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JPMorgan Chase (JPM) bullish scenario:The technical figure Triangle can be found in the daily chart in the US company JPMorgan Chase (JPM). JPMorgan Chase & Co. is an American multinational financial services company. It is the largest bank in the United States and the world's largest bank by market capitalization (as of 2023).The firm operates the largest investment bank in the world by revenue. The Triangle broke through the resistance line on 15/04/2023. If the price holds above this level, you can have a possible bullish price movement with a forecast for the next 9 days towards 145.00 USD. According to experts, your stop-loss order should be placed at 126.85 USD if you decide to enter this position. JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C) and PNC (PNC) all reported surging revenue and profits in the first quarter even as regulators seized some regional lenders and panic spread across the financial system in March. JPMorgan’s net interest income jumped +49%, as average loans increased +5% and net-interest margin expanded to 2.63% from 1.67% in the year-earlier period. Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals and cannot be held liable nor guarantee any profits or losses.
NYSE:JPMLong
by legacyFXofficial
The end of an era.This week, the Bank of Japan governor’s Kuroda’s decade long term comes to an end. As such we would like to take some time to review what this means for the Yen and in particular, the AUDJPY. Firstly, central bank timings. In case you missed it, last Tuesday the Reserve Bank of Australia (RBA) snapped its consecutive 10 rate hikes, being the second major central bank in developed markets to pause after the Bank of Canada. On the other hand, the Bank of Japan’s (BOJ) inaction thus far, is in stark contrast to the rest of the world. Kuroda officially ends his second 5-year term. With the new Governor Ueda at the helm, we think a move away from the current policy stance is very likely for BOJ as inflation remains uncharacteristically high for Japan and unemployment still relatively contained. A shift in the BOJ’s policies could mean the end of the largely debatable Yield Curve Control (YCC) policies, either in the form of abandonment or yet another change to the policy band or target yield as it repeatedly trades close to the upper limit of the currently allowed range. In fact, the OIS Implied rates for the 10-year Japanese gov yields show a huge disparity from the BOJ’s policy ceiling of 0.5%. While it has corrected from the high, it still trades north of the 0.5% cap by a clear margin, indicating market participants’ expectations that the yield cap is likely to be abandoned or shifted higher again. Coincidentally, the BOJ can take a page out of the RBA’s book, where RBA faced an almost identical situation, when in 2021 it was forced to abandon its three-year yield target. Once it lost control, yield quickly shot up there after. If or when the BOJ lose control of its YCC program, this warrants a peek into what might happen to Japanese Yields. Market expectations of forward rates are completely opposite for these two countries, with participants expecting the RBA to execute multiple rates cut through 2023, while Japan is expected to hike rates. So what does this mean for the currency pair? Well one way to look at this is the real yield differential between Japan (JP) and Australia (AU). When the AU – JP yield differential collapses, the AUDJPY tends to follow suit. If RBA is to hold rates, while the BOJ is to raise, we could see this yield differential collapse from here, paving the path for the next downward move in the currency pair. On the technical front, the AUDJPY is trading near its upper resistance of a four decade long descending triangle. On a daily timeframe, although the pair's first attempt to break below the 88 handle was short-lived, it now sits just above this support, which could lead to a second coming. Of course, such a trade might take a while to play out given the decade long chart pattern as well as fundamental factors such as central banks’ policy shifts. Looking ahead, the next potential catalyst could be the Bank of Japan’s first meeting under a new leadership on the 27/28th of April, while the RBA’s next meeting is scheduled for 2nd of May. To express this view, one option is to use the CME AUDJPY currency pair, which allows you to short the currency pair directly. Alternatively, if liquidity and contract size are of concern, the same view can be expressed by selling one Micro USDJPY Futures and buying two Micro AUDUSD Futures to construct a synthetic AUDJPY pair. Setting up the AUDJPY currency pair this way allows a more palatable trade as the notional amount is on roughly 20,000 AUD or 10,000 USD. This synthetic set-up allows us to access a more liquid market in both contracts compared with the full sized one. Using the descending triangle structure as a guide, we set our stops at 94, close to the previous resistance and our take profit at 70. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. 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 Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description. Reference: www.cmegroup.com www.cmegroup.com
Short
by inspirante
Rethinking Fed Intervention: Wages, Inflation, and AIIn light of the precarious global economy and numerous contributing factors, such as deglobalization, the inflationary impact of the war in Ukraine, an aging population, and an overwhelming amount of debt, the Federal Reserve's role and efficacy in the current economic climate have come into question. Drawing on Jeff Snider's work, it is increasingly evident that the Federal Reserve has not completely controlled the financial system. Despite their efforts to manipulate interest rates, external factors and market forces continuously challenge the Fed's authority. The market's current outlook suggests that the Fed may be forced to cut rates soon, indicating that its strategy of hiking rates may not have been the best approach. The central premise that the Fed should intervene to suppress inflation by keeping wages low is fundamentally flawed. Higher wages can lead to increased productivity investments, reducing the need for labor and raising living standards over time. However, hiking interest rates can stifle investment, hindering economic growth and exacerbating inequality. In recent months, inflation has decreased independently, without the direct influence of the Fed's actions, suggesting that the economy may be self-correcting. However, this natural deflationary pressure could be disrupted by external factors, such as the tightening of lending standards brought on by the mini-banking crisis. The ongoing threat of AI-driven job losses and an impending recession further complicates the situation for American workers. Jeff Snider's research at Eurodollar University offers valuable insights into the complex relationship between the Fed and inflation. Snider argues that the Fed's actions may not be the primary cause of inflation, as it has limited control over the money supply. Instead, he posits that the global financial system, specifically the eurodollar market, plays a more significant role in influencing inflation rates. As we progress into the exponential age, the rapid advancement of technology and artificial intelligence (AI) will lead to significant disruptions. However, there are potentially positive aspects to these developments. AI could revolutionize industries, streamline processes, and create new opportunities. The widespread adoption of AI can lead to increased efficiency, improved decision-making, and the automation of repetitive tasks, ultimately driving economic growth. The productivity gains associated with AI could offset some of the negative impacts of the current economic climate, such as job losses and wage stagnation. In summary, the belief that the Fed should intervene to suppress wages to tackle inflation is fundamentally misguided. Such intervention can have numerous negative consequences, including hindering investment and stifling economic growth. In contrast, allowing wages to rise can lead to increased productivity investments and improved living standards. To effectively address inflation, it is essential to consider a more comprehensive range of factors beyond the Fed's actions and recognize the importance of encouraging sustainable economic growth through policies promoting higher wages and productivity investments. Policymakers and financial analysts must carefully consider the consequences of their actions and their impact on the broader economy and society. Thanks to Michael Green, aka @profplum99, for inspiring me to write this analysis :) twitter.com
TVC:US10Y
by BitcoinMacro
Aud/Nzd heading lower The AUDNZD currency pair currently has a "Sell" rating with a total score of -5 after evaluating various factors. First, let's examine the preferences of institutional traders. The AUD has a long position percentage of 38.71%, while the NZD has a long position percentage of 43.82%. As a result, this category gets a score of -1, indicating that institutional traders have a greater preference for the NZD. Next, we'll consider retail traders' positions. For AUDNZD, retail traders are 64% long and 36% short. We use this information when there is a significant imbalance in retail trader positions. A score of +1 or -1 is given if 60% or more of retail traders are on one side. In this case, the AUDNZD receives a score of -1, as the majority of retail traders are long. We generally take the opposite position when the retail crowd is heavily biased. In terms of seasonality, the score is +1, meaning that historically, this market has a tendency to rise during this month. The trend analysis is based on daily chart data, using the 5, 8, and 21 Exponential Moving Averages (EMAs). A strong trend, either upward or downward, is indicated by the alignment of these EMAs. For this pair, the score is -2, implying a downward trend. Lastly, a review of fundamental factors reveals the following: GDP growth is in favor of the AUD, while inflation, unemployment, and interest rates favor the NZD.
Short
by Elite_Forex
1
NZDUSD Outlook 6th April 2023The NZDUSD spiked up yesterday as the RBNZ surprised markets with a 50bps rate hike (the forecast was for 25bps). With the interest rates now at 5.25%, it is just 25bps shy of the peak rates of 5.50% previously indicated by the RBNZ. Following the spike up, the NZDUSD retraced the move to trade below 0.63 again (due to the overnight recovery of strength on the DXY). With the support level at 0.6270 coinciding with the 61.8% fib level, this could be a crucial level. A break of the support could see the NZDUSD trade lower to retest the 0.6240 price level (the upward trendline)
Short
by JinDao_Tai
interest rates and housing Australia.ECONOMICS:AUMR A visualization of how house prices react against interest rates rises other than the obvious divergence where rates get cheap and people will spend more. I haven't made any predictions, there are a lot of moving parts in the system at the moment. CPI being a big one on everyone lips, affordability, availability, sustainability, buzz words right ha A lot of people got money really cheap and after the 5 year fixed terms what is the flow on effect, have people stopped excessive spending and in turn the is a down turn in GDP jobs but CPI still climbs. Will tenants pay for all the rate hikes if the houses are not worth it? will people try and interest only? left with the prospect of selling will prices go too low while we are still in need of more houses to curb demand? ordinary interest increases appeared to be up to 60% over time and we are looking at a event where we are already 3x that. I used info from another chart to have more complete data for the interest, I should have done the house prices too. ( If someone knows how to import stuff like this speak up, that was a ball ache) Surprised tradingviews data was not complete. datawrapper.dwcdn.net Have your say. feed back is welcome. Might do updates if i"m feeling inspired.
ECONOMICS:AUMR
by S12spring
Inflation and Business Cycle: What will happen next?Inflation has been rising aggressively since 2021. It accelerated from 2% to hit an all-time high of 9.1% in June 2022. As inflation rose, central banks like the Fed raised interest rates to control inflation . But this effort to control inflation, on one hand made money more expensive for the industries and on the other hand pushed consumers to reduce their spendings. Many economists had already predicted rising inflation and its impeding worst impact on the global economy and stock markets. Still, there are fears everywhere that bear markets could persist and even a further decline is likely. Here the basic question arises that must be understood: WHAT IS INFLATION & WHY DOES IT OCCUR? In fact, inflation occurs whenever demand for goods and services increases while supply remains constrained. Growth is everyone's dream... To capitalize on this aspiration, banks provide cash at low interest rates to support growth, but unfortunately this cash is used by people to buy luxuries like cars, electronics and homes. Cars need fuel and metals, electronics need high R&D spending and skilled human capital, and houses need building materials. Pressure on luxury items leads to price increases. Technically speaking, when demand accelerates faster than supply, it has a net effect on price. This phenomenon is referred to as the law of demand, which states: "If more people want to buy something, when there is limited supply, the price of that thing will be higher." (The same law of demand applies in the stock market: as demand for stocks increases, their price increases.) After Covid-19, global demand for goods and services began to normalize (increase). But to boost growth, which had been severely hampered in Covid times, banks made easy loans available at attractive interest rates. The resulting increase in the supply of money in the markets stimulated consumer spending. Ideally, if growth had been at a sustained pace and in the productive sectors, inflation would not have occurred. But that never happens - a phenomenon that creates the business cycle. A business cycle has phases of expansion and contraction. We are currently in the contraction phase of the business cycle - inflation is still high, interest rates and yields are unbearable, and industrial performance has declined. WHAT WOULD HAPPEN NEXT? - Unbearable prices will force consumers to reduce their spending/demand - High interest rates and reduced demand will reduce industry revenues and profits - Equity markets will continue to show poor performance But good times will come again! When the market bottoms out in the business cycle, expansion begins. This will be an ideal time to invest in growth and value stocks.
ECONOMICS:USIRYY
by starringinvestors
TLT: Trade Idea Before More Fed QEThe signal I was waiting for to start buying bonds was whenever the Federal Reserve stopped or slowed raising interest rates. The Fed held another rate policy meeting this week and only raised the Federal Funds Rate by +.25% instead of the +.75% that had been the trend. We've gone from seeing a +.50% hike in Dec, to +.25% in Jan to +.25% this week after 4 prior straight +.75% hikes in mid to late 2022. Now that banks are failing and layoffs are starting to tick up, this weeks rate hike was likely the last for a bit unless inflation doesn't stay flat or go down before the next Fed rate meeting. You can search "2023 FOMC meetings" for the full schedule. My thought here is that within the next 12-18 months the Federal Reserve will lower rates and begin buying treasuries again(aka money printing), and I think the time to start front-running that trade in to bonds is now for those who like to accumulate a larger position over time. The best way for the average trader or phone app investor to get into bonds is via "TLT", the iShares 20+ year Treasury Bond ETF, which tracks the 20-year treasury bond price rather than the interest rate on the 20-year bond. As rates go up, bond prices go down and vice versa. Right now I'm betting on rates having topped out(or close to it) and that bond prices are going to go back up over the next year or so as recession fears kick in and stock prices go lower. We've had a deep and long yield curve inversion to boot and those almost always precede a US recession. I have a recent post showing the yield curve inversion vs stocks vs US recessions for reference. TLT price is trading at decade lows and holding above $100 after a dip down to $90. Seeing the price of any asset hold above nice round numbers is always a good sign, psychologically traders like round numbers. The lower PPO momentum indicator is showing signs of a potential reversal in momentum from negative to short-term positive, and this is a monthly chart so it would be a significant event. A bullish crossover is what we want to see which is when the green signal line crosses above the purple base line in the lower PPO indicator. That would indicate a short-term return to bullish momentum on a monthly basis.
NASDAQ:TLTLong
by PrepForProfit
4
Correcting the News. Back to 1.07922? 🐻Check Description for Value ⬇️. Anyways, Looking for lower prices here. Where we have a move created by news which is corrected in the next few trading sessions down right almost to where it began. Simple trade idea. I've studied this is in the past. I have multiple screenshots in a library that documents this exact move. Doesn't matter what the news is necessarily. What matters for the most part is the market structure after price spikes. What kind of market structure can we observe after we spike? In the succeeding sessions after the news, what is price doing?
Short
by ShrewdCatfx
1
Additional short ideaHi Traders Before continuing reading, please check out my first Bitcoin short idea. This scenario builds on that idea. Bitcoin has been consolidating high for the past week, yet markets are filled with bearish news. After our first rejection of the 28500 resistance area, Bitcoin looks set to move lower. If you missed the entry on 28500, here is my game plan to find another possible entry somewhere around 28k. Here is my Game Plan: - Bitcoin needs to consolidate further - Touch on the 28k area is needed for this setup to be activated - Clear rejection of 28k, if we push above 28k we might be moving higher, so I will be looking for an entry in the 27.9k area - Entry at a clear break of the trendline - Price movement needs to be erratic to the downside Please make sure to follow me on Tradingview for future setups. Have a fantastic day legends. Best CH
Short
by TraderCHgold
SPX (1D) Midterm setup - BEAR Market chance is raisingHello traders, investors and other speculators :) Yesterday before Jerome Powell spoke, markets we underestimating chance of 25bos hike. Now it seems like we can expect another 25bps hike in May. With current conditions there are increasing odds for bear market coming as SP is falling closer to sub 3900 support levels. Also notice rejection from exponential moving averages (EMA 55 and EMA 200 at 1D chart). Those are not good signs. More red flags come from indicators RSI (rejection below resistance) and MACD which is down ticking again. With expectations of S&P EPS falling ... P/E Will be considered overvalued and risky. While you can earn up to 4,5-5% p.a. by just holding government bonds. So why the hell should S&P 500 go up from this point? If 3900 bps support break, than we are heading MUCH LOWER. Brace yourself.
AMEX:SPYShort
by Longevity_Contrarian
Favoring sells But sitting on Sidelines. Interest Rates⛔-->->EU I like the Risk to reward to the downside. However, and similar to Feb 1st Announcement, we could rip upwards to the Moon similar to first landing on the moon. We'll See what happens as we sit on the sidelines. Beware of position sizing during intraday scalping 1Hr after announcement. Which I have found typically to be the best time to trade surrounding news trading. Price is currently sitting underneath our 1.08 Daily zone. If we decide to move up our next target will be 1.08539 Daily Level. Other than that we have rather clean traffic heading up on the 4hr. If the market determines that pessimism is strong enough, we will respect our daily level here at 1.08, and leave a wick of liquidity catching breakout traders to the downside. Going down, I can observe us reaching 1.074 Daily level relatively easy once again. Anticpating crazy volatility here. Those are expecatations but we could be disappointed. Manage expectations. Safe trading.
Short
by ShrewdCatfx
Grand City Properties: Oversold dusted jewel? Maybe not yet.Back in Oct 13, 2022 I made this analysis: Compared to Vonovia, Grand City has a double better debt position than its big competitor. Earnings payout are 23% and cash payout 64%. Vonovia's respective figures are 67% and 61%. Debt quity ratio at 57% is highly different from Vonovia's at 117%. Grand City may experiment higher costs of debt refinancing in 2023 but not as much as Vonovia in relative numbers. Grand City is able to breath better within this whole interest rates hike environment than mostly any other REIT. Sometimes, it's better to aim at 1,5B valued companies than 15B valued ones. But then, on March 16th, 2023 GYC presented its FY 2022 results. And my analysis changed to this one: Unfortunately, Grand City decided not to pay 2022 dividend due to macroeconomic uncertainty. The results were somewhat weak even though positive. I see GYC going down to 4.42€ in the next months. Better to avoid January and February 2013 lows were around 4.42€. Current PER is 9.51 and dividend yield has been cut to 0% in 2022. Interest rates keep rising at the moment and before the SVB, FRC, Credit Suisse fall; investors thought they would go up until 5.5-6%. Even though debt is lower than its bigger competitor Vonovia and according to GYC website the company’s debt have a 95% interest hedging ratio, which is expected to reduce to 91% as some interest rate hedging matures throughout 2023; in an environment of increasing interest rates, investors could switch from REITs to bonds. The fact that GYC cut its dividend to 0, may look very disciplined and responsible. But a REIT who does not pay dividend is no longer attractive in my opinion. Whether it will be at 10-15€ in the next 4-5 years, that depends on: inflation stabilisation, interest rates beginning to drop at comfortable levels (1-3%), reduced banking crisis uncertainty and reduced recession fears, among other factors. It's also important to track the FFO and AFFO and compare these two metrics with competitors in order to see if the stock has been oversold or overbought. If Central Banks stop raising interest rates or inflation drops further, then REITs will be one of the first sectors to recover as they may be experiencing overselling. When I analysed GYC back in Oct, I saw good fundamental reasons to invest in it. Macroeconomic uncertainty is now overweighting those fundamental reasons. But when every aspect in the macroeconomic environment seemed to doom the expectations of GYC stock, I analysed the fundamentals of the company: Analysis FY 2022 results: Net Debt/EBITDA = 11.4x. AFFO diminished -1.26%. FFO/per share +3% at 1.14€. P/FFO (Today) = 7/1.14 = 6.14. Guidance FY 2023 FFO/share to decrease -13.16% max to 0.99€/share. P/FFO (2023e) = 7/0.99 = 7.07. Sector P/FFO for Residential REITs in US has been moving steadily between 17 and 25 in 2010-2018 period (S&P Global Market Intelligence, Nareit 2018). GYC is clearly undervalued already. Technical aspect doesn’t show any signs of recovery yet. RSI(14) suggesting completely oversold but selling volume keeps increasing. CONCLUSION We may be set to turnaround very soon on GYC. However, the fact that a REIT does not pay dividends is something clearly penalising the stock value. Therefore, I would still wait and see how the market develops and if GYC reaches 4.40€ level, maybe it could act as a historic support level from January 2013 and bounce back upwards from there.
XETR:GYCShort
by alexinve
FED Interest Rates and it's mechanism BINANCE:BTCUSDT In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve to maintain depository institutions' reserve requirements. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds rate is an important benchmark in financial markets. The effective federal funds rate (EFFR) is calculated as the effective median interest rate of overnight federal funds transactions during the previous business day. It is published daily by the Federal Reserve Bank of New York. The federal funds target range is determined by a meeting of the members of the Federal Open Market Committee (FOMC) which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule. The Federal Reserve uses open market operations to bring the effective rate into the target range. The target range is chosen in part to influence the money supply in the U.S. economy Financial institutions are obligated by law to hold liquid assets that can be used to cover sustained net cash outflows. Among these assets are the deposits that the institutions maintain, directly or indirectly, with a Federal Reserve Bank. An institution that is below its required liquidity can address this temporarily by borrowing from institutions that have Federal Reserve deposits in excess of the requirement. The interest rate that a borrowing bank pays to a lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the effective federal funds rate. The Federal Open Market Committee regularly sets a target range for the federal funds rate according to its policy goals and the economic conditions of the United States. It directs the Federal Reserve Banks to influence the rate toward that range with open market operations or adjustments to their own deposit interest rates. Although this is commonly referred to as "setting interest rates," the effect is not immediate and depends on the banks' response to money market conditions. Separately, the Federal Reserve lends directly to institutions through its discount window, at a rate that is usually higher than the federal funds rate. Future contracts in the federal funds rate trade on the Chicago Board of Trade (CBOT), and the financial press refer to these contracts when estimating the probabilities of upcoming FOMC actions. When the FOMC wishes to reduce interest rates they will increase the supply of money by buying government securities. When additional supply is added and everything else remains constant, the price of borrowed funds – the federal funds rate – falls. Conversely, when the Committee wishes to increase the federal funds rate, they will instruct the Desk Manager to sell government securities, thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply. When supply is taken away and everything else remains constant, the interest rate will normally rise. The Federal Reserve has responded to a potential slow-down by lowering the target federal funds rate during recessions and other periods of lower growth. In fact, the Committee's lowering has recently predated recessions, in order to stimulate the economy and cushion the fall. Reducing the federal funds rate makes money cheaper, allowing an influx of credit into the economy through all types of loans.
Education
by INVESTRONE
3
Looking towards next daily zone 1.08 before Sellers 🏳️Wicks Don't Lie. Momentum Doesn't Lie. Looking for Higher prices. The Reasons Why. 1. Weekly/Daily is Bullish 2. 4hr Closed solid bullish 3. We wait for healthy pullback to a 4hr level 4. 4Hr zones get respected frequently 5. End of Last week Weekly Candle Pulled Back hard and so far this week we have seen a confirmation of that momentum. There is alot of fear and pessimism. It is more important to follow price instead of imposing what we believe will happen onto the market.
Long
by ShrewdCatfx
3