Tradersweekly

Tradersweekly

The SPX is less than 1% away from the all-time high. Yet, its overbought conditions on the daily chart are starting to make a compelling case for a correction. To support this case, we would like to see the RSI break below 70 points (on the daily chart). Additionally, we would like to see MACD and Stochastic reverse and begin pointing to the downside. On top of...

Tradersweekly Updated 

Following the initiation of Operation Prosperity Guardian in the Red Sea, major shipping companies like Maersk and Hapag-Lloyd began to reverse their recent decisions to halt transit through this waterway. That is positive news for the world as the region is estimated to account for about 12% of global trade, with 340 million metric tons of cargo and 8.2 million...

Tradersweekly Updated 

After establishing a new yearly high on 8th December 2023, Bitcoin has been struggling to move higher. In addition to that, technicals on the daily graph began to reflect the loss of bullish momentum and started to turn bearish. Simultaneously, this has been accompanied by an ongoing decline in the number of Bitcoin addresses with balances exceeding 100 BTC and...

Tradersweekly Updated 

Since the start of this month, Bitcoin has been trading above the upper bound of the upward-sloping channel, which begs the question of Bitcoin’s return to it. With that said, there are a few developments that we are paying close attention to. First, the number of Bitcoin addresses with balances exceeding 100 BTC is down from where it was at the start of the...

Tradersweekly Updated 

Since the breakout of the Israel-Hamas War on 7th October 2023, there has been an increasing number of attacks on military and transport ships sailing through the Red Sea, with Houthi rebels from Yemen standing behind many of these incidents. About a week ago, the group went as far as to announce the blockade on ships traveling to and from Israel through the Red...

Tradersweekly

Today, we would like to briefly discuss a few underlying trends in China's economy, touching on the subject of unemployment, demographics, and deflation. Youth unemployment While the unemployment situation has improved in 2023, youth unemployment (for those aged between 16 and 24) has been a longtime issue in China. Indeed, it has steadily risen since 2018...

Tradersweekly

A few weeks ago, we discussed the reversal in Chinese indices and the negative implications for American stocks. Yet, this week, the worse-than-expected data in China’s economy sparked talk about the need for additional stimulus measures in order to boost the post-Covid-19 recovery. At the same time, the FOMC unveiled the U.S. central bank might be a step closer...

Tradersweekly Updated 

With the SPX trading just about 3.8% from its all-time highs, all eyes will be on the Federal Reserve, which is scheduled to announce a monetary decision later today, followed by a press conference. We do not anticipate any change to the FED Funds Rate as we expect the central bank to take additional time in order to assess the lagging effects of previous rate...

Tradersweekly Updated 

In yet first significant pullback since mid-October 2023, Bitcoin shed about 9% of its value in the past three days (with much of the decline coming overnight). In the process of doing so, it retraced almost to the 20-day SMA, which often coincides with corrections of the main trend. Despite that, there are a few developments that stand out to us. First, the RSI...

Tradersweekly

Last week, West Texas Intermediate crude oil reached our price target of $70 and slid as low as $68.83 per barrel. After this route, USOIL has slightly rebounded and currently trades near the $71.50 price tag. In the very short term, we acknowledge a potential for the price to continue higher. Indeed, this would be consistent with a natural occurrence of the price...

Tradersweekly Updated 

The price of USOIL is edging toward $70 per barrel, which is our price target for 2024. However, it is becoming increasingly possible that we will see this price taken out even by the end of the current year. With that said, we want to raise another price target for the next year, valued at $65 per barrel. Illustration 1.01 The monthly graph above shows the...

Tradersweekly

Today, we would like to discuss two main things. The unemployment rate for November 2023 came in at 3.7%, which is really a surprise to see against a backdrop of high interest rates. However, some other trends might be worth mentioning. First, the broader unemployment indicator, the U-6 unemployment rate, fell to 7% last month from 7.2% in October 2023. Second,...

Tradersweekly

In the previous post about the SPX, we have been cautioning against potential reversal in the Chinese indices and subsequent implications for the U.S. stock market. Since then, we have seen Hang Seng Index drop about 5% and Shanghai Composite Index about 2%. While these declines are not yet doom and gloom, the situation is worth watching out for in the upcoming...

Tradersweekly

Bitcoin has been on an impressive winning streak for the past two months, seeing its market cap dominance rise more than 8%. Furthermore, today, it broke above $42,000, hitting values unseen since April 2022. While that is getting bulls drunk with greed, a few developments stand out to us. By now, probably many of you know that we have been tracking the number of...

Tradersweekly

Gold skyrocketed past $2,140 only a few minutes after the futures market opened. Unfortunately, however, the rally was not sustained, and shiny metal erased nearly all of its gains by the European morning; in fact, at some point, it traded as low as $2,057.89 per troy ounce. While the overnight price action was, once again, pretty impressive (and despite us loving...

Tradersweekly

After reporting earnings earlier last week, shares of NVIDIA have been struggling to march higher, and if you wonder how this is possible despite astounding results, here is some food for thought. The tech giant has experienced an unprecedented rally of more than 360% since October 2022, and it is no secret that the revolution in the AI sector has highly...

Tradersweekly

Tomorrow is a big day for Tesla, which plans to deliver its first Cybertruck vehicle to the customers. Introduced in 2019 by Elon Musk, the Cybertruck's journey from concept to reality has been eagerly watched by enthusiasts and skeptics alike. Initially slated for production in 2021, the Cybertruck will be the first pick-up truck vehicle added to Tesla’s lineup,...

Tradersweekly Updated 

The S&P 500 Index rose more than 11% in the past four weeks. While these gains are impressive, their compression into a short time window makes us somewhat uneasy. That is especially true when looking at other market developments, like stagnation in the Chinese stock market and the Volatility S&P 500 Index reaching extremely low levels last Friday (unseen since...