This is a classic bull market—smooth and trendy. However, it has become a cautious bull, moving within a much wider range, similar to what we observed after March. Especially in July and August: For the Nasdaq, it was down by 17%, but it has since recovered within a two-month period. Is this good or bad? It really depends on how we've positioned ourselves. If...
Lower inflation and interest rates do not necessarily mean that prices will decrease. If I annualize the inflation numbers instead of focusing on the monthly figures, the overall picture becomes much clearer. 2 and 10 Year Yield Futures Ticker: 2YY, 10Y Minimum fluctuation: 0.001 Index points (1/10th basis point per annum) = $1.00 Disclaimer: • ...
A lowering of U.S. interest rates may be necessary, but the downside risk is a weaker USD. And a significantly weaker dollar may cause inflation to creep back up again. Today, I will share a little hack on how to track and preempt the U.S. dollar’s direction. To conclude: Long-term - Down Mid-term - Range to a breaking point Currencies Futures and Options...
When the Bank of Japan hiked its interest rate at the end of July, global markets went into turbulence. We will discuss what currency carry trade is, why the yen carry trade has caused this global volatility, and, importantly, whether the market will resume its uptrend. Micro E-Mini Nasdaq Futures and Options Ticker: MNQ Minimum fluctuation: 0.25 index points...
What is moving lately? Tech stocks in Nasdaq and S&P are down, whereas traditional stocks in the Dow Jones and the smaller-cap stocks in the Russell are holding well. Micro E-Mini Russell Futures and Options Ticker: M2K Minimum fluctuation: 0.10 index points = $0.50 Disclaimer: • What presented here is not a recommendation, please consult your...
What is moving lately? The US unemployment rate has edged up. We can see from past cycles that when unemployment numbers started breaking above their downtrend, crisis occurred. Micro E-Mini Nasdaq Futures and Options Ticker: MNQ Minimum fluctuation: 0.25 index points = $0.50 Disclaimer: • What presented here is not a recommendation, please...
How will the market perform if either Biden or Trump wins? That should be an easy question to answer, as we can track the market performance on the first day each became President of the United States. Micro E-Mini Nasdaq Futures and Options Ticker: MNQ Minimum fluctuation: 0.25 index points = $0.50 Disclaimer: • What presented here is not a...
Why are US, UK, and EU bonds still crashing since March 2020? In this video, we are going to study the relationship between bonds, yields, and interest rates, which many of us find confusing. How can we understand them, and why are bond prices leading the yield, followed by interest rates this season? 10 Year Yield Futures Ticker: 10Y Minimum fluctuation: 0.001...
Today, I will share how I plan my trades for the second half of 2024. I am not trying to make any predictions here, as no one knows the exact day or hour. However, when a big move or turnaround begins, we will be able to recognize what is about to come. Micro E-mini Nasdaq Futures & Options Ticker: MNQ Minimum fluctuation: 0.25 index points =...
In today’s tutorial, we will track the potential prices of this important staple, wheat, which is used to make our bread. In these studies, we will use a combination of technical analysis and fundamental developments to support this view. Chicago SRW Wheat Futures & Options Ticker: ZW Minimum fluctuation: 1/4 of one cent (0.0025) per bushel =...
Is there still demand for gold by central banks around the world, and is gold heading for a correction? We will look into some data on the central banks' interest in this precious metal and discuss how to trade gold during this period. Micro Gold Futures & Options Ticker: MGC Minimum fluctuation: 0.10 per troy ounce = $1.00 Disclaimer: • What...
The stock market's reaction to an inflation trend always involves a delay. Based on studies of the inflation trend, this delay is approximately 6 months. How about the inflation data month by month? Micro E-Mini Nasdaq Ticker: MNQ Minimum fluctuation: 0.25 index points = $0.50 Disclaimer: • What presented here is not a recommendation, please...
For our housing loan, many of us, if you are in your 30s today and all the way to 70 years of age, will likely have chosen floating or short-term loan rates rather than longer-term loan rates. However, everything changed in 2022. Now, we are more likely to choose longer-term loan rates over floating rates. Why? Because today, longer-term loan rates are lower than...
All the major markets are testing their upper band channels since their first major hump in the 90s. The Russell 2000 has reached its second hump and is on the way down. Though the Russell 2000 is the least known among the four indices, it serves as a leading indicator for the other three. Why? The Russell 2000 comprises 2000 mid-sized listed companies, which...
The US long-term bonds have hit new lows, the yield curve has been inverted for two years now, and inflation remains uncertain, meaning interest rates may not ease at all. Yet, stock markets are reaching new highs. We have a "grey rhino" in this market. A grey rhino is a large and visible animal that cannot be ignored. Try not to get too close to them because...
Berkshire Hathaway, an investment company is not investing. What is the signal? Why are they hoarding cash? • Not much good investment opportunity ahead • Preparing for tougher time E-mini S&P 500 Futures & Options Ticker: ES Minimum fluctuation: 0.25 index points = $12.50 Micro E-mini S&P 500 Futures & Options Ticker: MES Minimum fluctuation: 0.25 index...
Inflation is expected to rise again because the prices of staples such as wheat, rice, corn, and soybean meal have been increasing over the last two months. Additionally, we've seen a 20% increase in soybean meal prices since the low in February. Chicago SRW Wheat Futures & Options Ticker: ZW Minimum fluctuation: 1/4 of one cent (0.0025) per bushel =...
The March CPI was reported at 3.5%, higher than expected on April 10. This development triggered a sharp decline in the stock market, with a total drop of 8.5% from the recent high. Could this downward movement signal the onset of a major bear market, or is this sell-off simply a retracement, setting the stage for the bull market to resume? We will explore this...