TRADERSAI - A.I. Powered Model Trades for Today, THU 08/15The Doublespeak from China and our Politicians Driving the Markets Yo-Yo
The naive and clueless policy-by-tweet politicians (not "leaders" - we seem to have no leadership anywhere anymore at this moment) driving our economic governance (or, lack thereof), and the cunning opponent's deeply strategic moves defining the trade war, investors are being left dazed and confused with the whiplashes the markets are experiencing of late.
As we stated earlier this week, "tread (and, trade) carefully, leaving enough room for sudden spikes in either direction". Today is likely going to be yet another day of empty-headed tweets and headlines about the trade war feeding knee jerk moves in the markets.
Of course, our job here is not to idly pontificate about politicians and leadership but to try to identify potential investment and trading opportunities emerging from their speech and actions. Read below for our models' trading plans for the day.
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Tradewar
Bitcoin medium-term negative outlook based on economic risksBitcoin is a valuable property. In future we need this kind of exchange mediums. So long-term trend still positive but its price is closely related to business cycles. This is for it being as an exchange medium. In trade war situation, more secure commodities like gold are more interesting and exchange medium ones are not.
Technically, below 9575$ and 8850$ strong sell signals. above 1200$ the analysis isn't relevant and positive trend will continue.
Pause in trade war shifts market focus on another dataA temporary truce in the trade war was announced. Well, of course, a “truce” is not the right word we prefer a “pause”. The appreciation of the renminbi, as well as the decline in the VIX Index, are further evidence of tensions easing in the financial markets.
Against this background, we again pay attention to the sale of gold. But we note that sales with the random points may turn out to be unprofitable, so we select the entry points carefully, taking into account at least an hour overbought and along daily maximum.
Recall that the dollar is still very strong, which is bothers Trump. And in itself, it is an opportunity for its sales in the foreign exchange market. But the markets are more interested in the Fed’s further actions - will the Central Bank cut the rate again&? What could spur the Fed on easing monetary policy? First of all, weak macroeconomic data. So today's retail sales data may well give rise to dollar sales.
Retail sales report is a monthly measurement of the retail industry. Monthly retail sales data is a chain indicator. That is, The report shows the total sales for the prior month. This specificity leads to the fact that chain indicators tend to fluctuate around the zero and after a strong growth period a decline period follows, and vice versa. So, over the last two months, US retail sales have been growing. To show better results this time too, the indicator must rise quite significantly concerning the three months periods. The US economy has been weak recently, there is a reason to expect weak data on retail sales. Since markets react not to the essence, but to the gossips, the outcome of the indicator in the negative zone (although this may be an increase relative the period of two months ) can trigger dollar sales. In this regard, today we will sell the dollar. First of all, against the pound.
Eurozone GDP grew by 0.2 %, however, industrial production decreased, and quite significantly (-1.6% m / m), which is the worst result over the last 3 years. China also showed weak industrial production data: plus 4.8% expected plus 5.8% (the minimum growth rate since 2002). Retail sales in Sino are also worse than expected.
Overall view of EURUSD - Update of August the 5th's weekFundamental: US President Donald Trump tweeted his disappointment in the Fed on Thursday which caused some volatility but did not break EUR/USD from its range. His tweet stated that he was not happy about the dollar’s strength and attributed this to the Fed, stipulating that they have kept interest rates high compared to other countries. Trump's eagerness to lower DXY's value will probably give some punch to the FOREX pair which will seek for higher prices.
Technical: After a false breakout of the long run demand level resulting to the new low of the year, EURUSD soared to higher levels and is now consolidating on a tight range. The pair is strongly bullish and in case of a range breakout will settle back at the supply level .
Advice: Stay bullish and buy any low points while we don't break downside @1.11500. The first target could be viewed around @1.13000.
Overall view of WTI Crude Oil - Analysis of August 12th's weekFundamental: International-Brent crude oil futures closed higher on Friday despite an International Energy Agency report that showed demand growth dropping to its lowest level in 11 years. The IEA said global demand to May from January grew at its slowest pace since 2008, hurt by mounting signs of an economic slowdown and a ramping up of the U.S.-China trade dispute. Buyers instead were motivated by Euroilstock data that showed total crude and product inventories of 16 European nations in July were slightly lower than in June. Likewise, the commodity is strongly correlated to the US dollar index which showed lately a bear spike and increased odds of oil soaring.
Technical: the energy commodity settled several times at the demand level forming a head and shoulder formation (or Triple bottom). An increase of traded volume coupled by a strong momentum made oil increased 7.42%. USOIL began a bullish trend and will attempt a breakout of the supply level.
advice: Stay bullish and buy any low points while we don'T break downside 51.000. The target should be set at 60.000 or higher.
Delayed tariffs "for Christmas" might help HASBRO
News/fundamental
The USTR says that the tariffs on some items, including “certain toys,” will be delayed until Dec. 15.
September is a key shipping month for those companies as they prepare for the holiday shopping season, when the majority of the industry’s business occurs.
Hasbro told CNBC earlier this month that it would have “no choice but to pass along the increased costs to our U.S. customers” if the tariffs were put into place.
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Great risk reward ratio.
IBM due for a pullbackFundamental data
IBM reported earnings and reaffirmed guidance. It was up over 5% on the news.
Trade-war:
"The U.S. Trade Representative said Tuesday 10% tariffs on about $300 billion in Chinese imports will go forward, but tariffs on some goods will be delayed until Dec. 15. Those items include cellphones, laptop computers , video game consoles, some toys, computer monitors, shoes and clothing."
The cellphones could be the reason for AAPL rallying today.
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There is a good risk reward ratio (check out chart).
Dow Jones - Trade war tariffs delayed!!!Ok so good news just now from US as the tariffs will be delayed until December 15. Immediate massive reaction, shares and indices flying. Now waiting for the volatility to come down before adding more long trades on pullbacks.
Here are quotes from US Trade Representative (USTR) Lighthizer, according to Reuters:
"Some products are being removed from China tariff list based on health, safety, national security and other factors; will not face additional tariffs of 10%."
"It intends to conduct an exclusion process for products subject to the additional tariff."
"Other products for which tariffs are delayed are video game consoles, certain toys, computer monitors, and certain items of footwear and clothing."
"Will publish on its website today and in the federal register as soon as possible more details, lists of the tariff lines affected."
Good Luck!
GBPJPY update Much like cable, GBPJPY approaches 125, the low of the aftermath of the Brexit vote. Broken weekly trend line shows more potential on the sell side. Trade war and geopolitical tensions cause investors to dump risky assets and go for safe havens, massively boosting JPY.
This week continue to sell to 125 and watch for next setups at the level, we could retest the broken trend line first. With current economic and political situation both in regard to Brexit and global economy, this pair seems set to break below 125 despite oversold technicals.
Unless we see progress in Brexit or trade war, this has further sell potential. Good Luck!
Is Apple About to Plummet?On our shorter time frame, it feels as though Apple may open the day lower come Monday morning, and looking at our 1 day time frame we can see that we just got a buy signal from the Megalodon and it has been building some momentum, however it is so important to pay attention to the US and China trade war. This is a huge determining factor for the direction of Apple’s stock in the near future.
The Megalodon indicator uses a machine learning algorithm, combined with data from over 500 buy setups, and over 2000 indicators to produce extremely accurate buy signals on any and all asset classes! You will also receive real time buy and sell signals for the stock market, cryptocurrency, as well as forex markets! We also completed our cryptocurrency automated trade bot. It trades for you, using our backtested indicator with phenomenal results! So try it today!!!
Overall view of WTI Crude Oil - Midterm AnalysisFundamental View: Oil prices fell almost 7% on Thursday, the most this year, as President Donald Trump’s threat to put additional 10% tariff on China hammered a market already tanking on disappointment over an inadequate U.S. interest rate cut. The fragile economy and looming oil supply surplus will almost certainly be exacerbated by the escalation of the trade war. As a result, the pitfalls for oil are growing.
Technical View: Since the end of June, oil has been on a bearish trend while trying by two attempts to drive prices higher. The 8 consecutive days of consolidation built-up enough volume to create a false upside breakout and dip the energy commodity more than 8%. It is now a selling spike phase eager to settle the security around the demand level .
Target: Stay bearish and sell any high point while we don't break upside 56.000 and aim a take profit around @52.000.
GBP/USD Ready for the Bullish Movement? 4H CHART EXPLANATION:
Based on the Higher Timeframe Analysis, we consider that this pair is on the end of the Bearish Trend. On the 4H timeframe, we would wait to the breakout of the last maximum Levels to be broke to consider placing a trade. The short term targets are the Top of the Descending Channel, the Resistance Zone, and the Lower timeframe Descending Wedge.
MULTI TIMEFRAME ANALYSIS:
-Daily:
-Weekly:
USDJPY - Long Upside PotentialWe have been long USDJPY and see the current level as an opportunity to increase our position due to alleviated concerns over the current state of the US/China trade war. This is highlighted by the S&P 500 rising 1.3% yesterday and White House adviser Larry Kudlow advising that the US is still open to negotiation with China. Therefore we still hold our long position but would not want to see the market drop below the Fibonacci support Level at $104.658 and on the upside in the near term we are aiming for the currency pair to cross the Fibonacci resistance level at $106.663.
Crude remains in bearish territoryThe first potential bearish flag I analyzed has played out though with a delay, and since price has managed to reach the first target to the lower diagonal support. With overall negative sentiment around the trader war and demand for Oil, I will be expecting the price to breach the support for a move lower towards 50.58 price level zone. The zone has proven to be a strong support level, so I'll be expecting some bounce from there before the price to continue lower.
US-China trade war is starting to get out of handChina loses patience. After Trump attacked China, markets have been waiting for China to the response.
Sino inflicted several very strong and unpleasant hits for the United States and Trump personally.
One . China lowered the value of the Yuan below its 7 to 1 peg against the dollar in response to a new series of U.S. tariffs. Thus, China partially solves the problems of its exporters arising from US sanctions. Recall, exporters are going to benefit from the devaluation of the national currency. As a result, with constant sales volumes in dollars, exporters receive more. Which, in fact, artificially inflates the financial results of exporters. Note that Trump for more than a month has been talking about the need to devalue the dollar to support American companies, but so far he cannot find support either from the Ministry of Finance or from the Fed. At that time, China one day solved this problem for itself.
Two . China Halts U.S. Agriculture Purchases. One of Trump's main complaints against China was the decline in US agricultural imports. What caused direct harm to US farmers and the US economy as a whole. So, the Chinese government has asked state-owned enterprises to suspend US agricultural imports. This is a severe hit to the pride of Trump and the US economy.
Three . Bank of America Merrill Lynch warns that China may cross out US administration’s success in restricting Iranian oil exports. US the sanctions and about 2 million barrels per day of crude has been forced out of the oil market, and BofAML believes that China if desired, can return a significant part of them - about 1.5 million b / s. What does this mean for the USA? A powerful diplomatic slap in the face, as well as potential problems for the whole US oil sector. The simultaneous release of 1.5 million b / d of oil to the market will lead to a sharp drop in oil prices. Analysts voiced estimates of decline up to $ 40 per barrel. And this will put the US oil industry on the brink of survival, or even beyond.
Total - everything is bad. Trump may well go to the next level of the conflict escalation. Too painful hits inflicted by China. And this means that commodity assets, including oil, should be sold. A save haven should be bought. We sell the dollar because one of Trump's possible reactions is the dollar devaluation. Currencies from developing countries are also worth selling. The Russian ruble which is under triple (or quadruple) pressure: falling oil, trade war, Russia's Central Bank cut its key interest rate, new sanctions by the United States, dispersal of rallies in Moscow, and this is not counting the main reason for the sale of the ruble - a weak economy of the Russian Federation.