Hey Guys
Looks like we are at the start of wave 3 down.
The Corrective Move
The ABC correction is in place, with a nice triangle forming for a breakout to leg C.
Contracting triangles are quite common in B waves.
We need a clean break to the downside for leg C of the correction (Below 2860)
This set up looks good for a short and gives impetus to the bearish...
Common things seen in chatrooms and heard on Bloomberg.
"Its all priced in"
"Don't fight the Fed"
Uncommon things not heard on Bloomies and the cause of Permabull cardiac arrests.
"Wave 3 is coming" (Elliott)
"Wave 2 as well" (Covid-19)
"Oh look we bounced off a fib level"
I'll put it simply, we need to retest the lows.
The rally has been far too rapid and...
The S&P 500 looks to have reached a top in what I believe has been a bear market rally.
After its best month in 30 years a natural pullback should be in order, however, given the history of bear markets and bear market bottoms we are more likely to see a retest of the low in the coming months, rather than a simple bull market retracement.
The fundamentals...
Fundamentals
The Dollar index has seen strong performance over the last year, however, last weeks performance could indicate a breakdown in dollar strength. Much will rest on this week's US Jobs report, with the hawkish Fed hike already priced into the dollar strength.
Last week the EU posted relatively strong numbers including growing inflation, however...
Let's be honest, so far this year and for the last few years gold just hasn't performed. However, this may be an opportunity for a bullish turnaround.
Fundamentals
- Gold is largely tied to the performance of the USD, which explains its bearish trend this year
- Powell is expected to continue the hiking cycle into 2019, however their have been rumblings about...
BTC is currently trading in a descending triangle. The long-term support at $6000 USD is being tested yet agian.
Volumes point to further downward pressure and a possible breach through the support level.
While bitcoin remains a valuable, however, contentious asset, the strength of the USD has also played a significant role in price declines
The Fed is expected...
