JP225 trade ideas
JP225USD Great opportunities aheadI am currently long in this pair since the previous idea that I posted I think last week ago. I have managed to scalp this pair on multiple occasions with great profits. Although long term I do expect price to break from the pattern that has formed, has of right now this are the movements that price could provide us on the four hour chart. After completion of current move is complete and price reaches marked area, it could provide with two profit target levels for shorts, and then long opportunities could be taken again. Either the one marked on the first arrow or the second one. A position could be opened if, and only if, price manages to reject on multiple occasions the marked area. Entries could be taken from your preferred entry strategy e.g. Wyckoff Schematic on lower timeframe, Fibonacci from smaller swings, etc.
Stocks - What Next?Idea for indices:
- As expected, Robinhood IPO was the trigger for global sell-off (other factors involved obviously, but I have been posting about everything macro related in other posts).
- China continuing to lead down.
- Look how the deflationary wave hits HSI > Nikkei > EU > US. Dome tops forming everywhere.
- ECB actually has greater QE than US, so EU index performance is a critical tell for deflationary forces vs. QE.
- Watch China Tech ETFs to lead US indices down. Managers will need to also liquidate US positions as their portfolio % exposure becomes overweight.
I've been enjoying watching Nikkei lately - it just broke a critical support and 200 DMA (6m low), officially a bear market if it consolidates losses. However, it is still holding 50 WMA and 200 DMA in real performance... waiting for US markets for confirmation.
Bearish bias here, turning point is due. Aug 2 debt limit will be in focus. Early August is my trigger for reversal confirmation. If it holds, we can back off and try again later, but rugpull is definitely due.
Already short US indices (long vol).
Nikkei real performance (relative to currency):
Here is what I think will happen to Nikkei next:
GLHF
- DPT
Bullish flag on 225JPY. Price failed to break previous low creating today a higher high on the daily chart, indicating a possible market structure shift. RSI three touch bullish divergence. Market structure broke previous minor resistance adding another confluence. Overall bigger trend is bullish while minor trend is bearish. Looking for a break of the flag and continuation. Usually this patterns take a while to break so will be taken as a swing trade.
JP225USD Long Pivot: 28480.00
Our preference:
long positions above 28480.00 with targets at 28685.00 & 28780.00 in extension.
Alternative scenario:
below 28480.00 look for further downside with 28380.00 & 28280.00 as targets.
Comment:
a support base at 28480.00 has formed and has allowed for a temporary stabilisation.
Nikkei Options Strategy for coming monthsThis is an idea for trading INDEX:NKY options.
In recent months, Nikkei index did experienced some volatile moments, however, they were all short-term momentum that they were unable to be met with trends that lasted for months or even weeks.
The author of this article believes that this trend to continue.
So, I suggest opening an Iron Condor spread which captures the prices between the lines drawn.