Important week for EURUSDLast week ECB announced the Interest rate, now is FED's turn.
A new increase up to 5% is expected and this is the most important news at the moment.
Often before such news the direction is unclear and we see misleading movements.
In such a case, it is advisable to wait for confirmation and passage of the news before entering into trades.
The more likely direction remains for strong USD and we will be looking for grounds and entry opportunities.
Pivot
The FED HAS already pivoted! Who cares what the FED does next?Apologies for the click-baity title, but I did want to get your attention to make (once again) my point that inflation is ON now and that the FED has actually pivoted while many are watching and don't see it that way. Let me explain.
Back when the FED started raising rates rapidly I grew worried that at this unprecedented pace of rate hikes, something would break. I stated this all along through each of my post. Foolish people and businesses simply do not have the acumen to hedge against the rapidity of dried-up liquidity in the markets. I did not know the banks would become the first culprit exposed in their foolish investment endeavors. But here we are.
Banks are failing because of their own stupidity and guess who gets to pay for it once again? That's right, you and I do through the continued devaluation of our U.S. dollar.
"But the dollar's getting stronger", you emphatically retort.
Yes. It was. As the FED moved to increase rates in a reactionary manner, as they always are, the dollar did gain strength and is currently fairly strong, relatively speaking. However, things will soon change and many do not even know it as they are focused on the wrong indicator, FED rate hike action and future interest rates. While this is certainly still important, it does not tell the whole story.
As you know, I have been calling for a pause or pivot from the FED soon. That pivot has already come. "How so?", you asked. The FED has not articulated strong indicative language regarding a pause or pivot. That's true. But while the banks were failing, the FED did begin to guarantee depositors their money due to 'systemic risks'. I've heard this before (think 2008 and the BIG 3).
In guaranteeing depositors their funds, the FED mushroomed its balance sheet by roughly $300 billion dollars last week alone! And this may just be the beginning! Incredible.
This is the pivot that I was looking for from the FED. So, while everyone else continues to focus on what the FED will do next in terms of interest rates, savvy investors have already spotted the change and recognize that it's now inflation ON!
This subtle (or not so subtle, pending perspective) change in direction correlates with three important thesis points that I have been making all along:
That something will break
That the FED will pause/pivot
That we will see a blowoff top in the US stock market
It also aligns with current technicals.
As you can observe from the chart above, price action has retested our macro-downtrend line precisely as anticipated, has bounced from there as anticipated, and is currently trending up as anticipated.
I do believe this is the beginning of our blowoff top with a price target of US500 to be at or around $5,500 to $6k by early to late fall. Maybe early winter. Timing is difficult.
Best to you all,
Stew
EURNZDEURNZD has been examined in different dimensions:
1- Strong supply and demand levels that I identify with my own indicator and system.
2- The structure of recently formed waves
3- Current market momentum
4- The structure of classical and price patterns
In this idea, I identified the direction of the market in different ways and in the second step, I analyzed the potential of continuation or reversal. Usually, paying attention to the trend and strength of the trend can greatly increase the accuracy of the analysis.
In general, I tried to describe the continuation of the movement in the simplest possible way in the diagram.
⚠️ Disclaimer:
This is a personal opinion and you are responsible for any trading decisions.
Targets AboveThe FED showed its hand and backstopping the banks.
Market is pricing in 25bp and pause for this months FOMC
Here are my targets above on spy:
Mar9 GAP 391.56
200D MA: 393.24
SINCE QE POC: 395.29
20D MA: 401.43
back to 25bp: 407.45
FEB16 GAP: 408.14
FEB2 HIGH: 418.31
AUG 19 TWBB GAP: 422.14
AUG18 TWBB GAP: 426.86
OPUSDT Testing important supportSUPPORT: $1.60
RESISTANCE: $3.20
Targets on chart for both scenarios.
As the sun set over the sprawling city, a gentleman sat quietly in his study, watching the ticker tape on his desk. The name on the tape read "OPUSDT", a curious name for a most curious asset. The gentleman had been keeping an eye on this asset for some time now, and despite his initial reservations, he had grown quite fond of it.
However, his fondness was now being tested. OPUSDT was approaching a critical level, a level that would determine its future trajectory. If it held this level, the gentleman believed that OPUSDT would soar to the lofty heights of $6.00 (six dollars).
The gentleman knew that he was taking a risk by investing in such an asset. But he was a man of conviction, and he trusted his instincts. He knew that if he played his cards right, he could come out on top.
And so he sat in his study, watching the ticker tape with bated breath. As the price of OPUSDT approached the critical level, his heart raced with anticipation. He knew that this was a pivotal moment, one that would determine the fate of his investment.
Finally, the moment arrived. The price of OPUSDT hovered at the critical level, teetering on the edge. The gentleman held his breath, watching intently as the price fluctuated.
Investing is a game of patience and wisdom. One could not simply throw their money into the market and hope for the best, for that would be the way of a fool. No, one has to wait for the price action to pivot and climb before investing, for that is the mark of a wise and cunning investor. Such an investor carefully watches the movements of the market, studying its ebbs and flows, waiting for the opportune moment to strike. For they know that to invest too early or too late was a sure path to ruin. And so they wait, biding their time with the utmost patience and restraint, until the moment was just right. Then, and only then, they make their move, with confidence and resolve, knowing that they had chosen wisely.
EURUSD heading towards 1,0585Today will be announced FOMC minutes. This news may lead to bigger fluctuations.
Yesterday EURUSD failed to reach the sell zone and pulled back from lower values.
We expect bearish move to continue towards 1,0585, and in case of breakout to reach 1,0515.
Enormous fluctuations are possible during the news , that’s why lower your risk.
ppd contraction, ml strat consolidative, musashi crossthese strategies are signaling the consolidative move isnt over, and revisiting mean and regression is likely
theres no way to prove at the moment we will go through a phase like this, but if the opportunity presents itself its a path that mathematically makes sense
SPX: This Could Change Everything. 👀• The SPX successfully rejected the Below the Stomach candlestick pattern from yesterday, and it failed in breaking the support at 4,015;
• This is a sign of strength, and makes a correction to the 21 ema less likely;
• The trend is still bullish, as it is still doing higher highs/lows, above the 21 ema (D), and there’s no clear reversal sign on it yet;
• Although the SPX rejected the Below the Stomach from yesterday, it has yet to break the resistance at 4,100;
• The 4,100 is a bullish pivot point, as seen in the weekly chart, and would be the first one since the bear market started in January 2022 - this could change everything and put an end on this bear market. The index already did an upwards breakout from the Descending Channel seen in the W chart;
• For now, the key points are 4,100 and 4,015. I’ll keep you updated on this.
Remember to follow me to keep in touch with my daily analyses!
Buy TSLA in DecemberI think Tesla will be a good buy for December!
NASDAQ:TSLA has reached the lows of March 2021 ($179). The Hazel Heritage Indicator gave me my favorite signal, which is the "untested low", pointing out when price has crossed through a pivot low that has never been tested before.
This signal has a 92% success rate of creating a new pivot low. Price also has came back down to test the all-time high of $167.
Therefore I'm bullish on Tesla going into the month of December!
Buying opportunities on EURUSD There have been no good opportunities over the last two days, but every drop has been fallowed by a sharp rise.
It’s more likely that we will see a continuation of the upward movement towards 1.0990.
There’s a lot of news today and we expect big fluctuations .
Upon heading towards 1,0865 we will watch for a pullback and buying opportunity.
GBPAUD I It will rise to resistance +200 Pips Welcome back! Let me know your thoughts in the comments!
**GBPAUD Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
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EURCHF I Short from supply zone Welcome back! Let me know your thoughts in the comments!
**EURCHF Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
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SHOP - Ready to trend soon?SHOP had been building a rounding base for the past 9 months with 2 (failed) attempts to break it's neckline @ 45.30. The stock finally had a Golden Cross a few days ago on 18 Jan, further solidifying that it is bottoming out.
Even after golden cross has occurred, some stocks can continue to remain volatile within a range for another 2 or even 3 months. Hence a better time to enter long is to wait for a break above a significant neckline (in this case 45.30).
The aggressive trader would enter as the stock starts to break above the neckline (entry 1) although there is a chance this could be yet another false break (but with diminishing odds as the moving averages are now aligning to the upside).
A more conservative trader could wait for further upside momentum by waiting for the 1st pullback above the neckline, and then enter only when the stock starts to break above the last pivot high (entry 2).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Buys on GBPUSDThe rising on GBPUSD continues and gives another chance to enter into a trade.
Yesterday the price made a new top and reached 1,2289.
However, we still expect that there will be strength to move above 1,2300.
This gives another buy opportunities after the end of the correction. We’re watching for an end of the movement and good time to enter a trade.
You should not enter a buy trade if the price crosses 1,2087.
#BTCUSDT - Short YOLO Opportunity#BTCUSDT - Short YOLO Opportunity
Lots of Bearish indicators going on here now. Can go for a bit of a yolo BTC short here. Might pay off really well. Although we are seeing some random BTC pumps coming in although it is looking like people are starting to realise some profit now.
Entry Conditions:
- Bearish Divergence
- 200EM Daily Rejection
- Ascending Wedge Breakdown
- Bearish CME Gap
- Bearish Weekly Pivot
DIS - Is the bottom in?It is hard to tell what is really going to happen to disney. The valuation on a fwd PE looks to be reasonably valued as well as a low price to sales ratio. The question really is, are they going to pay down their debt over the upcoming years and will they have the free cash flow to support paying down that debt.
From a purely technical standpoint, it is at the 61.8 retracement level from the 08 lows to the 2021 highs. With price going all the way back to 2014 and at two levels of big support, I think there is good risk/reward for the short term and potentially the long term if this is it's low. I think the big driver moving forward that has to become the dominant player in the space is it's streaming business.
A close below 87 and you can see volume drop off pretty heavily so this baby can fall fast. I will most likely look to short and pick up shares at $65 if that were to happen.
This is not financial advice! Good Luck!
The Misconceptions of a FED Pivot...Investors often want the Federal Reserve (also known as "The Fed") to pivot its monetary policy because it can potentially have a significant impact on financial markets. A pivot refers to a change in the direction of monetary policy, such as shifting from tightening (e.g., raising interest rates) to easing (e.g., lowering interest rates).
When The Fed pivots towards easing, it can signal to investors that it is willing to support economic growth and potentially stimulate asset prices. This can lead to increased demand for stocks and other riskier assets, as investors expect that these assets will benefit from the supportive monetary policy.
However, it's important to note that The Fed's pivot does not always have the intended effect on financial markets.
For example;
1. In 1986 , the Federal Reserve implemented a form of quantitative easing (QE) known as the Treasury-Fed Accord. This policy involved the Fed purchasing large amounts of U.S. Treasury securities in order to lower long-term interest rates and stimulate economic growth.
2. In 1989 , the Fed implemented another round of QE in response to a slowdown in economic growth. This time, the Fed focused on purchasing mortgage-backed securities in order to lower mortgage rates and support the housing market.
3. In 2000 , the Fed implemented QE in response to the dot-com bubble burst and the subsequent economic downturn. This policy involved the purchase of longer-term Treasury securities in order to lower longer-term interest rates and stimulate economic growth.
4. In 2007 , the Fed implemented QE in response to the global financial crisis. This policy involved the purchase of a variety of securities, including mortgage-backed securities and longer-term Treasury securities, in order to lower longer-term interest rates and stimulate economic growth.
5. In 2020 , The Fed pivoted towards a more accommodative stance in its monetary policy in response to the economic disruption caused by the COVID-19 pandemic.
In conclusion, investors may want The Fed to pivot towards easing in the hope that it will stimulate economic growth and support asset prices. However, it's important to recognize that The Fed's actions do not always have the desired effect on financial markets, and there are many other factors that can influence stock prices.
BUT .. As an investor, there are a few things you can do while waiting for the Federal Reserve (The Fed) to pivot its monetary policy:
- Stay informed: Keep track of economic and market developments, as well as statements and actions by The Fed. This can help you understand the current economic environment and how The Fed might be considering changing its monetary policy.
- Diversify your portfolio: Consider spreading your investments across a range of asset classes and sectors, as this can help reduce risk and potentially provide more stable returns over time.
- Have a long-term investment horizon: The Fed's pivot may have an immediate impact on financial markets, but it's important to remember that the long-term prospects of investment are generally more important than short-term movements. By having a long-term investment horizon, you can potentially ride out any short-term market volatility caused by a pivot in The Fed's monetary policy.
- Review your risk tolerance: Make sure that your investment portfolio is aligned with your risk tolerance and financial goals. If you are a risk-averse investor, you may want to allocate a larger portion of your portfolio to safer investments such as cash or bonds.
- Seek professional advice: If you are unsure about how to navigate the investment landscape, consider seeking the advice of a financial advisor or professional. They can provide personalized guidance based on your specific investment goals and risk tolerance.