WhiskeyTangoFoxtrot3

WhiskeyTangoFoxtrot3

While a falling wedge is forming over the past few weeks, the UK was just granted an extension until October of this year ensuring that we are all continued to be bored to death by it until then. In all likelihood, there will be a general election before then and perhaps a new government controlled by Jeremy Corbyn. God knows what he'll do with this mess. At any...

WhiskeyTangoFoxtrot3

Although my sentiment for major equities and currencies is bearish (except DXY), it seems as though gold cannot maintain its edge and dropped below its rising channel that had formed since 2018. While its trying to regain its footing and get back within that channel, oscillators such as RSI and the stochastic are suggesting gold prices are overbought. Overall,...

WhiskeyTangoFoxtrot3

Still short on this pair in spite of the fact that ECB on top of things and Brexit longer extension in the works. Economic data still weak and still will probably continue to be weak.

WhiskeyTangoFoxtrot3

The EU has made it clear that they are no longer interested in shorter extensions. Therefore, its either no deal or a longer extension which could be many months to almost a year. If this is the case, I would expect a significant rise in this pair as it would significantly alleviate the risk of the UK leaving the EU at all. May never come to fruition and we would...

WhiskeyTangoFoxtrot3

The conversation on the Japanese yen is as much about the US economy as much as it is about the Japanese economy. This is mainly due to the fact that the Japanese yen acts as a safe haven asset during times of downward volatility, even if that volatility stems from Japan such as the natural and nuclear disasters that rocked the archipelago nation in 2011....

WhiskeyTangoFoxtrot3

If a move below 2870 begins and starts to gain momentum to the downside, then we will start to see a head and shoulders pattern form which is exactly the same type of pattern that formed in the SPX500 right before the 2008 Financial Crisis. Keep in mind though, its not the intrinsic nature of a head and shoulders pattern to cause a downward move, but rather what...

WhiskeyTangoFoxtrot3 Updated 

While I expect downward sloping resistance to be broken before upward sloping support, I think the general trend is lower.

WhiskeyTangoFoxtrot3

Two Fibonacci retracement levels come quite close to one another. The area around these double Fib levels have also acted as strong support dating all the way back into later 2018. Moreover, if price action retreats then we should probably see this same level act as support as it has been tested and retested several times. However, if price action moves to the...

WhiskeyTangoFoxtrot3

Basic textbook stuff. Symmetrial triangles tend to be continuation patterns. The trend in years prior was dollar strengthening. Although I do not believe the dollar would continue to strengthen from exogenous factors in the event of a major financial crisis or even a downturn, technical theory suggests that this pair should break to the upside of this symmetrical...

WhiskeyTangoFoxtrot3

Price action just cant quite get back into that really beautiful channel the CAC40 was running in the past three months. I expect once price action hits resistance that we'll see a bit of a pullback.

WhiskeyTangoFoxtrot3

The relationship between the Aussie dollar and the Chinese economy is well studied. Clearly, Aussie dollar is a strong proxy for Chinese growth where economic figures should always be looked upon with skepticism. Overall, if the Chinese economy cannot get going, traders will first see this trend in the Aussie dollar.

WhiskeyTangoFoxtrot3

By April 12th, price action will meet resistance. Other interesting technicals for intraday action. We opened with a strong gap to the downside only to finish the day .1 percent up. Typically, gap are filled whether intraday or interday. At any rate, rockets to the sky. Until gravity brings us back to earth of course.

WhiskeyTangoFoxtrot3

TAIEX enjoys a positive correlation coefficient with the Shanghai Composite which has strengthened consistently over the past few months. Then if we believe that a trade deal with the US is coming then the TAIEX will surely enjoy some gains as well even especially since TAIEX greatly outperforms Shanghai Composite and Shenzhen Component. However, TAIEX RSI is well...

WhiskeyTangoFoxtrot3

As a risk off safe haven asset, the Japanese yen tends to strengthen during times of volatility. A number of signals suggest this could be a turbulent week for markets. If that is the case, USDJPY short.

WhiskeyTangoFoxtrot3

BITFINEX:BTCUSD is clearly a more interesting asset recently with a 16 percent surge in just one trading day. Another asset that displays similar attributes is oil. Both should be considered risk-on investments given the beta or variance (assuming a normal distribution in an ordinary least square model) which both assets display. While oil gives us more insights...

WhiskeyTangoFoxtrot3

The S&P 500 is flirting with record highs again after a major correction last December which only missed becoming a bear market by a marginal amount ending just shy of down 20 percent. Going on to the 11th year in the bull market, investors should then take a look at where we could be and a few signals to determine where we are headed which can be found on Daily...

WhiskeyTangoFoxtrot3

Its not quite a great idea to invest in EM if one is expecting a downturn as EM will be significantly hit from drying up liquidity via outward capital flows and lower investment. Happened in 2008 with the liquidity crisis and again in 2011 with the EU sovereign debt crisis. We can see this relationship between developed markets and emerging markets through a...

WhiskeyTangoFoxtrot3

Macron convinced the Spanish and Belgians in supporting his stance on not allowing a long extension beyond April 12th, just five trading days away, without a meaningful signal by the UK Parliament in asserting what kind of deal they want to leave the EU. While Macron did suggest a short extension beyond the 12th, it is not clear when this would be. What is clear...