed. The possibility of additional previously specified support levels will emerge - See previous chart analysis postings.
Inflationhedge
Bitcoin (BTC/USD) Daily Chart Analysis For Week of Dec 2, 2022Technical Analysis and Outlook:
Bitcoin continuously (Slowly) advancing towards our leading destination of the Mean Res $17,600 and subsequently to the Outer Coin Rally of $19,100. The down-trend retest to Key Sup $15,850 is low at this time, pending the above scenario being played out. The next Outer Coin Dip of $12,400 outcome in the foreseeable future is pending.
S&P 500 Daily Chart Analysis For Week of November 25, 2022Technical Analysis and Outlook
Outer Index Rally 4060's upside target (As shown on Chart Analysis For the Week of November 18) with the additional target is potential #2 Outer Index Rally 4140. The current sentiment is confirmed by the obsoletion of the Mean Res 3995; The downside target to the newly created Mean Sup 3948 is very probable before a major rally to the above outcome. The possibility of extension to Mean Sup 3745 and beyond is delayed in the foreseeable future.
Bitcoin (BTC/USD) Daily Chart Analysis For Week of Nov 25, 2022Technical Analysis and Outlook:
Bitcoin has repeated bounce from our Key Sup $15,850 on Nov 21. The coin is currently positioned to punch to the Mean Res $17,600 and subsequently to Outer Coin Rally $19,100. The down-trend projects for the next Outer Coin Dip of $12,400 in the foreseeable future are being delayed.
S&P 500 Daily Chart Analysis For Week of November 18, 2022Technical Analysis and Outlook
Outer Index Rally 4060's upside target (As shown on Chart Analysis For the Week of November 11) is currently in progress along with potential #2 Outer Index Rally 4140; however, the newly created Mean Res 3995 is in the interim a roadblock. The downside selected target to Mean Sup 3915 is very high once the completion(s) is triggered, with the possibility of extension to Mean Sup 3745 and beyond - in the foreseeable future.
EUR/USD Daily Chart Analysis For Week of November 18, 2022Technical Analysis and Outlook:
Following the strong Eurodollar rebound the previous week, the currency
completed our designated target of the Inner Currency Rally 1.038 this week, as specified on the EUR/USD Daily Chart Analysis For November 11 chart. Since completing the target, the Eurodollar is in retreat mode to Mean Sup 1.0285, potentially followed to a completed Inner Currency Rally of 1.038 retests one more time.
The prevailing down move is prone to pull back to our additional Mean Sup 1.014, 1.000, and 0.975. The down-trend projects for the Next Outer Currency Dip of 0.937 for the foreseeable future is being reignited.
S&P 500 Daily Chart Analysis For Week of November 11, 2022Technical Analysis and Outlook
Chart Analysis For the Week of November 4) has been completed, along with two additional rebound stages Mean Res 3900 and Mean Res 3965. Currently, designated upside targets are Outer Index Rally 4060 and 4140, respectively. The downside selected target to Mean Sup 3915 is very high, with the possibility of extension to Mean Sup 3745 and beyond - in the foreseeable future.
EUR/USD Daily Chart Analysis For Week of November 11, 2022Technical Analysis and Outlook:
Eurodollar has rebounded strongly this week since completing our Inner Currency Dip on 26 September - Upcoming target Inner Currency Rally is at 1.038. The prevailing down move is prone to pull back to our Mean Sup 1.000 and beyond in the foreseeable future.
Metals to Break its All Time High AgainMetals to Break its All Time High. I have discussed about Gold before and in this tutorial we will study into Copper.
From last week Fed chairman statement, he said “it is premature to be talking about pausing our rate hike. We have a ways to go."
The continuous inflation is almost a certainty into next year, and what asset or instrument works well with inflation?
Content:
Why interest in copper again
• Fundamental
• Technical
5 Major Copper Uses:
• Building Construction
• Electronic Products
• Transportation
• Industrial Machinery & Equipment
• Medical
Copper Consumption Worldwide:
1. China 54%
2. Europe 15%
3. Other Asia 14%
4. America 11%
5. Other 6%
Source: Statista 2021
Minimum fluctuation
0.0005 per pound = $12.50
0.001 = $25
0.01 = $250
0.1 = $2,500
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
S&P 500 Daily Chart Analysis For Week of November 4, 2022Technical Analysis and Outlook
The upside target marked at 3975 has been partially completed—the newly created Mean Res 3805 is currently designated as the primary target. Mean Res 3900, Mean Res 3955, and Outer Index Rally 3975 are in the making. Downside target designated to Mean Sup 3715 is very high, with the possibility of extension to Mean Sup 3665 and beyond - in the foreseeable future.
EUR/USD Daily Chart Analysis For Week of November 4, 2022Technical Analysis and Outlook:
Eurodollar has completed the retest of our Mean Res 0.9965 - there is a slight possibility of extending this dead-cat rebound to Mean Res 1.0080. The current down move is prone to pull back to our Mean Sup 0.9895 and beyond in the foreseeable future.
Bitcoin (BTC/USD) Daily Chart Analysis For Week of Nov 4, 2022Technical Analysis and Outlook:
Bitcoin has completed the retest of our Mean Sup $20,300 (As sown on Bitcoin Daily Chart Analysis For the Week of Oct 28) and, as a result, pushed a breakout via Mean Res $20,800 heading towards our designated Outer Coin Rally $22,200 and Mean Res $22,500. The down path shows us a retracement to Mean Sup $21,160 and beyond in the foreseeable future.
Bitcoin monthly delta volume divergence is the largest everThe total volume for bitcoin this month on binance BTC/USDT is the largest on record.
If we look to cumulative delta volume, we can see the insanely large divergence going into the monthly close. This suggests buyers are stepping in and absorbing a lot of selling volume. Not only that, the CVD has pushed back up above the 20MA.
Times of divergence in CVD suggest a change in momentum. The higher the timeframe, the more significant. You can see a similar event on the COVID 1M candle in March '20 where the candle was bearish but delta volume showed buyers soaking up the sell volume.
This is an important time for bitcoin and crypto. Currency and bond markets in turmoil, major companies are facing slowing growth, employment etc and the macroeconomic outlook looks bleak.
If bitcoin is to show its value, its here, otherwise... run.
NB: There are inherent "issues" with CVD that one should understand when interpreting it. The official tradingview CVD indicator gives a great summary about this.
Gold is still an inflationary hedge asset, why?My answer is definitely a Yes! But why many say no. It is because they are looking at Gold from a very microscopic view; into its day-to-day to week-to-week movement. But if we analyse Gold from a macro perspective, we will able to appreciate Gold better, that it is still an inflationary hedge asset.
And from today’s case study, we will also learn why it is time to get into Gold again at around this price.
Content:
• Gold is still an inflationary hedge asset, why?
• When to enter into the Gold market again?
For investor, you can invest into the physical Gold, Gold ETFs, funds and even those mining stocks that pay dividend.
For traders, I would like to trade into Futures.
COMEX E-Mini Gold Qo1!
0.25 per troy ounce = $12.50
1.00 = $50
1650 to 1750
= 100 x $50
= US$5,000
COMEX Micro Gold MGC1!
COMEX Regular Gold GC1!
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
XJO AUS200 retraced only 0.382, chops around median of pitchforkXJO acting as an inflation hedge, except when recession kicks in, which will kill all demand. XJO or AUS200 is outperforming US indices coz in a high inflationary environment, a country producing a lot of commodities tend to do better. Another example is Brazil with ticker symbol EWZ, which is also a good inflation hedge if dont want to use PFIX to capture rising rates. Gold right now is crashing with equities & not acting like an inflation hedge as it is supposed to do.
As you can see in the chart, there is a perfect pitchfork with XJO chopping around the dotted median. As shown in the past, the green pitchfork level should offer a strong support should XJO fail to hold the median of pitchfork. On the other hand, a bounce from the median may send XJO to the top of the pitchfork for a new high.
Also, XJO has made many measured moves…like the 3 DARVAS boxes or fractals down from its all-time-high. landing or stopping exactly at the Fibonacci 0.382. Next stop may be the 0.50 Fib & also along the green pitchfork level mentioned above.
Among some Australian commodity stocks doing well are IGO (lithium), BOE (uranium), & BHP (metals & potash)
Not trading advice
DBA - Invesco Agriculture Fund Commodities are currently repricing lower due to the looming global slowdown. Meaning, there is more potential downside for commodities
However,
There are more significant tailwinds that will push commodity prices higher in the longer term.
DBA ETF broke out of yearly downtrend in 2020 indicating that higher food prices are in the global outlook for the upcoming years.
A pullback is probably overdue but after prices stabilize, we can see the DBA ETF push significantly higher. The first stop is fair value (red line).
Inflation not going to slow down for the US until 2028In the short term - like today!
8:30 EST 13 Oct 2022
If the CPI (measures inflation) comes out at above 8.2% this could lead to a market crash as the Fed would likely raise interest rates by another 100 bps on 2 November to curb inflation.
If the CPI comes out below 8.2 this could spark a market rally as they will believe inflation is starting to cool down.
In the long term. Price broke out of the W Formation and is showing major upside to come for Inflation.
This could go on until 2028... If this happens, there is a potential Depression that could kick in world wide.
This depression would then last for another 10 - 20 years (if they can get it under control).
We need a government and quantitative reset...
Sorry for the doom and gloom but it's not looking good technically.
Inflation & Interest Rate Series – Below 5.3% is Crucial for CPIContent:
• Why CPI must be below 5.3%?
• Can we invest or trade or hedge into inflation?
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
Micro 5-Year Yield Futures
1/10 of 1bp = US$1 or
0.001% = US$1
3.000% to 3.050% = US$50
3.000% to 4.000% = US$1,000
See below ideas on the previous videos for this series.
Inflation & Interest Rate Series – The CPI Rally Content:
• Why CPI could be at the beginning of a rally?
• On 14 Dec 21, Fed: “Inflation is not transitory” changes everything
• Strategy to counter inflation
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
If you are into shorter-term trading, the live data feed is definitely a must for traders.
In part 2 of this series, we will do a deep dive on if CPI were to decline, to at what specific level? Before we can consider inflation is under control.
Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
COMEX Micro Gold
0.1 = US$1
1.0 = US$10
1700 points = US$17,000
Eg. 100 points profit = US$1,000
Inflation & Interest Rate Series / Dollar and Gold I have started this inflation and interest rate series, in our last video, we discussed "Inverted Yield". Today will be discussing the relationship between:
. Inflation
. Interest rate
. Dollar and
. Gold
Today's Content:
• Why with higher interest rates, it strengthens the USD
• Is USD the strongest currency? If not, then who?
• Strategy to counter inflation
• Interest rate higher, but a lower USD?
Dollar Index:
. Measure the value of the dollar against a basket of six foreign currencies.
. These are: the Euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona.
. With the increase of money supply over the decades, it causes currencies dilution. When currencies weaken, inflation follows.
COMEX Gold
0.1 = US$10
1.0 = US$100
10 points = US$1,000
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
Buy Oil WTI - IMO should bounce on this L/T +++ Ascending Trend line Line - L/T Technical support from March 2020 lows.
Using a weekly candle chart,
Crude right on an upward trend line testing, using the March 2020 low.
Crude should bounce from here current level having been tough to break over the last 2 years.
Unless we are about to live a historical correction moment on Oil (liquidation/ news flow / Itan) the current price action set up is favouring longs here.
As an aside we are also reaching a 50% retardement Fibonacci ratio level taking High 2022/ March 2020 Low.
NYMEX:CL1!
Bitcoin Adjusted For Commodity & M2SLChart shows historical price of Bitcoin adjusted against both the Global Commodity Price Index and M2SL, and may serve as a visual aid to illustrate Bitcoin price adjusted for rise in commodity prices while taking into account increase in money supply.
This chart therefore accentuates and magnifies the recent downturn by taking into account both rising commodity prices due partially to increase in Money Supply and money supply increase itself. One could make the case that this chart distorts the price of Bitcoin. One could also make the case that the chart illustrates Bitcoin's shortcomings as an inflation hedge.
Regression analysis shows retrace from cycle ATH to ATL becoming more severe with each downturn. By this measure, we might try to look for 88% retrace on this chart.