XAUUSD CURRENT MAJOR LEVELSGold continues to replicate the price action of September 26-28, with the price now below the 4H MA50 (which is at 1,647.10 on XAUUSD) but is holding the 1,634.60 low. This makes Gold a buy opportunity on a 1 week basis (target the 1D MA50 at 1,680), but we need to take into consideration Thursday's heavy fundamentals (ECB Rate Decision and U.S. GDP) as the long-term trend remains bearish (1D RSI # 42.106, MACD # -16.530, ADX # 30.971) so I'll keep my stop tight on the above level. Only a break above the 1D MA100 (currently at 1,735.16) can reverse the trend to a bullish long-term sentiment. As mentioned these past few weeks, the US10Y is primarily dictating Gold's trend and its 1D RSI is showing a bearish divergence (which is bullish for Gold). A closing below 1,634.60 would be a sell break-out entry for me, targeting 1,620.
US10Y
S&P 500 & US10YFundamental :
10/21/2022 | 19:24
US equities surged mid-day on speculation about the extent of monetary policy tightening (thus media speculation about the path of interest rates after November).
Treasury (bond markets) yields fell following a Wall Street Journal report that some Federal Reserve officials are no longer comfortable with the pace of interest rate hikes.
The Fed has raised its target funds rate by 300 basis points since it began tightening policy this year. The probability of the Fed raising rates in November by 75 basis points is over 92%, according to the CME's FedWatch tool.
“Hope that the Fed can temper or take their foot off the accelerator slightly helps the market,” said Andre Bakhos, managing member at Ingenium Analytics.
The US Dollar Index depreciated 0.8% to 112. The greenback weakened 2% against the Japanese yen to 147.27, falling from its highest level in about three decades.
10/21/2022 | 22:50
The S&P 500 index is up 4.7% weekly as positive third-quarter results drive strong gains, particularly in the energy, technology and materials sectors.
This week's advance was driven by quarterly earnings that beat analysts' average estimates. Even as companies report challenges such as inflation and supply chain issues, many show they have still managed to beat street consensus estimates.
That contributed to a relief rally after stocks fell in the weeks leading up to the results on worries about the impact of macro issues including inflation.
All 11 sectors of the S&P 500 rose this week, led by an 8.1% jump for energy, 6.5% for technology and 6.1% for materials. Other strong gains included consumer discretionary, up 5.6%, and communication services, up 5%. The smallest increase was recorded by utilities, up 1.9%.
10/21/2022 | 22:50
Wall Street ends higher driven by hopes of a slowdown in monetary tightening.
Some Fed officials have signaled their willingness to debate whether and how to signal a plan for a smaller rate hike in December, according to the WSJ.
San Francisco Regional Fed Chair Mary Daly said the Fed should avoid pushing the US economy into an "unprovoked downturn" by tightening monetary policy too much.
Stocks rise on Friday as the media report fuels optimism that the Fed's stance is easing.
Technics:
Range and MMA20/MMA50 broken on the rise this Friday 21st by 4 candlesticks (on a 4H vision) then rebound at the $3820.0 level.
The Average Directional Index is below 25 which indicates a slide in the price of the asset in the short term (ADX based on a MA of a 14-day range), but is in the process of increasing.
Bearish short-term momentum pointing to an upcoming temporization zone, an idea reinforced by a Stochastic indicator above 80 (indicating an overbought zone).
In addition, there is high Volume at levels below the new support line ($3730.0), although this volume is mostly representative of the buying force.
Money management:
1 position BUY on US10Y
1 position BUY on S&P 500
US 10Y yield convergence of resistance levels around 4.19/20We have a convergence of levels around the 4.19/4.20 zone of the chart, it is a long term double Fibonacci retracement and represents significant lows seen in 1998 and 2001.
Will be quite interested to see if the market pauses here in order to consolidate sharp gains that have been pretty relentless since August.
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Forecast US10YGood day everyone! Don't forget to put your thumbs up and write your comment if you like the idea
The bar for 10-year Treasuries has been broken.
The 10-year Treasury yield has broken the trend at 3.8%. In fact, this opens the way for growth to indicators in the range of 4.5-4.6%.
There are elections in November, and we need to show at least some effect from measures to combat inflation. This is the main task. Well, what's next? Let's assume that we managed to somehow stabilize the situation with inflation (actually or by manipulating statistics is another question) by achieving a target rate of around 4.5%. Let the economy go into recession. And, after some time, start the cycle of lowering the rate again and pulling the economy out of recession? The current rates were in 2008, and the values were 4.5% in 2007. And the Fed had enough of this "reserve" in reducing the rate for almost 14 years.
DISCLAIMER:
The opinion of the author may not coincide with yours! Keep this in mind and consider in your trading transactions before making a trading decision.
Gamble at your own risk - Global Financial Crisis of 2022/2023Do not pray to the false gods of guaranteed bailouts.
"The problem with all this is that it's their own policies that created the fragility, their own policies that created the dislocations and now we're relying on their policies to address the dislocations," Peter Boockvar of Bleakley Financial Group said. "It's all quite a messed-up world." -CNBC
Not everyone survives.
10 Year Treasury real yields showing a clear sign that liquidity is collapsing, the fastest rise since 2008.
US10Y Pull-back aiming for the 1D MA50 at least.This is the U.S. Government Bonds 10YR Yield (US10Y) on a 2 year horizon. As you see its aggressive rise can fit only on a Fibonacci Channel. The recent pull-back happened after the price hit the 2.5 Fibonacci extension and the 1D RSI a largely overbought level and the price is already on the 2.0 Fib.
As you see, the strongest buys throughout this period have been then the RSI hit the designated Support Zone. Also the strongest pull-backs dropped the price a whole 1.0 Fib level lower. From the previous 2.5 High, the low extension is at 1.5 and that gives us still some room to sell and target at least the 1D MA50 (blue trend-line).
Technically it would be best to buy once the 1D RSI enters the Support Zone again, even if that means missing on the lowest possible level. From were we stand today that could be as low as the 1D MA200 (orange trend-line). Regardless of the exact bottom, as long as the 1D MA300 (red trend-line) holds, which has been supporting since January 06 2021, the bullish target is the 2.5 Fib and the 3.0 in extension.
If the price breaks below the 1D MA300 though, we will consider this a long-term trend change to bearish and should switch to a sell-the-rebounds strategy. That would affect all asset classes from stocks to Gold etc, but when that happens we will have plenty of time to analyze it.
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Morning Update: Bonds vs. The MarketYesterday I saw some comments about how bonds yields have come down recently and that is one of the components aiding the stock markets recent bull run. The above chart is the 10yr Treasury. If you could flip this chart upside down, it would be a chart of the SPX.
Here's my concern with this chart and how I'm looking at the SPX. This pattern is not done to the upside in the 10yr. It appears this trend continues well into 2023....where as I am looking for a bottom in the SPX this month or beginning of November. I believe every chart stands on it's own. But its hard to ignore the long standing inverse correlation between bonds and stocks. If this correlation continues into 2023...(I have no information to think I will not) then it is possible this low I'm looking for soon in stocks is just a larger A wave and this wave IV in the SPX and this pattern could drag well into new year.
We will know if the next decline in the SPX is one in which we loose any MACD positive divergence we have had on the daily SPX.
Best to all,
Chris
Updating this very old US10YThe bond bull is over and the new path to rising rates. It looks like we have reached the resistance of the red box , there is a chance we do an over shoot like we did at the bottom and then reverse to the green box ( which will be adjusted is the if we over shoot). Then we keep rising in a wave like manner.
Market recapWith the interest rate hike correlation to US10Y Bonds, as the rates are rising we are seeing demand for risky assets drop off, people are cashing out of these asset classes and money is moving to bonds, in consequence we are seeing the USD start gaining great strength.
The US10Y market is very interesting, as we appear to have broken a downtrend on the weekly chart going back decades, trendlines are neither here or that but with such a long history does this maybe add any more validity? (Who Knows).
Going forward we could see XAU make moves from its old value area and make a move down to pre-covid inflation around $1200-$1300.
I recently posted a short in the US stock market which I have attached below of where I believe the market will price in if what we are seeing in the rates and bonds continue to occur.
Crypto being the most risk adverse of assets discussed here and the volatility involved imo holds the greatest risk yet, although we could see this obscene dollar valuations as a rare occurance? maybe a DCA approach can lead to good returns overall. However I see large falls inbound whether they happen this week or next who knows, but it is a risky asset class to hold in potential market turbulence we could see over the next few months.
US10Y-US02Y - compare RVGI indicator❌cross and BitcoinUpdate on US10Y-US02Y...
compare RVGI indicator❌cross and Bitcoin
Not a cross yet in the extreme area of this indicator that would mark a quite good entry for BTC
But the next cross for a possible Entry point is ahead dear Crypto Nation 💥🚀😎
Comments & FOLLOW appreciated 🤗
*not financial advice
do your own research before investing
Bond Market Gains from Risk Off ToneBonds appear to be gaining strength as yields relax and the US dollar pulls back hard. The Kovach OBV is edging up, but we have resistance confirmed by several red triangles on the KRI at current relative highs. We appear to be seeing a bull wedge forming, in an attempt to break through 113'00. If so, then 113'12 will be the next target. If not, we will find support again at 111'26.
US10Y - 10Y Bonds: Run Forest RuuunInsanity at it's best.
These market manipulation we see today and the unbelievable cooked reports and stupidity by the FED is killing everything.
The crowd will hold the bag because inflation will spike to the moon.
Here comes the 10Y Bonds - Rolling everything into the ground. Good luck pumpers.
SPX/US10Y/VIX - you are welcomeHey !! So I've been digging and experimenting with multiple market instrument relations and I have picked those three - SPX, 10 year bonds and VIX as they are the most powerful of all. And I have noticed it has been creating a really clear trend of up and downs - comparing it to SPX it has shown that everytime we have touched the bottom trendline - the market bounced - ONLY in 2008 we have crashed way below - but whoever has bought below that trendline - was happy a few years later.
Where are we now? At the lower trendline - a bounce is coded in but I am more than certain, that we will repeat 2008's crash to say the least. We're good for a bounce now, my absolute bottom sits at the bottom trendline.
Monitor the breakout!
PS : Also - the peak from AUG 2020 was lower in price on SPX than we are now.
The US 10 YR Bonds Yield has struck a resistance point at 3.83%
The US 10 YR Bonds Yield has struck a resistance point at 3.83% following a strong rally. It will need to hold above 3.83% to continue the current trend.
The 3.50% is a crucial support point; it could trigger a pullback and provide a relief rally for the stock market if it fails at this crucial level.
More upside for Treasury Yields The treasury yields have been in a decline for many decades, on the other side we have a very unique situation in the equity market. We have over evaluations in many markets, especially in the tech sector that was fueled by the billions of dollars pumped into our economy during he pandemic. The interest rates were heavily suppressed and this country experienced the lowest multi-decade interest rate environment in history. Like a charged spring it was ready to burst; we can see the bottom being reached in August of 2020 as everyone rushed to buy, refinance, take loans, buy cars and borrow more debt with the assistance of the stimulus payments. Of course this caused inflation to go through the roof.
Looking at the chart from an Elliot Wave perspective, keeping it simple and clean to understand, we can see an incomplete sequence with a beautiful extended 3rd wave, that is currently in progress of finishing wave "v" of the "(3)". I then expect a sizable 3 waves or triangle pullback down for wave "(4)". After the wave (4) pullback the sequence will still look incomplete and I will expect another wave (5) to the upside and into 2023. This will surely way heavily on mortgage lenders, those looking to buy a home, auto, or take out any new debt. Suddenly a 5% rate on US05Y becomes realistic. I expect other US treasury bonds like the 2, 10, 20, 30 year to rise and have similar wave structure as well.
US10Y, It most likely goes higherIs the correction over for US10Y ?
Elliott wave count suggests that US10Y will go higher and uptrend resumption may has been started.
US10Y as shown on the chart is in typical Retracement zone for wave 4s. Wave 4s usually retrace not more than 50 % ( some experts accept a shadow down to 0.618 level) of wave 3. In addition our wave iv is in territory of circled wave 4 which fulfills one of important Elliott waves guidelines which says : :larger degree wave 4s usually end in territory of smaller degree wave 4s.
upside targets are also shown on the chart which were obtained by typical Fibonacci levels for wave 5.
please note there is one more impulsive section on the wave pattern on higher degree waves. I did not include those wave labels to keep the chart simple and clean.
Good luck everybody.