Silver trade updateThe break at the low of wave 4 is going well and war tensions between Iran and USA are increasing demand and prices for safe havens.
So far no positive news is out regarding the conflict. Looking at the overbought shooting star candle at around $18 level, it would seem that a pullback could happen. So far still bullish on silver and gold. Waiting for new highs to add more long positions, stop below the recent highs.
Fundamental news is key here so watch the twitter feed for announcements
WAR
USDJPY trade planAfter unprecedented attack from USA sanctioned by Trump the week turned into quite roller coaster. War threats with Iran have created a fearful first week in the market as safe havens surged with gold and silver gaining around 2.4% and 2.7% respectively since the start of 2020 as investors are trying to protect their capital from exposure in risky markets. JPY of course was a massive gainer, USDJPY fell through the channelled resistance and now found key support level just below 108.
This weekend we are waiting for the new development between US and Iran to understand the next direction of this pair.
A fall through support would indicate continuation of a short trade.
Looking at 1 hour time frame in comments section a down trend line and small resistance zone show potential level for reversal and a buying opportunity.
This trade will be largely determined by fundamental news from Iran and White House and I will update whenever news come out.
Good Luck!
CPE an inexpensive bet to profit from Iran conflictWith energy prices rising and war with Iran looming, it's a good time to buy a company that exploits domestic oil resources in the United States. The problem with many such companies is that they either trade at a high multiple or their long-term prospects are very poor. Callon Petroleum, which drills oil and natural gas in West Texas, avoids those problems. With a P/E of 4.56, a P/B of 0.44, and forecasted earnings growth for the next couple years, CPE is a strong value for the long term and also should benefit from any escalation of Iran conflict in the short term.
CPE has had a tremendous amount of trading volume in its current price range.
GBPUSD: POUND THE BUCKDespite what seems to be an everlasting downfall, the GBPUSD pair is currently in an uphill battle, literally. Climbing up in its current channel, the price point has recently tested what I consider a 'break-out' but failed. Not losing too much of its momentum, the price point fell from 1.35052 to 1.30844 where it rebounded with nice support. A 'break-out' was then again restested on December 31st but also failed. Despite failure, the price point found support at 1.36012 (higher than the previous support level). Also sitting on the bottom of its uptrend channel, it looks like the Pound is posed for a successful 'break-out' in the coming days. With worldwide tensions rising and pressures mounting against the USD, would this be of much surprise?
P.S. The 12H chart also shows support under the current price level. Both 50 & 200 EMAs are sitting close by. Seemingly, awaiting the right time to push the price point up.
AND WHEN MARKETS PANIC AFTER GOING WILD!The DJI was dented significantly over night by three main events:
1. Trouble in Iran.
2. China - withdrawing some companies from the LSE
3. North Korea - powering up to cause America a headache.
There was panic selling in the middle of the night which started with the news on Iran.
Important trend lines up to 2 hourly were penetrated.
Could this be the pinprick that pops the bubble? We'll only discover - after the pop! LOL
ORBEX: US Air Strike Sends Oil and Gold UP!A US airstrike at the Bagdad airport killed Iranian General Qassem Soleimani’s.
Not only this is going to increase geopolitical instability in the region but it also questions the legality of the President's decision as he acted without Congressional approval!
US-Iran relations are taking a sour turn early in the year following an “extremely dangerous” attack that could set off a war.
See how oil and gold have been affected so far and how they are likely to perform in the short-term.
Timestamps
WTI 3H 01:50
GOLD 3H 04:15
Trade safe
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
PETR4 - Attack x Defense AnalysisAs a war game, there are base points to be defended by the owner.
Armies will fight to gain control of these points.
The stronger side takes the base point and attacks the next forward point.
The weak side just try to defend, back to the next base.
The points are the known resistances and supports.
Strength is measured by the result of each action.
Here comes Sun Tzu's knowledge in The Art of War.
COLD WAR 2.0 / WW3 / NUCLEAR HOLOCAUST investingThis is what a market bottom could look like.
Currently some nice rsi bullish div. Looking like it is in a bull flag. Appear to have had our capitulatory move. Fundamentally speaking we are working our way to the end of the world so we can see a catalyst like a nuclear arms race or world war breaking out. Is this chart the hourglass for humanity?
If we break the green line and can close above $11.74 this is my buy signal and the hour glass will begin.
Stop loss will be if we break the low at $10.
10% risk for possible 10x reward IMO.
Significant levels are the white lines.
Doomsday clock in a chart.
Like and follow if you don't wanna die.
G-D HELP US
15 December, the US will implement tariffs on $156B on ChinaTo offset the additional tariffs the CNY would have to depreciate - although the Chinese authorities have said that they won't pursue quantitative easing.
If there is a formal announcement to suspend or delay the tariffs, the market would expect a more positive risk reaction and that is currently being priced in. WIth the USDCNY trading around the 6.90 and below the 7.00 psychological level that was key back in the summer.
If Phase one of the deal does not pass and the tariffs go-ahead, we would expect the USDCNY to trade above the 7.100
My paradoxical impeachment trade deal tradeReasons for the paradox in this trade:
Trump's impeachment is uneventful at this moment in time
Yet this impeachment may cost him his re-election creating a possibility for easier trade negotiations
With AUD off to the highs especially with there being good data today, let's see how far this thing goes
AUDEURDespite the RBA setting a dovish when it comes to all things $AUD this spike in price action has caught my eye, enough for me to justify a pre-emptive move in the name of $AUD strength.
Trump's impeachment at the house will not have an impact because the senate where Republicans hold the majority will not vote against their own political leader (well at least that is what the general consensus is); however this does not make Trump look good in the public eye and with elections around the corner this threatens his re-election prospects.
Which is enough to garner a few smiles across the pacific in China, where a scenario of Trump not in office would surely improve Chinas seat at the table of negotiations.
Coffee is on a rise! It must be the caffeine I have just closed out a +8% trade and I am going long again.
The initial fundamentals where:
Brazillian drought
US-China trade war increasing agriculture exports out of Brazil
Weak $BRLUSD
Although some of these fundamentals are starting to wane, the technicals continue to show that Coffee has more to go
SPX, VIX and SKEWThe movement of the SPX are reflected in the VIX (volatility index) but the signal seem to arrive when the SPX index is already too advanced in the retracement. The SKEW signals earlier on. The signal from SKEW starts with lower lows, then the volatility increases and SPX dips.
Sell when the SKEW starts hitting lower highs, then BUY when the VIX index is peaking.
S&P 10 year trend, a case for 3800 upside, 600 downsideI use the S&P versus DOW and Nasdaq in order to cast a broader net across more assets however, the other markets seem to echo similar despite having choice selection of underlying assets. For the last 10 years since the recession pounded the markets, we have maintained a clear ascending channel exhibiting strong support and resistance trend lines.
The trend line held to mid-channel nicely through 2017. The USG gave corporations a $500B USD a year tax break at the beginning of 2018 and the markets rallied but still fell well short of top of channel. As we saw bolstered earnings quickly dissipate over the year, the S&P came back to its comfort zone, mid-channel until the 4th quarter when trade wars escalated and markets struggled (breaching support at levels not seen since the recession).
In an effort to prevent the stock markets from turning, the feds started printing money (QE) & reduced the prime interest rate 3 times this year(2019). These are tools we had last relied on heavily during the height of the recession. With each rate cut, we see a small and repeatedly diminishing wave up. It appears as though, despite all the fuel the government is feeding the market, it just doesn't seem to be enough.
There have been a lot of false alarms for a trade deal between the worlds two largest economies but once its inked, it has a high probability of fueling the fire. There is a great chance that an America/China trade deal along with significant reductions in global tariffs could catapult the S&P to 3800 for 25% gains from today's value (along with global markets). It looks like the US has to make a trade deal with China soon to prevent the markets from souring on us.
In the event a trade deal isn't inked soon, it seems like the bears may take over and who knows how far the markets will retrace - 40%(S&P@1800), 50%(S&P@1500), 60%(S&P@1200)? How about this, scary (possible not probable), definite possibility >>> We may be seeing an overall downtrend forming, indicated with a light grey line at the bottom of the chart. If this a hard trendline forming, we could see S&P spiral out of control down to 500-600 before it finds support.
Disclaimer: I am currently holding S&P ETF options and see a great opportunity to straddle here.
Bearish Idea on FTSE China A50 by ThinkingAntsOk4H CHART EXPLANATION:
We observe that price has bounced at the Daily Top level and was rejected strongly. We are waiting for a breakout of the Ascending Trendline to take short positions here. In the short term, the potential targets are the Support Zone, and the main ascending Trendline.
SPY short term fallToo much uncertainty with the US economy, combined with negative pointing indications. Definitely going down short term. 2 possible rally points for Monday, either the 297 support line, or the next 296 support line. If both of these fall, then it will be a very very very hard climb back up. I wouldn't go long on SPY for a while, just to be safe.
DxY 2020This Possibility Source in My DowJons Idea
My Unconsciously Forecast Considering the technical and fandamental is inaction for Dow and Dxy in 2020
Challenges Related to Electronic Companies
Economic War
Supply and demand of weapons and arms sales
US sanctions on big countries like Iran
annnnnnnnnnnnd its very impotant >>>>>>>>>>>>5G<<<<<<<<<<<<<<< technology we most see america can sell this Equipment in euro and asia
Great contribution of economic war is >>>>5G<<<<<
ORBEX: Syria Operations Weaken TRY, Brexit Looks Good Pre-SummitIn today's #marketinsights video recording I analyse #USDTRY and #EURGBP #FXMinors!
Turkish Lira Under Pressure on:
- Risk of sanctions
- Launch of military operations in Syria
- Bank charges for money laundering and fraud
- Breather short-term amid US Retail Sales
Pound Higher on:
- Negotiations optimistic ahead of EU Summit
- BoJo's attempts to get deal through better than May's
- New customs border in the Irish sea; proposal
- EU likely to agree on that deal, then through parliament
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
WAR WITH IRAN AND SLOWING US ECONOMY || The Higher We Climb...I could've titled this one as "what goes up must come down" and all that BS.. But the point is clear, RECESSION is not a possibility anymore.
FED lowering rates just to keep economy afloat.
FED had to make emergency injection of more than $125B over the past 3 days. JUST TO KEEP THOSE RATES BELOW 2.25%!!!!!!!!!!!!!!
RECESSION fears keep on rising.
Strange shit is going on with Middle East (more strange than usual).
If war with IRAN won't start till the end of the year, U.S. economy is fucked. I think it's not a secret that the key basis of U.S.' economy is WAR, proxy-war for natural resources kept U.S. economy and all your precious indexes up and going for almost two decades.
It's time for U.S. to double down on their way of doing business by starting yet another WAR or rip the consequences...
Defense and aerospace stocks could get breakout to new highsOne of the items on my watch list is DFEN, the Direxion Daily Aerospace and Defense Fund. This ETF tracks companies like Boeing that would supply the US government with jets and drones in the event of a war with Iran. I'm not buying the fund yet, because it's at the top of its month-long parallel channel, and it's very close to its all-time high at 64.50, without much support on the volume profile. However, if it does start to look like we're going to war with Iran, I think we may see a breakout. I am watching closely to buy any breakout above either the parallel channel or the all-time high.