Markets
AUDCAD possible reversal to the upside
AUDCAD is in a Weekly downtrend and after
a push down it started making higher lows,
which tells us that price is now ranging and
is trading between its previous swing levels,
we can see that price looks to make a head&shoulders pattern
On the Daily we see a possible double bottom
being formed and on the second half we can
see that price starts to stall and stops making
lower lows and starts ranging. Price is at about
the 50% level of the huge pinbar which is also
a nice level for price to push higher
I'll be watching this pair for nice long setups for the coming weeks
The Trend Is Your FriendWeekly Review
- Markets keep going up
- Keep correcting the downside from 2018 that did not make sense
- Markets are bullish but the volume is lower so the vulnerability is bigger
- Negotiations between China and USA
- Some memorandums will be confirmed and they will keep extending the deadlines that probably will take until summer
- We should receive some good materially this week
- European macro keeps weakening
- Manufacturing data are below 50 for the first time since 2013
- This week there is not much macro
- ECB should speak and explain their position in regard of this economic slowdown
- When ECB tells what they are going to finance will be positive for the markets
- Keep an eye on both the trade talks between China & USA and the ECB
- Also, there is a meeting between USA and North Korea that will be more constructive than destructive
- Strong American macro-data can indicate that the economy can keep increasing
- American GDP is expected to be 2.5 which should be good
The most important factors to take:
- A constructive talk between USA and North Korea
- Progression in the talks between USA and China
- ECB starts talking about the stimulus package
If there is not any displeasure markets should keep the bullish trend, however, watch out for the volumes as they are lower.
Nasdaq To New HighsWe had another good week and the S&P500 is now 10,7% up YTD. Regarding the week ahead, it does not have a bad outlook.
- In the worst scenario it will be a period of consolidation
- Trade talks between US & China and Brexit remain a concern for traders
Both have deadlines in March and outcomes are expected to be positive which will boost the equity markets
- 3 main variables to bear in mind:
Trade talks between US and China - Expected to keep progressing
Brexit - Will be extended to reach a better negotiation and the markets are getting used to it
US Government Shutdown - Forecasted to disappear soon
Unless something bad occurs to these variables market should keep the bullish trend.
GBPUSD - Bullish Minor C - February Wave Counts - Part 6GBPUSD labeled in a bullish impulse within Intermediate (C) (green), with Minor 1 & 2 (green) finalized.
Pound Sterling Dollar should go bullish from here, with an aggressive rally expected in Minor 3 (green).
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Many pips ahead!
EURUSD - Bullish Minor C - February Wave Counts - Part 5EURUSD labeled in a bullish impulse in Minor C (blue), with Minute I (green) and Minute II (green) complete.
Euro Dollar should go bullish from here, with a violent move on the up-side as the next interpretation.
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Many pips ahead!
We are now bullish on Abercrombie Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer. The Company operates in two segments, Hollister and Abercrombie. It offers apparel, intimates, personal care products, and accessories for men, women, and kids under the Hollister, Abercrombie & Fitch, abercrombie kids, and Gilly Hicks brand names. As of August 30, 2018, it operated approximately 850 stores in North America, Europe, Asia, and the Middle East. The company sells products through its stores and direct-to-consumer operations; various third-party wholesale, franchise, and licensing arrangements; and e-commerce sites, including abercrombie.com and hollisterco.com. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.
Abercrombie & Fitch Co trade above its Short-Term Down Trend Line at $21.40 and is currently trading at $21.61.
We are now bullish on this stock and will now execute a long term position trading strategy.
We will execute our first block of trade at $21.67 for our Global Proprietary Equity Fund with an allowance of four(4) times the Daily Average True Range ( 4 x 0.6720=$2.688) below our entry point at $21.67 . This will give us an Exit Price of $18.98 if our bullish analysis is wrong.
This is a long term trade with four(4) price targets, four(4) entries and four(4) percentage(%) Risk. The entries will depends on price action at the support zones.
Price Target 1: $25.00
Price Target 2: $28.66
Price Target 3: $31.25
Price Target 4: $37.50
Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy or completeness. The information and content are subject to change without notice.
US Treasuries vs US Equities - Risk OnAfter peaking in late December 2018, the price ratio between 7-10 year US Treasuries (IEF as proxy)(numerator) and US Stocks (SPY as Proxy)(denominator) has fallen since then. This is backed up by the fact that the US Treasuries/US Stock ratio fell below its 10 day EMA (Green) and failed to move higher. We believe that this indicates that “Risk-On” sentiment is back in the financial markets, in the interim, as investors flock out of safe havens and into risky assets such as equities. It must be noted however that the overall macroeconomic backdrop is still quite challenging, as geopolitical risk in various regions continues, and global economic indicators trend downward.
Nonetheless, we believe there are some short-term opportunities in equities on a sectoral basis: Air Services, Recreational Vehicles, Southeast Regional &Pacific-focused banks, and Auto Part manufacturers & Wholesalers present opportunities for investors in the near term.
PIN BAR + FIBB RETRACEMENT + ENTRY SIGNAL1. Hourly Pin Bar
2. Lower close of previous low hourly.
3.Increasing volume for downward pressure.
4. Price could not close above structure and 0.786 fib level
5. Moderate RR based on 1st TP.
*Would wait for 4 hour close of lower low to put in another sell order.
NASDAQ | 15% Countercyclical Trade? Rebound Before Crash?Looks like the market is poised for a rebound after shedding over 20% since October.
Above 6100 we look bullish for a rebound consolidation period. Below 5992 this idea become invalidated as dip buyers will get taken out the back and shot.
Watch for the market to reverse around the 7000 level as market participants make decisions to unwind their long positions and/or open large short positions to solidify a downtrend on the bigger timeframes.
***This is not investment advice and is simply an educational analysis of the market and/or pair. By reading this post you acknowledge that you will use the information here at YOUR OWN RISK
S&P500 very volatile but possible bear for next 2 yearsOkay so this analysis is based on a very famous M pattern that only works for long term technical analysis. We see the market start this similar pattern almost every time a couple of years before a recession. and yes I know everyone is saying we are going to have a recession next year. I don't believe it And still hold by what I say recession will be anywhere between 2023-2026
$TVIX to hit $99.38, with trials to break $100.27In next 60 days, as $DJI continues to dramatically falls, among other market indices (e.g. oil most likely to hit below $40), thereby high-market caps (e.g., $MSFT, $AAPL, $AMZN) to settle down to new lower valuations, most likely all to hit below $600B, or even lower as it all used to hold on <$500B, thereupon $TVIX becomes a safe bet to break up its old adjusted supports and it is possible to reach to its $115 support.
Please feel free to comment, Happy Holidays, and trade safe!
SPY500 - charts confirming bull run is over?You can see where the support (blue trend line) broke down while a new down trending line of support (red line) was created.
Previous support line now acts as resistance. Failure to break back above the 2009 trend confirms the longest bull market in history has come to a close. Enter the bears.
I also see the left shoulder and head of a possible H&S formation. Perhaps we'll get news of a trade deal between the US and China, providing the catalyst needed to send prices higher, completing the right shoulder before said agreement falls apart or fails to materialize, sending prices down to 2470 and more likely, 2080 (.618)
Or any other number of possible catalyst.
A H&S pattern is not required to send price lower. We could just as easily bounce along the new RED support line down to 2470.
DJIA - Looking Shaky at the 2.618 Hate to be the bearer of bad news, but the us stock market is more likely to undergo a serious correction, as apposed to an extended 2019-2020 continuation rally. Aside from the fundamentals, macroeconomic and geopolitical factors, which are also pointing to a global "risk off" environment, the TA alone shows that the 75 degree angle of this bull market is not sustainable. I am expecting a 20-30% correction to come within the next 2-3 years.
Time to start thinking defensive, and protecting that capital.