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BMW (BMW): Navigating Through Uncertainty in the Auto MarketThe German automotive industry is currently facing significant challenges, from rising production costs and the transition to electric vehicles to increased competition from China. Despite these hurdles, we believe that most of the negative factors are already priced into the market. From a technical perspective, we’re zooming out to get a broader view of BMW. Ignoring the COVID-19 dip, BMW has been ranging between 55€ and 113€ for an extended period. We anticipate that this range will continue, as markets tend to range 70% of the time. Right now, BMW is at a critical level, either bottoming out for the fourth time or, more likely, preparing to break below and collect the sell-side liquidity that has accumulated over the past three years. Our plan is simple: We’re monitoring this closely, with alerts set to notify us if the stock dips below this level. Should this occur, we’re looking at a potential entry near 62€. We will update you with our strategy once this scenario unfolds.
XETR:BMWLong
by freeguy_by_wmc
1
Japanese yen slides as political drama continuesThe yen is sharply lower on Wednesday. In the European session, the USD/JPY is trading at 144.82 at the time of writing, up 0.89%. In Japan, the dust is yet to settle on the political drama. On Tuesday, the new Prime Minister, Shigeru Ishiba, appointed Katsunobu Kato as finance minister. Kato is a supporter of “Abenomics” which advocates monetary easing. This could complicate the BoJ’s plans to tighten policy and the yen has responded with sharp losses today. Ishiba is on record for supporting a tighter policy but may have chosen Kato to ease concerns that Ishiba will make a significant shift in monetary policy with a snap election on October 27. The election will be followed by the next BoJ meeting on October 31, with the BoJ expected to maintain its policy settings. Manufacturing continues to sputter in both the US and Japan. The Japanese manufacturing PMI eased to a revised 49.7 in September, down from 49.8 in August and above the market estimate of 49.6. This was the third straight month of contraction in factory activity, with a strong decrease in export orders. Business confidence dropped to its lowest since December 2022, as manufacturers don’t see a light at the end of the tunnel for the troubled manufacturing sector. In the US, the ISM manufacturing PMI was unchanged in September at 47.2, below the market estimate of 47.5. The contraction in manufacturing has extended for six straight months. New orders decreased in September, demand remains weak and manufacturers face uncertainty over the Federal Reserve’s monetary policy and the upcoming US election. USD/JPY has pushed above resistance at 143.69 and 144.41. Above, there is resistance at 145.25 There is support at 142.85 and 142.13
by OANDA
Ford (F): Waiting for the right moment after recent bounceAfter being stopped out at break-even with profits already taken on NYSE:F , we are now observing the chart again. We're pleased that we didn't buy any shares as the anticipated bounce did not materialize. However, Ford did bounce almost exactly at point X, which is where wave 2 should not have dropped below—it briefly wicked under before pumping back up. This is something we can respect, as we haven't been stuck below the designated level for an extended time. From a technical perspective, the plan is clear, but Ford is highly impacted by the current political climate, as car companies are in the spotlight right now. Despite this, we are planning for a push upwards after the recent dip. Ideally, we should not revisit the $9.64 level or, even better, avoid the wave (ii) level. Multiple levels need to be flipped for us to be confident that there's enough strength for future success. We've marked the "Ideal Entry Point" with a green dot, and it should be clear what we want to see. For now, we're standing on the sidelines, letting it develop and play out. If our scenario unfolds as anticipated, we can capitalize on it. Plan the trade and trade the plan.
NYSE:FLong
by freeguy_by_wmc
NIO (NIO): 55% Increase but Bearish Trends Still LoomA while back, we analyzed NIO, and recently, we’ve seen a considerable 55% increase in the stock price. However, despite this rise, nothing truly convinces us that this bearish trend has ended or that a sustainable upward movement is underway. The critical factor here is that none of the key levels that need to be breached for a trend reversal have been crossed. Specifically, we’re looking at the current Wave ((iv)) level around $6.04. If this level isn’t breached, it’s likely that we could see further declines, possibly dipping into the $2.99 range—or even lower, potentially as far as $1. It may seem dramatic, but considering NIO has already dropped up to 62% since January, repeating such a decline isn’t out of the question. In conclusion, the market remains quite weak, and we’re still cautious about the possibility of more significant setbacks. Always remember, it’s okay to stay on the sidelines and not invest in everything that catches your eye. 🤝
NYSE:NIOLong
by freeguy_by_wmc
29
Euro jumps to 10-day highThe euro has posted strong gains on Monday. EUR/USD is trading at 1.1126 in the North American session at the time of writing, up 0.49% today. The euro is at its highest level since Sept. 6. It’s a quiet day on the data calendar, with no tier-1 events. In the US, the Empire State Manufacturing index rebounded to 11.5 in September, much higher than the August reading of -4.7 and the market estimate of -3.9. This was a shocker as the manufacturer index had contracted nine straight times before today’s reading. Tuesday will be busier, with German ZEW economic sentiment index and US retail sales. German ZEW economic sentiment plunged to 19.2 in August, down from 41.8 in July. The market estimate for September stands at 17.1. US retail sales are expected to fall to 2.2% y/y in August, down from 2.7% in July. This week’s key event is the Federal Reserve meeting on Wednesday, with a 25 basis-point cut practically guaranteed. Will the Fed opt for an oversize 50-bps cut or play it safe with a 25-bps move? The rate cut odds continue to swing wildly. After last week’s producer price index reading, the odds of a 50-bps point cut soared to 41%, up from just 13% before the release, according to the CME’s FedWatch tool. That has increased to 59% today. The uncertainty over what the Fed will do could last right up to the wire. The Fed is in a quandary as it needs to balance the risk of inflation moving higher against the recent weakness in the labor market. A modest 25-bps cut may not be sufficient to improve the employment picture, while a 50 bps cut might send a message that the Fed believes the economy is in deep trouble. EUR/USD is testing resistance at 1.118. Above, there is resistance at 1.1160 There is support at 1.1060 and 1.1018
by OANDA
US30 | Trade ideaKey Points: Tesla: Shares fell 1.6% after a report that the company plans to produce a six-seat Model Y in China by late 2025. Boeing: Dropped 7.3% following a downgrade from Wells Fargo to "underweight" from "equal weight." Nvidia: Slumped nearly 10%, wiping out a record $279 billion in market value, marking the largest single-day decline for a U.S. company. U.S. Manufacturing: Edged up in August from an eight-month low but remained subdued, according to ISM data. Market Performance: S&P 500 fell 2.1% Nasdaq dropped 3.3% Dow declined 1.5% This marks the biggest daily percentage decline for these indexes since early August. Nine out of 11 S&P 500 sectors fell, with technology, energy, communication services, and materials leading the decline. Market Sentiment: Weakened amid concerns about the Federal Reserve’s interest rate decisions, with September being historically one of the worst months for stock market performance. Volatility: The CBOE Volatility Index (VIX) jumped 33.2% to 20.72, the highest close since early August. Trading Volume: Totaled 12.14 billion shares across U.S. exchanges, above the 20-day moving average of nearly 11 billion. Labor Market: Traders are awaiting labor market reports ahead of the August non-farm payrolls data. Fed Meeting: Scheduled for Sept. 17-18, with a 63% chance of a 25-basis point rate cut and a 37% chance of a 50-basis point cut, according to the CME FedWatch Tool. Market Breadth: On the NYSE, declining issues outnumbered advancers by 2.52-to-1, while on the Nasdaq, decliners outnumbered advancers by 3.5-to-1.
PEPPERSTONE:US30Short
by DynamicCapital-FX
India's Nifty 50: A Rising Star in a Geopolitical StormIn 2023, the Indian stock market, represented by the Nifty 50 index, has emerged as a standout performer. Outpacing its U.S. counterpart, the S&P 500, by a significant margin, the Nifty 50 has captured the attention of global investors. Several factors converge to explain this impressive performance, with geopolitical tensions playing a pivotal role. The Great Manufacturing Shift: India as a Prime Beneficiary One of the most compelling narratives driving India's economic ascent is the global shift in manufacturing. As the world grapples with heightened geopolitical risks, particularly the escalating tensions between the United States and China, businesses are seeking to diversify their supply chains. India, with its vast market, skilled workforce, and government's "Make in India" initiative, has emerged as a compelling alternative to China for many multinational corporations. Diversification of Supply Chains: Companies like Apple and Google are actively exploring manufacturing operations in India to reduce their reliance on China. This trend extends to various sectors, including pharmaceuticals, automobiles, and textiles. Government Support: India's government has proactively created a conducive business environment through infrastructure development, tax incentives, and ease of doing business reforms. These efforts have boosted investor confidence and accelerated the country's industrialization process. India's Economic Characteristics and Domestic Consumption India's strong domestic consumption and the rise in manufacturing are major factors in the country's economic expansion. The demand for goods and services is increasing due to the growing middle class and increased disposable incomes. The approach of consumption-led growth enhances the resilience of the Indian economy by acting as a buffer against external shocks. India's economy boasts several key characteristics: Rapid Growth: India has consistently been one of the fastest-growing major economies globally. Large Domestic Market: With a population of over 1.4 billion, India offers a vast consumer base, driving domestic consumption. Young Population: A large and young workforce provides a demographic dividend, fueling economic potential. IT and Services Dominance: The IT and services sector is a major contributor to India's GDP, with companies excelling in software development, outsourcing, and business process management. Agricultural Importance: Agriculture remains a crucial sector, employing a significant portion of the population, although its contribution to GDP is declining. Challenges and Opportunities While India's economic trajectory is promising, it faces challenges such as: Infrastructure Gaps: Improving infrastructure, including transportation, energy, and digital connectivity, is essential for sustained growth. Poverty and Inequality: Addressing poverty and reducing income inequality remains a priority. Education and Skill Development: Investing in education and skill development is crucial to enhancing human capital. Environmental Concerns: One of the main challenges is balancing environmental sustainability with economic growth. Despite these challenges, India offers immense opportunities for businesses and investors: Large Consumer Market: The growing middle class presents a lucrative market for consumer goods and services. Favorable Government Policies: The government's focus on economic reforms and ease of doing business creates a conducive environment for investment. Digital Transformation: India's rapid adoption of digital technologies presents opportunities in e-commerce, fintech, and digital payments. The Road Ahead While the Nifty 50's performance has been impressive, challenges remain. Inflationary pressures, global economic uncertainties, and the potential impact of a prolonged geopolitical standoff could pose risks. However, India's demographic dividend, its digital transformation, and its focus on renewable energy offer promising avenues for long-term growth. Continued focus on infrastructure, education, and skill development will be crucial for realizing its full potential. In today's complex geopolitical environment, India seems well-placed to take advantage of the opportunities arising from global supply chain disruptions. The performance of the Nifty 50 index reflects India's increasing economic influence and its potential to emerge as a global manufacturing and consumption hub.
NSE:NIFTYLong
by signalmastermind
China Caixin PMI SummaryChina Caixin PMI Summary Surveys completed by 650 SME's in China have indicated that China's smaller manufacturing and service providers remain in expansionary mode in April 2024 with all three data releases coming in as expected or higher than expected with readings >50 = Expansionary. Manufacturing - 51.4 Increased from 51.1 in Mar 2024 to 51.4 in Apr 2024 ✅Above expectations of 51 Services - 52.5 Decreased from 52.7 in Mar 2024 to 52.5 in Apr 2024 ✅In line with expectations of 52.5 Composite - 52.8 Increased from 52.7 in Mar 2024 to 52.8 in Apr 2024 ✅Above expectations of 52.5
ECONOMICS:CNCOMPPMI
by PukaCharts
Macro Monday 45~The China Caixin PMI (Manu, Serv & Composite)Macro Monday 45 The China Caixin PMI (Services and Composite released Today Monday) Last week week we looked at the China Caixin Manufacturing PMI which will revise today with its updated readings that were released last Tuesday. We will also look at the China Caixin Services PMI and the Caixin Composite PMI (a combination of the Services and Manufacturing PMI's) as these will both be released later today. 1.Manufacturing PMI – Already released 2. Services PMI – Released Today 6th May 2024 3. Composite PMI Released Today 6th May 2024 (both 1 + 2 combined) What is the Caixin PMI? ▫️ The is an S&P Global report released monthly. ▫️ The Caixin PMI focuses on small & medium sized enterprises (SME’s) in China. ▫️ Surveys a small sample size of 650 private and state owned manufacturers and service providers. Why Focus on China PMI's? China, the 2nd largest economy in the world at approx. $18 trillion is often referred to as the world’s manufacturing superpower. In 2019, the Chinese manufacturing sector contributed nearly $4 trillion towards the country’s total economic output. Manufacturing accounted for almost 30% of China’s GDP during 2019 demonstrating the importance of manufacturing and the surveys completed by the manufacturers through the Purchaser Managers Index (PMI) surveys. Incredibly, in 2023 China’s manufacturing continued to increase and contributed 31.7% to China GDP, furthermore China’s exports reached record highs of $3.36 trillion. For a country that gets a lot of bad economic press, the economic data from manufacturing and exports suggests China is adaptable and is currently in expansionary territory. This will be further evident from the PMI charts we are about to review also. Like most PMI’s the data will generally be derived from the following sub indicies; New Orders, Output, Employment, Supplier Deliveries and Inventories. Reading both PMI’s: >50 indicates expansion in the manufacturing sector compared to the previous month. < 50 represents contraction A reading of 50 indicates no change. The Charts China Caixin Manufacturing PMI - APR 2024 ✅51.4 = Expansionary (>50 is expansionary) ▫️ Increased from 50.9 in Feb 2024 to 51.1 in Mar 2024 ▫️ Increased from 51.1 in Mar 2024 to 51.4 in Apr 2024 – Figures for April were released on the 30th April 2024 (last week). ✅The Caixin Manufacturing PMI has remained expansionary for 6 consecutive (Nov 2023 – Apr 2024). It has been on a long term recovery since the Feb 2020 lows of 40.3, since then making a series of higher lows and recently sustaining 6 months of expansionary readings. China Caixin Services PMI - Mar 2024 ✅52.7 = Expansionary (>50 is expansionary) ⏳ April Figures released today (pending) ▫️ Increased from 50.2 in Sept 2023 to 52.7 in Mar 2024 ▫️ Increase/decrease from 52.7 in Mar 2024 to ??? in Apr 2024 – Figures for April are released on today Monday 6th April 2024. ✅The Caixin Services PMI has remained expansionary for 15 consecutive months (Jan 2023 – Mar 2024). It has been on a long term recovery since the Feb 2020 lows of 26.5 when services took a huge hit during COVID-19 lockdowns, since then making a series of higher lows and recently sustaining 15 months of expansionary readings. China Caixin COMPOSITE PMI - Mar 2024 ✅52.7 = Expansionary (>50 is expansionary) ⏳ April Figures released today (pending) THIS IS THE SUBJECT CHART AT OUTSET ▫️ Increased from 50 in Oct 2023 to 52.7 in Mar 2024 ▫️ Increase/decrease from 52.7 in Mar 2024 to ??? in Apr 2024 – Figures for April are released on today Monday 6th April 2024. ✅The Caixin Composite PMI has remained expansionary for 5 consecutive months (Nov 2023 – Mar 2024). It has been on a long term recovery since the Feb 2020 similar to Manufacturing and Services PMI charts above. Looking at the composite chart, one can see that we moving sideways since Dec 2023 (Dec 52.6, Jan 52.5, Feb 52.5 & Mar 52.7). We are comfortably in the expansionary green zone on the composite. In Summary (subject to tomorrow’s readings for the Services and Composite PMI but we assume expansionary) China Caixin Manufacturing PM I ↗️ Expansionary The Caixin Manufacturing PMI for April 2024 rose to 51.4, marking the sixth straight month of expansion and the fastest growth since February 2023 China Caixin Services PMI ↗️ Expansionary As of March 2024, the Caixin Services PMI increased slightly to 52.7, indicating growth in the services sector for the 15th consecutive month (April 2024 Figures Release Today) China Caixin COMPOSITE PMI ↗️ Expansionary The Composite PMI reached 52.7 in March 2023, the highest since May 2023, showing the fifth consecutive month of growth in overall private sector activity. (April 2024 Figures Release Today) All the above readings suggest a continued expansion across China’s services and manufacturing sectors, reflecting improvements in demand and business activity across the SME cohort. All these charts are available on my Tradingview Page and you can go to them at any stage over the next 5 - 10 years press play and you'll get the chart updated with the easy visual guide I provided. I hope its helpful Lets get after it again this week 💪🏻 PUKA
ECONOMICS:CNCOMPPMI
by PukaCharts
Macro Monday 40 - Euro Area Composite PMI Macro Monday 40 Euro Area Composite PMI (Released this Thurs 4thApril 2024) The Euro Area Composite PMI (Purchasing Managers’ Index) is a significant coincident economic indicator that provides insights into the current overall health of the eurozone economy. The Euro Area Composite PMI data is collected from a representative panel of around 5,000 manufacturing and services firms around the EU and then a weighted average of the two is provided to create the composite reading. This index tracks variables such as sales, new orders, employment, inventories, and prices. Very similar to the US PMI that we previously covered. The Chart The chart illustrates the following metrics; 🟢Manufacturing PMI (green line) 🔴Services PMI (red line) 🔵Overall composite PMI (Thick Blue Line) The green zone (>50) illustrates the economic expansion zone and the red area illustrates the economic contraction zone (<50). The 50 level itself is neutral. Now, let’s very briefly cover the last three weeks of Macro Mondays No. 38, 39 & todays 40. These all featured the Eurozone economic health and can be valuable metrics to remain informed on. With a click of my charts in trading view you can remain updates with a visual easy on the eye. EU Current Sentiment Outlook (negative but improving) 1.The Euro Area Economic Sentiment Index is based on current sentiment surveys from EU Businesses and consumers for all 27 EU Member States. -The current economic outlook as distinguished by businesses and consumers in the EU is currently below average at 96.3 (<100 is below average and >100 is above average). - We have seen an improvement since Sept 2023 with an increase from 93.4 to 96.3 at present but remain in the negative. EU Forward Looking Sentiment (Firmly Positive) 2.The Euro Area ZEW Economic Index is a 6 month forward looking economists outlook for 20 of the 27 Euro Member states. -The ZEW Index is anticipating optimistic economic conditions for the coming 6 months with a current reading of 33.5 which is well above the historical average of 21.39 on the chart. Economists in then EU see things improving over the coming two quarters. EU Manufacturing and Services current performance composite (Neutral - leaning negative) 3.Featured today, the Euro Area Composite PMI is a coincident indicator offering real-time health of the Eurozone economy through data collected from manufacturing and services firms. -The Euro Area Composite PMI is currently close to neutral at 49.9 (just under the neutral 50 line) demonstrating that over the recent month we have been in marginal contraction in the EU according to the manufacturing/services composite. - However, if we look at the individual Manufacturing PMI we can clearly see we are in negative/contractionary territory at 45.7 (green line) whilst the services PMI is rising into expansionary territory at 51.1 (red line). This is common theme in the US PMI at present also with services performing better than manufacturing sector. The beauty of these charts is that you can go onto my TradingView Page and press update, and the chart will update you with all these metrics, informing you at a glance with how these metrics are performing collectively with a nice visual guide. Thanks again for coming along and I hope this additional Eurozone chart helps you in your current and future understandings of EU Economic Sentiment, Forward looking economists sentiment and how manufacturing and services firms are feeling overall. Bottom line is, economic sentiment appears to be leaning optimistic for the immediate future, however we await more readings for a conclusive trend direction from the coincident indicators, the ZEW Index and the Euro Area PMI index. PUKA
ECONOMICS:EUCOMPPMI
by PukaCharts
NIO (NIO): Downward Journey and the Glimmer of Long-Term HopeNIO (NIO): NYSE:NIO NIO has recently slipped below the $7 mark, signaling a possible continuation of its significant downward trajectory. After peaking at $66.99, NIO has been on a prolonged decline that shows no immediate signs of concluding. While the descent is expected to persist, it's critical that the price stays above the $1.19 threshold to maintain a bullish outlook for NIO's future, preventing a drastic plummet towards zero—a scenario that seems less likely given the limited downside left. Within this framework, we're observing the development of Wave (C) emerging from Wave (B), structured as a five-wave decline aiming lower. Notably, Wave 3 touched the 161.8% extension at $8.84, succeeded by Wave 4. We're now bracing for Wave 5, which might approach the $2.13 support zone. Setting a broad stop-loss might seem risky, yet the potential for an upward surge is compelling. If NIO is indeed navigating through an overarching Wave II, poised for a multi-year rebound, it could dramatically exceed its all-time high of $67, hinting at an increase well over 3000%. This optimistic projection aligns with a possible long-term bullish trend following the current decline. Currently, it's too early to pinpoint exact entry points, given the substantial risk of further drops. Attempting to do so now would be akin to catching a falling knife without adequate support nearby. Patience and vigilant monitoring are crucial at this juncture to avoid premature entries. Once signs of market stabilization or a trend reversal become apparent, we can then identify strategic entry points to capitalize on NIO's potential long-term growth. This cautious approach aims to balance risk management with the prospect of significant returns, awaiting the market's eventual recovery and NIO's ascent.
NYSE:NIOLong
by freeguy_by_wmc
Macro Monday 24~New York Empire State Manufacturing Index MACRO MONDAY 24 The New York Empire State Manufacturing Index Trading View Ticker: $USNYESM The New York Empire State Manufacturing Index (NYESM Index) is a month to month economic indicator that measures the general business conditions in the manufacturing sector of New York State. It is published by the Federal Reserve Bank of New York and is based on a survey of 200 executives from the largest manufacturing firms in the state of New York. The top six manufacturing states in the U.S. are California, Texas, Ohio, Illinois, Michigan, Pennsylvania and then New York. Whilst New York is only ranked the 7th largest state in terms of manufacturing jobs, the state is strong in pharmaceutical manufacturing, printing and publishing, and electronics, with some of the top tier manufacturing companies including big names such as Pfizer, IBM, Lockheed Martin and L3Harris Technologies. Total output from manufacturing in New York was $75.24 billion in 2021. In comparison total output from manufacturing by the largest manufacturing state in the US - California was $394.83 billion in 2021, magnitudes larger than New York. So whilst the New York Manufacturing Index holds some weight in terms of its reputation, location and large well known firms, it is a smaller index and it should be considered in combination with other indexes/metrics to assess the broader economic picture. How to Read the Index As with many of the survey led indexes, it is a diffusion index that oscillates above and below the 0 level. Above 0 suggests manufacturing activity is expanding, below zero means manufacturing activity is contracting. The Chart In today’s chart will also attempt to see how good the NYESM Index has been at predicting general market performance/direction using the S&P500 CBOE:SPX as a market gauge: 1. One of the main findings on the chart is that 7 out of the 8 times the NYESI fell below 0 for longer than 2 months (shaded areas) the S&P500 moved lower or did not increase in price. - This suggests that in the event the NYESM Index falls below 0 for greater than 2 months there is a higher probability that market performance will be impaired. 2. The one time the S&P500 increased whilst the NYESM Index was below 0 for greater than 2 months was from July 2022 to present. - The index during this period was very volatile jumping briefly above the 0 level before falling under it again (see the red box). It is the only time in history that this occurred on the index. One could compare it to a sector gasping for air above the 0 level over that period, however the S&P500 was rallying hard as the index gasped for air. This highlights the need to review other indexes and charts, and not rely solely on the NYESM Index in isolation. One such additional index that might shed some light on the S&P500 rally during point 2 above is the relative strength of the ISM Services PMI which has remained in expansionary territory throughout the same period. The Services Index is designed to measure the economic activity and health of the services sector in the United States some of which are professional services (accounting, legal, etc.), healthcare (hospitals, clinics & other practitioners), accommodation, leisure and food services. One could imagine with everyone cooped up during COVID-19, the resilience in the services metric could help explain the resilience in the market with people enjoying more experience orientated activities. We covered ISM Services Vs ISM Manufacturing on Macro Monday 22 which you can check below in the attaching links. The ISM metrics cover all areas of the U.S. and are considered a more all-encompassing measure of manufacturing and services in the U.S. Regardless looking at individual states such as California, Texas and New York can provide clues and insights into the overall trend. Current Readings & Expectations The New York Empire State Manufacturing Index increased from Sept to Oct 2023 demonstrating a sharp rise from -4.6% to +9.1% pushing the Index into expansionary territory. Expectations for this Fridays release is a reduction of 7.1% resulting in a reading of 2 for the month of Nov 2023. This would still be expansionary for manufacturing in NY State but a reduction all the same, demonstrating less manufacturing to the prior month. Lets see how the Index performs this Friday. PUKA
ECONOMICS:USNYESMI
by PukaCharts
Macro Monday 35~Richmond Fed Manufacturing and Services IndexMacro Monday 35 Richmond Fed Manufacturing and Services Index (Released Tuesday 27th Feb 2024 @ 15:00 GMT or 9:00 CT) The Richmond Manufacturing and Services Indexes measures the conditions of each respective industry for the 5th Federal Reserve District which covers the District of Columbia (Washington DC), Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia. Both the indexes are derived from surveys conducted each month of relevant businesses in each respective industry. ▫️ The Richmond Manufacturing Index survey focuses on questions related to production, new orders, employment, prices, capacity utilization, and future expectations within the manufacturing sector. ▫️ The Richmond Services Index survey, on the other hand, asks questions about business activity, new business, employment, prices, inventory, capital expenditures, and future expectations within the service sector. While the specific questions and data points might differ between the surveys, the basic structure and methodology for calculating the diffusion indices remain consistent; The Chart You can see that the green zone is expansionary and the red zone is contractionary. At present Manufacturing (blue line) is in fairly deep contraction at -15 and whilst Services (red line) has recovered from -22 (Apr 2023) to +4 (Jan 2024). Reading the Chart: 🟢Above 0 is expansionary (green zone) 🔴Below 0 is contractionary (red zone) Historic Recession Patterns I have highlighted some patterns on the chart (orange) which demonstrate that historically when Services and Manufacturing declined for a period of between 27 and 45 months a recession can follow such declines. Importantly there was a period of decline in from Apr 2010 – Dec 2013(45 months) which did not result in a recession. During this period Services remained elevated and only fell marginally into contractionary territory for brief spells (which could be a tell of some buoyancy in the market during this period). At present we are 32 months into a general decline in both manufacturing and services. Services have been on the incline since Apr 2023 and recently moved into expansionary territory at +4 in Jan 2024 which is promising and may indicate the beginning of a trend change, however until manufacturing follows this trajectory I believe we are still at risk of repeating history. Manufacturing is down at -15 at present and needs to start as sustainable recovery into expansionary territory. It has remained more a less in contractionary territory since Apr 2022. Why even consider the Richmond Fed index? I think the best way to outline the utility of the Richmond Fed is to compare it to the Dallas Fed Index which will be released later today (Monday). I have covered the Dallas Fed on a previous Macro Monday (link will be in the comments) and I will update you on this index when it is released later today also. Both the Richmond Manufacturing Index and the Dallas Fed Manufacturing Index are valuable indicators of regional manufacturing activity, each offering unique insights. Dallas Fed Index focuses on a major economic manufacturing hub – Texas (An estimated 14.4 million people are employed in the state of Texas) The Dallas Fed Manufacturing Index covers manufacturing activity mainly in the state of Texas. The state of Texas ranks 2nd only to California in factory production & comes in at 1st as an exporter of manufactured goods, thus Texas is an important state for gauging manufacturing & production in the U.S. economy (not services is not included here). Texas also contributes an incredible c.10% towards the U.S. Manufacturing gross domestic product making the index an important metric to consider towards potential GDP trends in the U.S. So, the Dallas Fed is very good at gauging manufacturing in the U.S. simply because of the volume of manufactured goods from the region. Whilst the Dallas Fed Index focuses on a high volume of manufacturing activity and production within the state of Texas, it also specifically focuses on durable goods industries like aerospace, energy, and technology whilst the Richmond Index below is much more diversified in terms of its manufacturing industries, its services sector and regionally diverse. Richmond Index focuses on more economically diverse regions (inclusive of a large services sector) (An estimated 23 - 25 million people are employed in the fifth federal reserve district) This Richmond Index covers the Fifth Federal Reserve District, encompassing an incredibly diverse range of industries across six states. Its difficult to portray the expansive array of various manufacturing and services within these regions but I will try. This index goes far beyond the specific performance of durable goods in an isolated state like Texas and reflects manufacturing and services health across various sectors and regions. It offers economists a broader picture of manufacturing health in the U.S. compared to indices focused on specific industries or regions. To give you an idea of the diverse ranges here: In Washington DC you have a major corporate & services hub; think Accenture, Deloitte, KPMG, Capital One) combined with tech and comms center with the likes of Amazon web services, Verizon Communications & General Dynamics. You obviously have a strong political and legal presence in this region also. Maryland, Virginia and North Carolina appear to have a very strong healthcare dynamic with the likes of Bon Secours Mercy Health System, VCU Health System, Duke University Health System and Atrium Health. Baltimore in Maryland has the Johns Hopkins Hospital and Health System employing over 40,000 employees. All these states appear to have strong university presences also (offering education employment and services) which likely supply the necessary expertise for the medical manufacturing and services that are present across these states. South Carolina is known for having one of the major three Boeing aircraft manufacturing facilities and is also known the manufacturing of Michelin tires. Across all six states you have a rich and diverse farming and forestry industry, food production facilities and waste productions plants. Walmart, Home Depot, Target and Amazon are also present across all these states. You can clearly see why the Richmond Fed offers a more nuanced and complex picture of the U.S. manufacturing and services economy. This diversity in sectors, regions and employment demographic gives us a different insight against the more centralized manufacturing hub contained in Texas under Dallas Fed Index. Furthermore, in terms of employment the six states included in the Richmond Fed Index is approx. 24 million versus the approx. 14.4 million employed in the state of Texas (under the Dallas fed Index). Both indexes are very valuable and should both be equally considered in our assessments of the U.S. economy. Thanks for coming along and learning about the chart history on the Richmond Fed Index, the historic trends and the combined utility of both the Dallas and Richmond Fed Index . PUKA
ECONOMICS:USRFMILong
by PukaCharts
9
EUR/USD eyes German inflationEUR/USD is slightly lower on Wednesday. In the North American session, the euro is trading at 1.0751, down 0.20%. Germany's CPI is expected at 0.2% m/m on Friday, which would confirm the initial estimate from two weeks earlier. On an annualized basis, the initial estimate for CPI came in at 2.9% in January, down sharply from 3.7% in December. A deceleration in energy and food costs was the driver of the downturn in January, which was the lowest inflation rate since June 2021. Core inflation has also been falling, with the initial estimate showing a drop to 3.4%, its lowest rate since June 2022. The drop in German inflation is not all that surprising, as the eurozone's largest economy has been struggling. Germany's manufacturing sector has been in prolonged decline and the services sector is sputtering, with five declines in the past six months. The economy declined in the fourth quarter and another contraction in Q1 would mean that Germany will have entered a technical recession. The eurozone is also grappling with a weak economy, with the latest evidence earlier this week as retail sales slipped 1.1% m/m in December. Despite weak economic conditions in the eurozone and Germany, the European Central Bank has been hesitant to cut interest rates. ECB members have expressed concern that inflation could make a comeback if the ECB were to cut rates too early. That could force the ECB to raise rates again and the optics of such a zig-zag would be disastrous. For now, the ECB remains hawkish on rate policy and is content to continue holding rates until inflation falls closer to the 2% target. Since last week's Fed meeting, a host of Fed members have delivered the message that inflation is heading in the right direction but the Fed plans to be patient and is in no rush to lower rates. The markets have taken note of the Fed's pushback and have pared expectations of a rate cut in March to 18%, down from over 70% in January, according to the CME's Fed Watch tool. EUR/USD tested support at 1.0746 earlier. Below, there is support at 1.0704 There is resistance at 1.0822 and 1.0864
by OANDA
"SWIM: Double Bottom Breakout Signals 80% Return Potential!"SWIM Stock: Double Bottom Breakout Signals Potential 80% Returns in Producer Manufacturing Industry SWIM stock, a prominent player in the producer manufacturing industry, is on the brink of a significant breakthrough as it forms a double bottom pattern. With the potential for a breakout back to $4.70, investors could see returns of up to 80%. While still in an accumulation phase, $4.70 is expected to act as a take-profit zone before a likely retracement for re-entry amid sideways movement. Let's explore the dynamics of SWIM stock and the opportunities it presents in the manufacturing sector. Understanding SWIM Stock and Latham Group, Inc. SWIM, or Latham Group, Inc., operates as a designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools, pool liners, and pool covers. The company was founded on December 6, 2018, and is headquartered in Latham, NY. With its strong focus on quality and innovation, Latham Group has established itself as a leader in the industry, catering to the needs of residential customers across multiple continents. Anticipated Double Bottom Breakout SWIM stock is currently exhibiting a double bottom pattern, a bullish technical formation that suggests a potential reversal of the downtrend. The breakout from this pattern could propel the stock back to $4.70, offering investors significant returns of up to 80%. This bullish outlook is supported by the current chart setup. Strategic Accumulation Phase Despite the potential for a breakout, SWIM stock remains in an accumulation phase, indicating ongoing investor interest and accumulation of shares at lower price levels. As the stock approaches $4.70, investors may consider strategically accumulating shares in anticipation of the breakout and subsequent price appreciation. Take-Profit Zone and Retracement Strategy While $4.70 is anticipated to serve as a key resistance level and take-profit zone, investors should exercise caution and consider scaling out of their positions to lock in profits. Following the take-profit zone, a retracement may occur, presenting an opportunity for re-entry as the stock consolidates sideways. Prudent investors may utilize this retracement to strategically add to their positions and capitalize on future price movements. Conclusion: Capitalizing on Manufacturing Sector Opportunities In conclusion, SWIM stock presents a compelling opportunity for investors in the producer manufacturing industry as it prepares for a potential double bottom breakout. With the potential for significant returns and strategic accumulation opportunities, investors should closely monitor SWIM stock's price action and consider deploying capital strategically to maximize returns in the dynamic manufacturing sector.
NASDAQ:SWIMLong
by UnknownUnicorn2319099
Euro extends losses after weak PMIsThe euro is down sharply on Tuesday. In the European session, EUR/USD is trading at 1.0969, down 0.62%. The euro hasn't posted a gain since Wednesday. The US dollar has hit a rough patch on market expectations that the Federal Reserve will cut rates up to six times this year and that the current rate-tightening cycle is over. The euro has pummelled the US dollar since November 1, falling 5.3%. The New Year started with manufacturing releases from Germany and the eurozone earlier today. German manufacturing PMI was revised to 43.3 in December from a preliminary 43.1, compared to 42.6 in November and above the consensus of 43.1. The Eurozone Manufacturing PMI was also revised upwards to 44.4, up from 44.2 in the preliminary estimate and above the consensus of 44.2. The manufacturing sector in Germany and the eurozone is mired in a prolonged slump and hasn't shown growth since June 2022. There isn't much to cheer about but there is hope that the worst of the downturn is behind us as we move into 2024. Germany and the eurozone will post their inflation reports on Thursday. Last week, Spain posted lower-than-expected inflation numbers. Inflation has eased to 3.2% in Germany and 2.4% in the eurozone, as the ECB's target of 2% is getting closer. If the data shows that inflation eased in Germany and the eurozone as well, it will put pressure on the European Central Bank to cut rates in the first half of 2024. ECB President Lagarde has pushed back against rate cuts but she may have to shift her hawkish stance or risk tipping the weak eurozone economy into a recession. If the upcoming inflation reports indicate that inflation continues to fall, we can expect the voices in the ECB calling for looser policy to get louder. There is resistance at 1.1069 and 1.1102 1.0958 and 1.0887 are the next support lines
by OANDA
Which Robotics Stocks Are You Watching?This stock's pattern is an intermediate-term trend correction to bottom formation that is near completion. It may head sideways for a bit, but when it does breakout of this consolidation, there is potential for swing style runs to develop. A Dark Pool buy zone triggered at the bottom's lows. And there are Pro Trader footprints in each run out of a new low. NYSE:ROK is in industrial automation, aka Robotics. There is a huge demand building for manufacturing via robotics in the US as many manufacturers are no longer reliant upon Chinese manufacturing, which has become more expensive in recent years. Robotics can easily displace human workers globally as it becomes more popular and used extensively. Hence, institutional holdings is quite high in this company. The So this stock may also be suitable for longer-term investment opportunity.
NYSE:ROK
by MarthaStokesCMT-TechniTrader
Euro jumps to 5-month highThe euro has posted strong gains on Wednesday. In the North American session, EUR/USD is trading at 1.1121, up 0.72%. The US dollar is under pressure this week as we're seeing a risk-on mood in global markets. The week between Christmas and New Year's is normally quiet, with a very light data calendar. However, investors are anticipating the Federal Reserve to cut rates early next year and this sentiment has sent equity markets higher while weighing on the US dollar. The euro is powering higher, with gains of 2.1% in December and 2.9% in November against the retreating US dollar. Federal Chair Powell surprised the markets when he pencilled in three rate cuts for next year. Investors had braced themselves for Powell to push back against rate cut expectations, a script he has followed for months. This time, however, Powell jumped on the bandwagon although Fed members have since urged the markets to tamper their expectations of up to six rate cuts next year. The markets have priced in an initial rate cut in March, with over 150 basis points in cuts for all of 2024 according to the CME's FedWatch tool. There is a similar disconnect between the markets and the European Central Bank. The markets are looking at six rate cuts next year, perhaps as early as March, while the ECB has tried to dampen these expectations. ECB President Lagarde stated last week that members had not discussed a rate cut at the December meeting, at which the central bank held the cash rate at 4.0% for a second straight time. I expect that markets in both the US and Europe will remain much more bullish about rate cuts than the central banks. It's a light data calendar between Christmas and New Year's in the US. The Richmond Manufacturing Index decelerated to -11 today, down from -5 in November and missing the market consensus of -6. On Thursday, unemployment claims are expected to drop to 205,000, down from 210,000 a week earlier. EUR/USD is testing resistance at 1.1072. Above, there is resistance at 1.1130 1.0982 and 1.0924 is providing support
by OANDA
New Zealand dollar climbs ahead of NZ Manufacturing SalesThe Japanese yen has surged on Thursday. In the North American session, USD/JPY is trading at 144.00, down a massive 2.25%. Earlier, the yen dropped as low as 143.79 per dollar, which marked the yen's highest level since August 10. The yen has posted its biggest one-day jump of the year against the dollar on Thursday after Bank of Japan policy makers provided clear hints that the central bank is planning a major shift in monetary policy. Governor Kazuo Ueda said earlier on Thursday that the BoJ would face an "even more challenging" situation at the end of the year and in early 2024 regarding monetary policy guidance and said the BoJ would have to decide which interest rates to target once it ends negative rates. Ueda's hint that negative rates might soon end followed comments from BoJ Deputy Governor Ryozo Himino on Wednesday. Himino discussed the potential consequences if the BoJ were to raise rates into positive territory. The BoJ is generally tight-lipped about its plans, and these comments from senior BoJ officials were unusual. The markets have interpreted the remarks as signals about a potential shift in policy, which has sent the yen soaring on Thursday. The BoJ meets next on December 18-19, and the comments from Ueda and Himino have turned the meeting "live", as the markets will be watching for a change in policy at the meeting. At previous meetings, tweaks in policy have sent the yen sharply higher and even speculation of a move can send the yen soaring, as evident today. The US releases nonfarm payrolls, one of the most important economic releases, on Friday. The ADP employment report isn't considered an accurate indication of job growth but is still closely watched, as it is released just two days prior to the nonfarm payrolls report. ADP didn't show much change in November, dropping to 103,000 compared to a downwardly revised 106,000 in October. However, this was well below the consensus estimate of 130,000. Nonfarm payrolls are expected to rise to 180,000, after an October gain of 150,000. If the nonfarm payrolls report misses the estimate, the US dollar will likely lose ground in Friday's North American session. . USD/JPY has breached support levels at 145.96 and 144.70. The next support level is at 143.69, followed by 142.73 There is resistance at 148.93 and 150.74
by OANDA
Macro Monday 18~Durable Goods SignalsMacro Monday 18 Using New Orders for Durable Goods to Anticipate Market Direction This week we are using the Manufacturers New Orders for Durable Goods Survey data (“Durable Goods”) to help anticipate price movements on the S&P500. The 30 month moving average for Durable Goods can act as a threshold level for buy and sell signals for the S&P500 whilst also providing advance warnings of recession and/or capitulation events. This has been clearly illustrated in the chart. Durable Goods Explained Durable goods orders is a broad-based monthly survey conducted by the U.S. Census Bureau that measures current industrial activity which proves to be is useful as an economic indicator for investors. Durable goods orders reflect new orders placed with domestic manufacturers for delivery of long-lasting manufactured goods (durable goods) in the near term or future. A high durable goods number indicates an economy on the upswing while a low number indicates a downward trajectory. Durable goods orders tell investors what to expect from the manufacturing sector, a major component of the economy, and provide more insight into the supply chain than most indicators. This can be especially useful in helping investors understand the earnings in industries such as machinery, technology manufacturing, and transportation. What’s Included in Durable Goods? Durable goods are expensive items that last three years or more. As a result, companies purchase them infrequently. Examples include machinery and equipment, such as computer equipment, industrial machinery, and raw steel, as well as more expensive items, such as steam shovels, tanks, and airplanes—commercial planes make up a significant component of durable goods for the U.S. economy. Many analysts will look at durable goods orders, excluding the defense and transportation sectors as large once off orders can often skew the figures. Durable goods orders data can often be volatile and revisions are not uncommon, so investors and analysts typically use several months of averages instead of relying too heavily on the data of a single month. In our chart we have found the 30 month moving average to be particularly apt as a threshold level The Chart In the chart we have the Durable Orders metric in blue and the S&P500 in baby blue. The 30 month moving average on Durable Goods (Dark Brown Line) is used as a threshold level for buy and sell signals. When the blue line for new orders of Durable Goods definitively passes the 30 month moving average (Dark Brown Line) this provides the buy or sell signal based on whether it moves above or below the average. Main Findings 1. When Durable Goods Orders(blue) fall below the 30 month moving average(brown) this is sell signal 2. When Durable Goods Orders(blue) break above the 30 month moving average(brown) this is a buy signal 3. Declining durable goods and/or a fall below the 30 month moving average has offered advanced warning of recession and/or capitulation. Sell Signal Record (Blue line crossing below Dark Brown Line) ▫️ In Oct 2000 five months before the Dot.Com Crash which commenced in Mar 2001, the Durable Goods Moving Average provided a sell signal offering an five month advanced warning of recession. ▫️ In Dec 2007 the Great Financial Crisis (“GFC”) commenced and whilst New Orders for Durable Goods had not passed below the moving average before the recession it did pass the moving average mid recession signalling an advance warning of the major capitulation event of the GFC crash. Once again Durable Goods was of great utility in avoiding unnecessary losses. ▫️ A sell signal triggered in Oct 2014 and whilst there was no crash, the S&P500 price oscillated sideways for >24 months post signal and only increased in value by 9%. During this 24 month period capital would have been better allocated somewhere offering a better than 9% return. ▫️ In Feb 2019 one year before the COVID-19 Crash the Durable Goods Moving Average provided an advanced sell/recession signal, and whilst the S&P500 did rally c.13.5% after the signal over the subsequent 12 months, the S&P500 ultimately fell 23% thereafter in a matter of months taking back all those gains and more. Buy Signal Record (Blue line crossing above Dark Brown Line) ▫️ As you can see from the chart the buy signals provide a great confirmation of trend, that price on the S&P500 will likely continue in an upwards trajectory. ▫️ For the four buy signals confirmed we had 50 months of upwards price pressure on the S&P500 on the first two occasions and on the latter two 18 months and 15 months of upwards price action. ▫️ Taking the four aforementioned buy signals, an the average return was 60.5% f(max return possible from a buy signal the market high). ▫️ The performance from a buy signal to sell signal was an average of 43% across the four instances. The chart demonstrates that using the 30 month moving average for Durable Goods New Orders can very useful in determining market trend. At present we are well above the 30 month moving average and appear to be trending upwards. We can continue to monitor this chart and watch for a cross of the 30 month moving average as an additional confirmation of a change to a bearish trend for the S&P500 when it happens. For now this is just another chart to help us identify bearish/bullish trend changes by using the economic data from Manufacturers New Orders for Durable Goods. As always folks, stay nimble PUKA
FRED:DGORDER
by PukaCharts
Euro takes a tumble after ECB's hikeThe euro has steadied on Friday. In the European session, EUR/USD is trading at 1.0665, up 0.20%. The European Central Bank's rate decision went right down to the wire on Wednesday. It was unclear whether the central bank would hike or hold, with strong reasons to support each position. In the end, the ECB opted to hike, choosing the fight against inflation over the threat of recession. The ECB raised its key interest rate to a record high of 4.0%, but the euro responded with sharp losses. The reason? The ECB rate statement signalled that the rate-tightening cycle is likely over, which sent the euro and eurozone bond yields lower and European stocks higher. EUR/USD fell 0.80% on Wednesday and dropped as low as 1.0631, its lowest level since March. ECB policy makers have been grappling with a dilemma, which made the rate decision so difficult to call. Inflation is running at a 5.3% clip, more than double the target rate of 2%, but high borrowing costs and the slowdown in China have weighed heavily on eurozone growth. In the eurozone, the services sector has been weakening and manufacturing continues to contract. Germany, the traditional locomotive of the eurozone, is likely in recession and is struggling with an inflation rate of 6.1%. Against this background of high inflation and sluggish growth, the ECB opted for a 'dovish hike', with the rate statement noting that rates have likely reached the peak level. Lagarde didn't shed any light on the ECB's rate path, but the futures markets brought forward expectations of a rate cut to June 2024, compared to September 2024 before the rate decision. Lagarde stated at a follow-up press conference that it's too early to say that rates have not peaked, but the markets beg to differ and are already looking ahead to rate cuts, which indicates some dissonance between the stances of the central bank and the markets. In the US, the week wraps up with two tier-1 events. The Empire State Manufacturing Index, which plunged to -19 in August, is expected to improve to -10 points. UoM Consumer Sentiment is expected to dip to 69.1, down from 69.5 and inflation expectations are projected to remain unchanged at 3.5%. EUR/USD is testing resistance at 1.0654. Next, there is resistance at 1.0732 There is support at 1.0609 and 1.0531
by OANDA
1
Continental CON Long term bullish cycleOur probability indicator has observed Long Term BOS (Break-of-Structure) on Daily TF. Essentially what that means is that we closing in on bearish cycle for XETR:CON and new bullish leg is forming for longterm continuation of new bullish cycle. We expect further bearish correction to 68.30 - 64.80 zone ( Current Inverse H&S pattern support zone ) where conditions for perfect LONG entry occur. Take-Profit should be set within High resistance zone 114.50 - 139.30
XETR:CONLong
by wikitrades