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Russell2000

Global Quad 2I want to apologize for my lack of activity the past few months. A lot has changed in the markets and a lot has evolved in my approach to reading and navigating the markets. When it comes to my process, I have added the use of multiple lenses beginning first with a fundamental macro overlay called the GIP (Growth, Inflation, Policy) Quad Model, which give us 4 possible macroeconomic environments on a rate of change basis that we are in and could be headed towards. This model protected investors in advance of the 2020 crash with big positions in cash, bonds, and puts and it had its users in Gold and TLT from 3Q2018 until 3Q20. This model also has its users begin shorting USDs and buying commodities and Emerging markets beginning in May 2020. It is impossible to be perfect in markets and the model has made mistakes but overall it has convinced me it is a model worth using and paying attention to. Currently the GIP Model is showing the global economy already in Quad 2 and headed towards a Deep Quad 2 topping out by the 2nd quarter of 2021. Quad 2 is the macroeconomic environment where both economic growth and inflation are accelerating simultaneously. What many equity bears, bond bulls, and gold bulls are missing is that in 1Q20 the global economy hit rock bottom and there is only one direction out of an absolute rock bottom. Whether that's going sideways, a slow grind higher, or a better than expected recovery, all of those outcomes give us something that is better than what the economy was in the March of 2020. It is all about the Rate of Change, this is what the market cares about. Yes, we are in a recession, but the direction the economy is headed right now is different than the direction it was headed in at the start of 2020. On the Margin, a Biden-Kamala administration means: - Less trade war with both allies and foes. A move away from nationalism and isolationism. - Continued push for more stimulus - Giving the Federal Reserve the power to spend not just lend. Retail Central Bank accounts with digital currency stimulus checks etc.. - Possible stimulus directly from the executive branch - Republicans forget that Biden and Kamala are corporatists first and foremost and not nearly as far left as Fox news says. So, this means $DXY continues its downtrend, potentially hitting 80, 70, and maybe a new all-time low over the next 4 years. In the short-term, DXY's trend range is 91-88. Many Gold Bulls are confused why Gold and Silver haven't rallied to new highs despite DXY dropping to new lows, and the reason is because yields have risen alongside expectations for slightly better growth in 2021, higher growth expectations means investors will want to take on more risk in stocks and commodities over yield-sensitive safe havens like bonds and precious metals. AT THE SAME TIME, I still think silver miners and junior miners can do alright in Quad 2 even as the metals themselves stagnate because the amount of money the miners are making is pretty ridiculous. The miners that are well-positioned to expand production into an elevated gold price environment will have accelerating earnings which makes their stock attractive. An example of such a stock is $AUMN Golden Minerals. You really can't go wrong with anything in the commodities. Since the election energy, materials, and industrials have been great places to be. I think energy will continue to be a strong winner. That includes USOIL, Natural Gas, and Uranium. I think the agriculture complex can surprise to upside, including oranges, cocoa, coffee, and cattle. And the Covid losers, in general, will continue to outperform the Covid winners if yields continue to rise (study the US10Y) which is spurred by increases in expectations for future growth and inflation. This is why Copper has been smoking gold lately. Another way to play the steepening yield curve, is $IVOL, which is a low volatility and asymmetric way to play interest rates if you think bonds are overpriced. So to summarize: Bearish on bonds until Q2 of 2020, Bullish on global equities, Bearish on the US Dollar, Bearish on VIX, and on the margin bearish gold and neutral on silver, but bullish on some of the well-positioned gold and silver equities. Once this Quad 2 growth peaks in Q2, or maybe the model output pulls the probability forward of growth peaking in late Q1, whenever that point ends up being we will pivot towards being long gold and silver and shorting Chinese stocks, Oil, Russell 2000, Nasdaq, Financials, etc. but that will be later in 2021 with a Quad 3 or 4 environments (Quad 3 rising inflation falling growth, Quad 4 Falling inflation falling growth). Basically the bullish case is this: - Economy hit rock-bottom in March - Fed overshot monetary policy by a mile - Fiscal stimulus was like 10x the 2009 Fiscal stimulus - A lot more stim is on the way with Biden-Kamala - Biden-Kamala also means more global trade, less volatility in foreign policy - Travel restrictions become loosened as vaccine distributions take place - Highly unlikely that most of the USA and most of the world ever sees anymore covid shutdowns
TVC:US10YLong
by Ludwig_Von_Mises
US-MARKETS : CORECTION NEARNG COMPLETIONDuring CORRECTIONS it is inciteful to create a CHART, where YOU can watch ALL the INDICES at once. This is my PERSONAL trading CHART, with no further educational explanations. IF you get it, YOU GET IT, if you don't, YOU DON'T. I really don't care. We use ELLIOTT WAVE theory to determine WHAT we are looking for, (i.e. TOP or BOTTOM). THEN technical MULTI-TIME-FRAME Indicator analysis To fine-tune to what extent price will and when. Enter and exit TRADES in steps ... NEVER go all-in or all-out at ONCE.
OANDA:US2000USDLong
by wolffarchitecture
3
US-MARKET CORRECTION NEARLY COMPLETEDuring CORRECTIONS I find it useful to create a CHART, where YOU can watch ALL the INDICES at once. This is my PERSONAL trading CHART, with no further educational explanations. IF you get it, YOU GET IT, if you don't, YOU DON'T. I really don't care. We use ELLIOTT WAVE theory to determine WHAT we are looking for, (i.e. TOP or BOTTOM). THEN technical MULTI-TIME-FRAME Indicator analysis To fine-tune the expected move in terms of PRICE and TIMING. Enter and exit TRADES in steps ... NEVER go all-in or all-out at ONCE.
OANDA:US2000USDLong
by wolffarchitecture
3
What might happen to the market in coming weeks/monthsThis is my favorite analysis I give my qualified bid here on how NASDAQ and the market are going to evolve. the graph is very similar to the financial crisis and makes exactly the same pattern, on top, bottom, RSI and MACD. 10-y bond have fallen and as I wrote in my other analysis, bonds will return to 0.95 and up again to 1.5. it's making a cup and handle now. Follow the dates on the 1,2,3,4,5 wave and compare it with 10-y bond, and financial crisis(15. march 2011 to 17. june 2011).
TVC:IXIC
by Fatihy00
5
ES - S&P and Russel futures experiencing pressure by 10 year YDespite the really bearish technicals on both S&P and Russel 2000 as well as many considering those indexes highly overvalued — there more than 1T sitting in Treasury being ready to go into the financial economy. We can assume that support lines will hold the bearish pressure to some extent. As well we can assume that the 2020 asset crisis will not repeat due to the full support of central banks on markets to function with the least volatility possible. Patterns can evolve into next week, but be aware not to overhold short positions.
CME_MINI:ES1!Short
by xdire