Whenever gold prices are trending higher, it hints at trouble ahead. Historically, silver always catches up later. During past crises, when this happens, this “silver shift” is very fast and furious. Its magnitude for silver is much greater than that of gold. Video discussion: 1. One key reason why silver is lagging behind for the time being 2. Why Gold and...
Many interpreted from the latest FOMC meeting that the Fed is going to have three rate cuts this year, but Jerome Powell did not say that. Let me quote directly from his transcript: “If the economy evolves as projected, the median participant projects that the appropriate level of the federal funds rate will be 4.6 percent at the end of this year” And he...
AI technology has been recognized as the new future since the end of 2022. The rapid advancements in AI and its stock prices sparked debates regarding the sustainability of its current valuations. Indeed, AI technology has a long runway ahead, but like all journeys, it will eventually encounter a bend. In today's tutorial, we are going to study its fundamental...
The relationship between inflation and Bitcoin - they moves in tandem together, in the same direction. We saw Bitcoin has broken above its 2021 high, and it is likely to continue this trend. Many attribute the reason behind this rally to the approval of Bitcoin ETF by SEC in January of this year. While this approval serves an incentive, the core reason for...
Inflation was only keenly felt, especially after the pandemic in April 2021, when the CPI broke above 2% to 4.15%, and then quickly soared to a high of 9% in June 2022. However, gold has been signaling impending inflation since the year 2000, which was 24 years ago. Currently, gold is also indicating further upside potential over the long term. What will be the...
While many of us celebrate the stock markets reaching new highs, central banks worldwide are actively purchasing gold, and institutions are hedging into treasuries and yields. Interest rates are determined by the central banks whereas Yields are determined by the investors. If you choose to lend or borrow money over a longer period, such as 10 or 30 years, you...
Today, we will discuss how to apply inter-market analysis effectively. While there are numerous analysis methods available, I find comparing the index, an influential stock, and a smaller yet actively traded stock to be effective in projecting what is coming ahead. Let's make some interesting observations in the tech market, focusing on the Nasdaq Index, the...
Just about 1.5 years ago, inflation reached the highest point in recent decades. The January inflation number for 2024 was released on February 13th. Its CPI has improved from 3.4% for December to 3.1%. However, the major US stock indices collapsed more than 1% on the same day. Why is there such nervousness surrounding improved inflation, and what are its...
At the latest FOMC meeting on January 31st, Jerome Powell stated, 'The Fed is not ready to start cutting,' which immediately caused the yield to pivot higher. During an recent interview on Sunday, February 4th, he reiterated that the US central bank is not yet prepared to cut interest rates, resulting in another increase in the yield. Today, we will discuss the...
In January alone, Microsoft, Google, Meta, and other tech companies have collectively cut more than 21,000 jobs. Furthermore, last year marked one of the worst periods in recent memory, with approximately 260,000 tech professionals losing their jobs. Normally, we expect to see cost-cutting measures during a contraction stage, as was the case during the Dot-com...
Whenever we see a divergence, this means they are going through a process of moving apart or deviating from what we are seeing. In this case the US markets, even though it appears to be trending higher, but its activities and especially its transacted volume are telling us otherwise. And what are their implications? My name is Kon How, my work in this channel,...
The recent development of the Red Sea crisis does not suggest that it is going to resolve anytime soon. Which markets have already started moving? And how far will they rise this time? We are going to recap the supply chain crisis during the pandemic and also delve into the current supply chain disruption caused by the Middle East conflict, which has led to the...
The first week of 2024 the US market opened around the high and closed around the low. It is very similar in 2022 and 2023. And what is the market telling us from the first week of 2024 and the direction for the rest of the year? We are going match the fundamental reason with this technical observation over the last two years. Also, what is the key...
If you ask anyone on the street, 'Do you think living expenses and food prices will be higher in a year or two from now?' 9 out of 10 will likely say 'Yes.' This means inflation is still a concern. Risk 1, U-turn in inflation. Risk 2, An expansion in geopolitical tension Risk 3, A delayed recession in 2024 Comex Gold Futures & Options Its Minimum...
During the December FOMC conference, the fed said the appropriate level for interest rate or the fed funds rate will be 4.6% at the end of 2024 from current 5.5%, 3.6% at the end of 2025, and 2.9% at the end of 2026. Many reporters take that as Fed’s hint to cut rate in 2024, but the Fed added saying these projections are not the committee decision or plan. So...
In 1930, when the Fed cut interest rates, the market crashed further. In today's tutorial, we will be comparing the 30s and today’s market to identify some of their similarities. Where exactly are interest rates’ direction pointing us? As we may have read, many analysts are forecasting that there will be a few rate cuts in 2024. Is this the best option? My work...
Global inflation often signifies a weakening of global currencies. The question of whether Bitcoin can serve as a hedge against a depreciating dollar has gained significant interest among investors. Or should it still be the Gold? In this study, we will analyse the top 8 cryptocurrencies to determine which one is a more reliable currency hedge. Bitcoin & Its...
Why has gold broken above the $2,000 level? And why is it likely to stay this way for a long time? This is because the USD has been weakening since October, and we can observe an inverse relationship between them during this period, as well as in previous periods. Micro Gold Futures & Its Minimum Fluctuation 0.10 per troy ounce = $1.00 Code: MGC Disclaimer: • ...