AMZN - Falling Trend [MIDTERM]- AMZN shows weak development in a falling trend channel in the medium long term.
- This signals increasing pessimism among investors and indicates further decline for AMZN.
- However, the price has broken a resistance level in the short term and given a positive signal for the short-term trading range.
- AMZN is approaching's resistance at 100 , which may give a negative reaction.
- However, a break upwards through 103 will be a positive signal.
- Overall assessed as technically negative for the medium long term.
*EP: Enter Price, SL: Support, TP: Take Profit, CL: Cut Loss, TF: Time Frame, RST: Resistance, LT TP: Long Term Target Price
Verify it first and believe later.
WavePoint ❤️
Midterm
NDX - Breakout Falling Trend [MIDTERM]- NDX has broken the ceiling of the falling trend in the medium long term, which indicates a slower initial falling rate.
- NDX has given a positive signal from the double bottom formation by a break up through the resistance at 12000.
- Further rise to 13400 or more is signaled.
- NDX has support at 12000 and resistance at 13000.
- Overall assessed as technically slightly positive for the medium long term.
Verify it first and believe later.
WavePoint ❤️
AAPL - Falling Trend [MIDTERM]- AAPL shows weak development in a falling trend channel in the medium long term.
- A decisive break of the resistance at 157, ideally with an increase in volume, signals a further rise.
- AAPL has broken up through resistance at dollar 151.
- Positive volume balance indicates that buyers are aggressive while sellers are passive, and strengthens the stock.
- AAPL is overall assessed as technically positive for the medium long term.
SOXL - Failing Trend [MIDTERM]SOXL has broken through the ceiling of a falling trend channel in the medium long term. This indicates a slower falling rate initially, or the start of a more horizontal development. SOXL has received a positive signal from the moving average indicator, thus signaling a continued rise. The stock is approaching support at 14, which may give a positive reaction. However, a break downwards through 14 will be a negative signal. SOXL is overall assessed as technically neutral for the medium long term.
ON - Rising Trend [MIDTERM]- ON is in a rising trend channel in the medium long term.
- This signals increasing optimism among investors and indicates continued rise.
- ON is testing support at 75.
- This could give a positive reaction, but a downward breakthrough of 75 means a negative signal.
- The stock is assessed as technically positive for the medium long term.
AMD - Double Bottom Formation [MIDTERM]AMD has broken through the ceiling of a falling trend channel in the medium long term. This indicates a slower falling rate initially, or the start of a more horizontal development. It also gave positive signal from the double bottom formation at the break up through the resistance at 78. Further rise to 94 or more is signaled. AMD has broken a resistance level in the short term and given a positive signal for the short-term trading range. AMD has broken up through resistance at 84. This predicts a further rise. In case of negative reactions, there will now be support at 84. AMD is overall assessed as technically positive for the medium long term.
Entering long in equity derivatives - mid/short-term. Some of our algorithmic systems are entering long in global equities, mainly in Norway and in the US.
Right now, the mid-term bullish trend is not completely consolidated, so the VaR allocated to each position is extremely slow.
Our systems are entering at market prices with guaranteed trailing stops at 0.3% of our portfolio risk.
If the systems compounds in a near future, they could open new positions at 0.5% of our portfolio risk.
Nevertheless, they will never allocate too much into a long equities strategy, due to they are diversified between leveraged ETFs, A-book CFDs, spot FX, and exchange-traded derivatives.
Zen Technology Stock trading in a channel bound zone which is 190-205₹ but creating
its strong base at this zone and I am very
bullish at this stock. I can say confidently This stock will be the money maker in the future( According today's trend and analysis)
There are 2 Big factor at this type of company
1- Union #Budget2023 is fully focused for drone
technology in #Defence and #Agriculture sector.
2- Company showing nice results continuously
and company is fundamental strong also.
Its not any recommendation its my personal views and studies
Microsoft (MidTerm), ascending or descending?The stock price could be bearish in short. But bullish in long. And the top support line of the Microsoft stocks (at 281 USD) seems to be the minimum reasonable trading point for mid-term holding strategy, unfortunately... And the second support line is even further below at 243 USD... Yet, its not a good time to buy some stocks but, soon, at a price of between 243 to 281 USD midterm holding strategy would be profitable...
Mid-Term Buy & HnS PatternEvery single one of y’all should never ever miss this pattern.. otherwise Re-Train lol.
This is way more visible to see from 1-3HR chart you see a form of head n shoulders.
Where USDCAD now flat surface should be a buy midterm buy; pretty short-ish.. the sell to complete the downside should further dips up over 1.35 area to see and down even further.
We might see short or unexpected reversal.. becareful it’s very spikey.
Market Impacts: from Midterms to Second HalfCME: Micro E-Mini Nasdaq 100 ( CME_MINI:MNQ1! )
On August 17th, I published “Market Impacts of US Midterms Elections”. Thanks to your support, it made it to “Editors’ Picks” and was featured in TV Digest newsletter in an email themed “Midterms are Coming” to all subscribers.
With the midterm elections coming to an end, it’s a good time to reassess the situation, exploring potential changes in economic policies which may give rise to trading opportunities.
In the August 17th story, we have discussed 3 potential outcomes of the midterm election:
• Party Government: The President, the House and the Senate are controlled by the same political party
• Divided Government: Only one chamber of Congress aligns with the President
• Opposing Government: The President and the Congress are from different political parties
Before the elections, the Democratic Party controls the White House and both chambers of the Congress. It was clearly a “Party Government” under our definition.
As of this writing, Democrats clinched 50 seats in the Senate. With the tiebreaking vote from Vice President Harris, Democrats retain Senate majority. Meanwhile, Republicans lead 212:204 in the House race but has not reached the magic 218 required to flip controls.
GOP represent half of the voters in this election. They hold on to at least 49 seats in the Senate, gain more seats in the House, and are likely to retake control. They also have governorship in half of the 50 States.
So, why the Midterms are being perceived as a landslide victory for Democrats?
It’s all about expectations. Historically, midterms are bad for the ruling party. Whichever party in the White House usually loses seats in the Congress. In the 2018 midterms, Nancy Pelosi led the Democrats to recapture the House of Representatives. With Biden’s approval rate hovering at 40% low, and inflation rate flying high, GOP was widely expected to have a stunning victory at both chambers of the Congress.
To the Democrats, the absence of “Red Waves” is a vindication of their political agenda. While a “Divided Government” is still possible pending final results, Biden and Senate Majority Leader Chuck Schumer already claimed election victory.
Conclusion: the emboldened Democrats will go full speed with “Build Back Better” in the second half of President Biden’s presidency.
Bigger Spending
In the last two years, the Biden Administration passed legislations with budget over $4 trillion. These include:
• American Rescue Act in March 2021, $1.9 trillion
• Infrastructure Investment and Jobs Act in November 2021, $1.2 trillion
• U.S. Chip and Science Act in August 2022, $280 billion
• Inflation Reduction Act in August 2022, $757 billion
Also in August 2022, the Administration announced a Student Loan Forgiveness Plan that is expected to cost $400 billion. The plan is currently on hold by court orders.
In the First Half, new budget items averaged $2 trillion a year. I expect more big budget items to come in the Second Half. If Republicans are not there to slow down the legislative ambitions, it’s hard to tell how big the spendings will be.
Bigger Deficit and Bigger Debt
According to USDebtClock.org, the 2022 Federal Tax Revenue is estimated at $4.92 trillion, and the Federal Spending Budget will be $5.98 trillion. The shortfall is Federal Budget Deficit, at $1.06 trillion.
The largest federal budget items are:
• Medicare/Medicaid, $1.490 trillion, (24.9%)
• Social Security, $1.231 trillion, (20.6%)
• Defense/War, $770 billion, (12.9%)
• Interest on Debt, $481 billion, (8.0%)
I notice that debt interest has risen by $39 billion from previous estimate, and its share in the federal budget grows from 7.4% to 8.0%, thanks to the Fed rate hikes.
US National Debt is estimated at $31.3 trillion. Budget deficit needs to be financed by debt. Therefore, national debt would rise to $32.5 trillion next year at a minimum.
While many bonds were issued before 2022 and carried low yields, new Treasury bonds must pay current market rates. Considering Fed Funds already at 4%, I put 3% down as my estimate for weighted-average federal debt service rate in 2023. This would price the annual debt interest at $975 billion, which is 103% higher than this year, and $205 billion more than the Defense budget!
With Democrats in control, I expect Medicare, Medicaid, and Social Security to get favorable budget allocation next year. Heightened geopolitical tensions in multiple fronts justify a bigger Defense budget. Assuming all of them goes up by 5% and there is no change in other budget items, my baseline forecast for 2023 federal budget is $6.65 trillion, an 11% annual increase.
Assuming tax revenue goes up by 10%, we will have a budget deficit of 1.23 trillion, a 24% jump from 2022. Big spending legislations could add $1 trillion more on top of this.
Sticky High Inflation
The US economy is caught between restrictive monetary policies and expansive fiscal policies. When trillions of dollars are flooding the economy and the financial system, prices of goods and services tend to go up. Raising interest rates alone is not sufficient to bring the price level down.
This is why inflation is still uncomfortably high after six consecutive rate hikes. Cathy Wood recently flowed an idea claiming inflation could turn negative next year, citing similarity from the Roaming Twenties. I peg to differ.
The Federal Government is pumping $6-7 trillion in a $26 trillion economy. Every year, federal agencies and contractors get bigger budget, government employment grows, and federal employees get higher wages. Regardless of the business cycle, one quarter of the US economy is expanding. Industries benefiting from government spending will strive, even if the country may slip into a recession.
Higher Taxes
Big spending comes with bigger taxes. Government needs more tax revenue to pay for its ambitious agenda.
• Higher tax rate on people earning $400,000 or more. New taxes on investment carry interest, translating into headwinds for hedge fund, private equity, and venture capital.
• The 15% minimum corporate tax will affect multinational corporations which frequently use offshore tax haven.
Potential Winner
Unlike political elections, it is tricky to find a clear winner in the financial market.
Comparing the performance of major US stock market indexes, the Dow has a year-to-date return of -7.18% as of November 11th, while S&P 500 and Russell 2000 yield -15% and -14.14%, respectively. Nasdaq 100 falls 25.10% and is the worst performer.
Big Tech is laden with bad news these days, with missed earnings and widespread layoffs among them. As stock prices are beaten down, valuations become more reasonable. In my opinion, advanced technologies that align with government priorities would benefit in the next two years. Clean energy, artificial intelligence, biotechnology, space technology and electric vehicles are on the receiving end of major government funding. While I was bearish with the Nasdaq at 13,500, I think it could find price support at 10,500.
However, impacts from the Midterms interact with business fundamentals, the ever-changing investor sentiments, and major global events. The next Fed meeting is only two weeks away. Let’s wait for the next rate decision, as it is the overarching factor that guides market direction right now.
We can put CME Micro E-Mini Nasdaq 100 Futures ( CME_MINI:MNQ1! ) on the watch list today. MNQ has a notional value of $2 times the index. At 11,792, each contract is valued at $23,584. Opening a Long or Short position requires initial margin of $1,500.
While the S&P 500 is trending down, certain sectors may outperform the broad market. CME recently launched E-mini S&P Biotechnology Select Industry Futures ( CME:SXT1! ) and E-mini PHLX Semiconductor Sector Futures ( CME:SOX1! ). They each offer more precise trading opportunities tailored to industries benefiting from increased government funding.
Happy Trading.
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
CME Real-time Market Data help identify trade set-ups and express my market views. If you have futures in your trading portfolio, check out on CME Group data plans in TradingView that suit your trading needs www.tradingview.com
PUMP it then DUMP it for gold ?!With USD strength with a strong bearish trend currently intact, we have saw gold tried twice to break major resistance but it couldn't so I think a temporary retest of 1622 allowed bulls to push prices up and break Major resistance at 1685 before running into resistance at 1720 - 1730 then they will dump it to 1560-1580
Also don't forget Gold competes against the bond markets as a safe haven... a potential rate hike of 75 to 100 basis points by the might make the bond market a little more attractive to safe-haven buyers than the gold market would normally be
#BTCUSDT SHORT🔹Bitcoin is forming a very complex correction here so you can label this part of the chart in so many ways but still don't get it all right.
🔸Nevertheless, we expect Bitcoin to form Wave C of this flat pattern in the next couple of weeks (We will finish it by the end of November) and start a very strong downtrend toward the old below. Target zone for this wave is between 17200 - 15000. As we move forward, we can update the targets more clearly