Russia
Strong Reversal SPY/SPX IHFundamentals: Slowing growth from Google and Microsoft continued our confirmation of a slowing macro environment. Microsoft reporting slowing growth in cloud revenue. Google even said their strongest ad flow of "search" saw a decline in revenue. Ad spend being the canary in the coal mine indicates the market is ready to continue it's collapse. META continues to blow through cash to build the metaverse.
-3 month/10 year yields inverted
-Yields/Dollar continue their climb - taking a break the last couple of days.
-BOJ intervention
-Canadian central bank increasing just .5
-Chinese Xi reigns again and this time with complete dominance - Speaks of a great challenge ahead - Taiwan in the crosshairs
-Russians talking nuclear attacks
Technical Analysis: The low from Sept 6th, the downward sloping trendline from August 26th, the 50 day MA, combined with the upward trend line from the recent lows created a strong resistance after a 3.5 day run up. ES1! futures stopping a few ticks below 3900. 3 day pumps are the norm.
-Gap at 408.6, 200 MA and downward trend line from the ATH creating the next target to the upside.
Outlook: I definitely believe there is more downside ahead for the markets into 2023. Although today's price action and macro indicators are pointing down that does not guarantee we have seen the end of this rally. Upside gap to 408.6 is being eyed by the bulls. Perhaps by no coincidence the 200 MA is closing in on that price. Those combined with the downward trend line point to a mid November rally adjourning. Bulls looking to load back up around 375 SPY. Breaking through 375 shows the bears have gained control and we have entered into a longer correction formation or new wave down.
Taf's Gun to the HeadLooking buy Nat Gas on the backdrop of a strong daily support holding.There is also a potential bullish inverse Head and Shoulders forming.
Entry:6.729
Target:7.282
SL:6.503
RR:2.45
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SHORT EURUSD - UPPER DOWNTREND CHANNEL & RESISTANCE AREA REACHEDEURUSD looking to have finished its correction phase back to the upper downtrend channel and resistance (supply area) at 0.9890-0.9990.
If rejection and no break of the upper channel of the downtrend channel, then it will be confirmed downtrend continuation and into the downtrend channel (new low) and into the next demand and support area at 0.90-0.93.
Forecast CNYRUB #FOREX #CNYRUB
Good Saturday night to everyone!
What's happening now? The Central Bank of the Russian Federation continues to keep the ruble exchange rate in manual control, which is why we are observing a protracted lateral movement.
But now we will not dive into the fundamental wilds of why, why and who benefits from it, but just see what our trading system says. Especially yesterday we were all very emotionally stressed:)
So there are still two key magnets on the system at the top - on ~ 11.3 and ~ 13.3
Before that, it is likely that there may be a decrease in the green zone by 6.5-7.3, where you can rebalance the foreign exchange portfolio, that is, add more yuan.
At the same time, you need to understand that markets, like a world device, are now staggering and moving extremely high frequency, so any deal now is a risk!
Calculate the risks in advance so that the psyche is intact in cases where everything does not go according to plan.
* This post is not investment advice
GBP/USD jumpy after BoE interventionIt has been a volatile day for the pound. GBP/USD started the day with losses but has reversed directions and posted strong gains in the North American session. GBP/USD is trading at 1.0799, up 0.61%.
The new Truss government has started off on the left foot, sending the pound to a record low in the process. The trouble began on Friday, as Chancellor Kwarteng's mini-budget promised tax cuts, despite soaring inflation which is hovering around 10%. The mini-budget was widely panned and the pound sank like a stone on Friday, falling a stunning 3.6%. The pound lost another 1.5% on Monday and dropped to a record low of 1.0359.
The scathing criticism was not only domestic. The IMF has joined the chorus of boos and attacked the government's fiscal plans, going as far as calling on the UK to "re-evaluate" its tax cuts. Moody's warned that the plan could jeopardize the UK's credit rating. With the new government's credibility seriously undermined, it's no surprise that the pound is taking it on the chin.
In a dramatic move, the Bank of England has stepped in order to avoid a possible crash in the bond market. There had been speculation that the BoE might deliver an emergency rate hike in order to prop up confidence and the ailing pound. Instead, the BoE said it would unlimited purchases of government bonds of 20 years or longer. This pushed 30-year bonds sharply lower after they had climbed to 24-year high, and the pound has moved higher.
In the US, ten-year Treasury yields pushed above 4.00% earlier today, for the first time since 2008. The markets are showing a healthy respect for Fed hawkishness, even after inflation weakened in the past two inflation reports. There is some optimism that the current rate-hike cycle is reaching its end, with Fed member Evans stating that it will be appropriate to slow the pace of tightening at some point. For now, the US dollar has momentum, driven by an aggressive Fed and weak risk appetite due to worrisome developments in the Ukraine war, including the sabotage of the Nord Stream pipelines and Russia's plan to annex parts of Ukraine.
GBP/USD is testing resistance at 1.0742, followed by resistance at 1.1052
There is support at 1.0644 and 1.0431
EUR/USD falls to new 20-year lowThe euro is in negative territory today, after posting six straight days of losses. EUR/USD is trading at 0.9553 in Europe, down 0.41%.
September can't end fast enough for the euro, which has declined a massive 4.8% against the dollar. Earlier today, EUR/USD fell to 0.9536, its lowest level since June 2002. With the war in Ukraine escalating and Nord Stream reporting that its pipeline was deliberately damaged, it's hard to be optimistic about the euro's outlook.
The sham referendums in Russian-occupied Ukraine have ended and predictably, the vote to join Russia was close to 100%. Moscow is expected to declare on Friday that the territories are being annexed to the Russian Federation, sparking fears that Russia could resort to nuclear weapons to defend what it claims is Russian territory.
There was a further escalation in the Ukraine war last week, as explosions at the Nord Stream 1 and 2 pipelines are suspected to have been sabotaged. Nord Stream 2 has been shelved and Nord Stream 1 has been shut down for weeks, and any faint hopes that Russia might renew gas exports through Nord Stream have been dashed. European natural gas prices have jumped in response to the news.
The US dollar continues to rally, and 10-year Treasury yields pushed above 4.00% earlier today, for the first time since 2008. The markets are showing a healthy respect for Fed hawkishness, even after inflation weakened in the past two inflation reports. There is some optimism that the current rate-tightening cycle is reaching its end, with Fed member Evans stating that it will be appropriate to slow the pace of tightening at some point. For now, the US dollar has momentum, driven by an aggressive Fed and weak risk appetite.
EUR/USD is testing support at 0.9554. Next, there is support at 0.9419
There is resistance at 0.9640 and 0.9711
Cup And HandleWhat do we have?
1) A pattern beloved by all boomers - Cup and Handle
2) Money printing because of covid and war
3) Mass draft and mobilisation of russian citizens who was serving in the army (90% of them did) happening since today
4) Potential North Korea and Russia Alliance to revenge for Korean War
5) Maximum panic and end of the world in the head of traders is possible, 69% chance
The strong rebounce of bitcoinThis should be the strongest and final rebound of bitcoin as it going further down. My prediction will be 16k before the bottom is really bottom.
We already hit 18k, and it immediately rebound to 19k, which apparently is a cat market - dead cat bounce.
Still the economy is not stable:-
1. The Ukraine war is escalating or there are no way out still, the USA still sponsoring Ukraine with millions of support. And Russia had determine to turn off the gas pipelines.
2. The China lock down or so call communism close down policy. Is rather fishy and insane or not making any sense. To just selfishly contain economy within China and remain exporting goods to outside. This mean that, they can make your money and you can not even make theirs.
3. The economy of whole world is frozen by covid-19 for 2 years and just seeing it start to melt. The melting process take longer than expected. People do not want to travel due to safety or rigid process. And yet some country do not want you to visit them. It's just not going back to pre-covid era.