We have closed our short position manually in Asia session,as we noticed high volume and
RSI 78
The Market is in a longer term sideways mode,but for Day traders
currently good chance to participate of minor bullish trend
Here we are in a bullish market structure from 4H timeframe perspective,
so I am looking for longs from discount zone.
If price continues the retracement,
fills the imbalance lower and
then rejects from bullish order block.
Important is that the bearish retracement must have very low volume
Only in this case I would open a lon position,as closely as to my stop zone
to minimize the risk as low as possible
Mid Term is the Market now bullish
we got Bullish buy signal
as I usually trade on day TF and higher
what is more profitable ,but also more exposure.
A combination of DAY TF Bullish signal for Day traders:
The Daily TF is Bullish
The 4 H,2H and 30 Minutes must have Bullish setups
On the lower TF then we time the entry with our confirmation filters.
and Buy the retracement
Remember:
ALWAYS work with stops
Cuz everything can happen!Everything!
RSI 78
The Market is in a longer term sideways mode,but for Day traders
currently good chance to participate of minor bullish trend
Here we are in a bullish market structure from 4H timeframe perspective,
so I am looking for longs from discount zone.
If price continues the retracement,
fills the imbalance lower and
then rejects from bullish order block.
Important is that the bearish retracement must have very low volume
Only in this case I would open a lon position,as closely as to my stop zone
to minimize the risk as low as possible
Mid Term is the Market now bullish
we got Bullish buy signal
as I usually trade on day TF and higher
what is more profitable ,but also more exposure.
A combination of DAY TF Bullish signal for Day traders:
The Daily TF is Bullish
The 4 H,2H and 30 Minutes must have Bullish setups
On the lower TF then we time the entry with our confirmation filters.
and Buy the retracement
Remember:
ALWAYS work with stops
Cuz everything can happen!Everything!
Comment:
Stronger EUR/USD is bullish for all dollar-denominated precious metals including gold.
Comment:
strong close above suppot.For the 3rd time in row
Comment:
Bitcoin,EU and Gold lead
Nasaq follows.
Bullish
Nasaq follows.
Bullish
Comment:
MONDAY cANDLE WILL BE IMPOTANT
WE WILL HAVE POSSIBLE COECTION DOWNSIDETO 13200-12900 (untested weekly lows)
Be carefull of taking short tades cuz in the middle we will have a dangeouse choppy zone shortly before the market moves higher(Beartrap)
Suppot at 12887-12999 Trend bullish
etracement area to go long again
WE WILL HAVE POSSIBLE COECTION DOWNSIDETO 13200-12900 (untested weekly lows)
Be carefull of taking short tades cuz in the middle we will have a dangeouse choppy zone shortly before the market moves higher(Beartrap)
Suppot at 12887-12999 Trend bullish
etracement area to go long again
Comment:
target upsides 13775-13995
Comment:
US Stocks Rise Led by TechUnited States Stock Market
US stocks rose on Monday, with the Dow Jones up more than 50 points, and the S&P 500 and the Nasdaq up 0.4% and 0.6% respectively, as investors remained hopeful about a debt ceiling deal following successful staff-level negotiations over the weekend. President Joe Biden is expected to host top congressional leaders on Tuesday. Tech companies outperformed after European Union regulators approved Microsoft’s proposed $69 billion acquisition of gaming firm Activision Blizzard. Additionally, Atlanta Fed President Raphael Bostic and Chicago Fed economist Austan Goolsbee signaled their preference for pausing interest-rate increases, while Minneapolis Fed President Neel Kashkari suggested the central bank may have more work to do in its inflation fight. Meanwhile, the NY Empire State Manufacturing Index showed an unexpectedly big drop in manufacturing business activity this month.
US stocks rose on Monday, with the Dow Jones up more than 50 points, and the S&P 500 and the Nasdaq up 0.4% and 0.6% respectively, as investors remained hopeful about a debt ceiling deal following successful staff-level negotiations over the weekend. President Joe Biden is expected to host top congressional leaders on Tuesday. Tech companies outperformed after European Union regulators approved Microsoft’s proposed $69 billion acquisition of gaming firm Activision Blizzard. Additionally, Atlanta Fed President Raphael Bostic and Chicago Fed economist Austan Goolsbee signaled their preference for pausing interest-rate increases, while Minneapolis Fed President Neel Kashkari suggested the central bank may have more work to do in its inflation fight. Meanwhile, the NY Empire State Manufacturing Index showed an unexpectedly big drop in manufacturing business activity this month.
Comment:
US Stocks RiseUnited States Stock Market
US stocks were in the green on Wednesday, with the Dow Jones rising more than 180 points, the S&P 500 up 0.5% and the Nasdaq gaining 0.4% as traders continue to follow the debt ceiling standoff, corporate results and a rebound in regional bank shares. Congressional leaders said Tuesday's talks on the debt limit were productive, but they're still far from a deal and would continue to have meetings later this week. Meanwhile, shares of Western Alliance Bancorp surged more than 10% after the lender reported growth in deposits this quarter. Also, Tesla stocks were up almost 1% after Elon Musk said the company will start to advertise its cars. On the other hand, earnings and revenue from Target topped forecasts but the shares were falling 1.1% after warning of softening sales trend.
US stocks were in the green on Wednesday, with the Dow Jones rising more than 180 points, the S&P 500 up 0.5% and the Nasdaq gaining 0.4% as traders continue to follow the debt ceiling standoff, corporate results and a rebound in regional bank shares. Congressional leaders said Tuesday's talks on the debt limit were productive, but they're still far from a deal and would continue to have meetings later this week. Meanwhile, shares of Western Alliance Bancorp surged more than 10% after the lender reported growth in deposits this quarter. Also, Tesla stocks were up almost 1% after Elon Musk said the company will start to advertise its cars. On the other hand, earnings and revenue from Target topped forecasts but the shares were falling 1.1% after warning of softening sales trend.
Comment:
US Housing Starts Unexpectedly Rise
Housing starts in the US unexpectedly increased 2.2% month-over-month to a seasonally adjusted annualized rate of 1.401 million in April of 2023, compared to market forecasts of 1.4 million. Data for March was revised sharply lower to 1.37 million from 1.42 million, as high prices, interest rates, and tighter lending standards continue to weigh. Single-family housing starts, which account for the bulk of homebuilding, increased 1.6% to a four-month high of 846K and starts in buildings with five units or more surged by 5.2% to 542K. Starts rose in the West (34.6% to 315K) and the Midwest (32.6% to 171K) but fell in the Northeast (-23.4% to 131K) and the South (-6.3% to 784K).
Housing starts in the US unexpectedly increased 2.2% month-over-month to a seasonally adjusted annualized rate of 1.401 million in April of 2023, compared to market forecasts of 1.4 million. Data for March was revised sharply lower to 1.37 million from 1.42 million, as high prices, interest rates, and tighter lending standards continue to weigh. Single-family housing starts, which account for the bulk of homebuilding, increased 1.6% to a four-month high of 846K and starts in buildings with five units or more surged by 5.2% to 542K. Starts rose in the West (34.6% to 315K) and the Midwest (32.6% to 171K) but fell in the Northeast (-23.4% to 131K) and the South (-6.3% to 784K).
Comment:
The yield on the US 10-year Treasury note continued to march higher to top 3.6%, a level not seen in nearly two months, as investors follow the debt ceiling standoff and try to assess the Fed's next steps. Congressional lawmakers and President Biden expressed optimism on a deal and said the US will not default. At the same time, bets the Fed will cut rates this year fell and the chances of a pause in rate hikes in June also weakened. Dallas Federal Reserve President Lorie Logan said Thursday current economic data doesn't justify yet pausing the rate hiking-cycle. Retail sales data released this week showed consumer spending remained resilient and initial claims fell more than anticipated.
Comment:
US stock futures edged higher on Friday after the major averages gained during Thursday’s regular session, as easing concerns about the US debt ceiling crisis and upbeat corporate earnings results lifted market sentiment. Dow and S&P 500 futures rose about 0.1%, while Nasdaq 100 futures advanced 0.3%. In regular trading on Thursday, the S&P 500 climbed 0.94% and the Nasdaq Composite jumped 1.21%, with both benchmarks hitting their highest levels since August, while the Dow rose 0.34%. Seven out of the 11 S&P sectors finished higher, led to the upside by technology, communication services and consumer discretionary. Investors continued to monitor negotiations on the US debt ceiling, with House Speaker Kevin McCarthy suggesting a potential deal could come as soon as next week. Positive corporate updates from major firms also boosted sentiment, with Nvidia surging nearly 5% after announcing it joined ServiceNow to build AI for enterprises.
Comment:
This week:
s+p500
4193 to 4180 should be filled. I am looking bearish this week until sp500 goes to around 4160.
There I will be prepared for a buy, if volume sinks, and we have a bullish signal. The volume has to be increase, while the price gos up again.
If not so, it could mean, that important news, what the public does not know will arrive soon.In this case I willstay out.
If we have buy presure, the target will be 4180, we hold above it, we go then to 4223, and then 4277, cuz there no resistance
Nasdaq US100
Big LVN zone 13563-13606 and a single close at 13689 and 13750
I am expecting that coming down and correction.No! I want to have this correction, before US100 begins a big buy pressure at this level and rise higher.
My bullish target will be then 13952,13999,14218 and 14298
There we have nearly no resistances
In case US100 falls below 13606,
it nears of 13518 but latestly 13350. There are my next Bulls waiting to welcome the bears and support the strong Buy pressure.
Bitcoin.Possibly will come down to 2395 area before the Buying pressure begins.
It has to go above 27700. If we start sideways and the volume reducing, I will take the first Profits, and wait for a second ,but powerfull bullish run.
Then we had the pullback to 38,2 Fib which is a bullflag level,
We pushed then the high ,and higher highs which was wonderful
Gold: we had very strong impulse from 1618 to 1973
Then we had the pullback to 38,2 Fib which is a bullflag level,
We pushed then the high ,and higher highs which was wonderful
The profit taking on the Highs put back Gold in a correction mode,
I am expecting Gold will come down to 1900-1936 (62%Fib.) and then we attack 2150, and then 2212.5
Important is: Gold must Close this week above 1900-1920.
If it doesn´t and falls below this level, then we will see 1840 agin. It will be a ull trend, ,but it will need longer to climb higher.
If we close above 1920 this Friday, then possibly in the next 14 Days Gold will RISE HIGHER...
s+p500
4193 to 4180 should be filled. I am looking bearish this week until sp500 goes to around 4160.
There I will be prepared for a buy, if volume sinks, and we have a bullish signal. The volume has to be increase, while the price gos up again.
If not so, it could mean, that important news, what the public does not know will arrive soon.In this case I willstay out.
If we have buy presure, the target will be 4180, we hold above it, we go then to 4223, and then 4277, cuz there no resistance
Nasdaq US100
Big LVN zone 13563-13606 and a single close at 13689 and 13750
I am expecting that coming down and correction.No! I want to have this correction, before US100 begins a big buy pressure at this level and rise higher.
My bullish target will be then 13952,13999,14218 and 14298
There we have nearly no resistances
In case US100 falls below 13606,
it nears of 13518 but latestly 13350. There are my next Bulls waiting to welcome the bears and support the strong Buy pressure.
Bitcoin.Possibly will come down to 2395 area before the Buying pressure begins.
It has to go above 27700. If we start sideways and the volume reducing, I will take the first Profits, and wait for a second ,but powerfull bullish run.
Then we had the pullback to 38,2 Fib which is a bullflag level,
We pushed then the high ,and higher highs which was wonderful
Gold: we had very strong impulse from 1618 to 1973
Then we had the pullback to 38,2 Fib which is a bullflag level,
We pushed then the high ,and higher highs which was wonderful
The profit taking on the Highs put back Gold in a correction mode,
I am expecting Gold will come down to 1900-1936 (62%Fib.) and then we attack 2150, and then 2212.5
Important is: Gold must Close this week above 1900-1920.
If it doesn´t and falls below this level, then we will see 1840 agin. It will be a ull trend, ,but it will need longer to climb higher.
If we close above 1920 this Friday, then possibly in the next 14 Days Gold will RISE HIGHER...
Comment:
The dollar index steadied around 103.3 on Tuesday, supported by growing expectations that the Federal Reserve will keep interest rates higher for longer, while traders cautiously awaited updates from the debt ceiling negotiations. In the latest central bank commentary, Fed’s Bullard suggested the possibility of raising rates by another half-point this year, while Fed's Kashkari described the decision to pause or hike rates in June as a close call. Markets have scaled back bets on interest rate cuts this year, with rates seen holding at around 4.7% by December. Meanwhile, President Joe Biden and House Speaker Kevin McCarthy signaled cautious optimism that a deal to raise the debt ceiling would be reached, with Treasury Secretary Janet Yellen reaffirming that the US could be at risk of default by June 1.
Comment:
U.S. stock index futures are showing a positive trend on Wednesday morning, with the Dow Jones Industrial Average futures rising by 46 points (0.14% increase), S&P 500 futuresexperiencing a slight uptick of 0.16%, and Nasdaq 100 futures seeing a gain of 0.15%.
Traders are closely monitoring the ongoing debt-ceiling negotiations. And they are eagerly awaiting the release of the Federal Reserve’s May meeting minutes for insights into future monetary policy decisions.
Fed Presidents Warn of Rate Hikes
In addition, regional Fed Presidents James Bullard and Neel Kashkari have indicated that the U.S. central bank may need to continue raising rates if inflation remains high.
Overall, the stock market is influenced by ongoing debt-ceiling negotiations, earnings reports, and the anticipation of the Federal Reserve’s meeting minutes. The risk of a U.S. debt default and its potential consequences on economic growth and capital markets adds further uncertainty to the market environment.
Traders are closely monitoring the ongoing debt-ceiling negotiations. And they are eagerly awaiting the release of the Federal Reserve’s May meeting minutes for insights into future monetary policy decisions.
Fed Presidents Warn of Rate Hikes
In addition, regional Fed Presidents James Bullard and Neel Kashkari have indicated that the U.S. central bank may need to continue raising rates if inflation remains high.
Overall, the stock market is influenced by ongoing debt-ceiling negotiations, earnings reports, and the anticipation of the Federal Reserve’s meeting minutes. The risk of a U.S. debt default and its potential consequences on economic growth and capital markets adds further uncertainty to the market environment.
Comment:
The dollar has been trading a little firmer despite the impasse in US debt-ceiling negotiations. Bulls seem to be drawing strength from hawkish Fed speakers and technical forces. Prices have turned bullish on the daily charts with support found at 103.00. The upside momentum has already taken prices towards 103.80 with 104.00 the next key level of interest.
Comment:
Selling Pressure,Weakenning of UsDollar, thats good for Euro. Strong Euro is GOOD,no VERY GOOD for SP500;NASDAQ;DOW JONES; GOLD;BITCOIN;CRYPTOS: Everything against Dollar.
Look also my NVIDIA Forecast Chart performed: Nailed it! Weak US DOllar also good for Tech Stocks, Bio Pharma and Tech have Highly positive correltions with Bitcoin and Ethereum, and vice versa. NVIDIA : Top Performer
Friday is the Big Day of the Week: aND IT WILL BE VERY BUISY. RGHT AFTER THE bELL PMI and Inflation DATA!
Look also my NVIDIA Forecast Chart performed: Nailed it! Weak US DOllar also good for Tech Stocks, Bio Pharma and Tech have Highly positive correltions with Bitcoin and Ethereum, and vice versa. NVIDIA : Top Performer
Friday is the Big Day of the Week: aND IT WILL BE VERY BUISY. RGHT AFTER THE bELL PMI and Inflation DATA!
Comment:
Market UpDATES:
NASDQ100 US100 and Indices Sky Rocketing after FED pivot reates cooling
Nasdaq breaking 14055 easily as forecasted in my analysis : Next Target 14350
NVIDAI Sky ROCKETING(Watch als my other Forecasts USD/US100/USDJPY/GOLD/EURO- Related Markets)
Godl Found More Buyers on support.More Bullish Delat coming in nEXT TO 2000USD)
Medium-term price action on the daily chart exhibits scope to extend losses. The longer-term ascending channel is interesting (drawn from $1,641 and $1,959). Note that price action FAILED to touch gloves with the upper boundary in recent trading, pencilling in highs just ahead of the all-time high of $2,075.
Investment Sentiment rising higher from Lows:More Bulls
The Key Fed Inflation Rate Is Cooling At Pivotal Time For The S&P 500
EURO/USD Taking Profits +More Bulls Accumulation and Buying Pressure /Support 1,4075
NASDQ100 US100 and Indices Sky Rocketing after FED pivot reates cooling
Nasdaq breaking 14055 easily as forecasted in my analysis : Next Target 14350
NVIDAI Sky ROCKETING(Watch als my other Forecasts USD/US100/USDJPY/GOLD/EURO- Related Markets)
Godl Found More Buyers on support.More Bullish Delat coming in nEXT TO 2000USD)
Medium-term price action on the daily chart exhibits scope to extend losses. The longer-term ascending channel is interesting (drawn from $1,641 and $1,959). Note that price action FAILED to touch gloves with the upper boundary in recent trading, pencilling in highs just ahead of the all-time high of $2,075.
Investment Sentiment rising higher from Lows:More Bulls
The Key Fed Inflation Rate Is Cooling At Pivotal Time For The S&P 500
EURO/USD Taking Profits +More Bulls Accumulation and Buying Pressure /Support 1,4075
Comment:
opened above Monthly open.Trend bullish
Comment:
Markets steady ahead of final push on the debt deal
After long weekends in many parts of the world, FX markets are returning to some progress on the US debt ceiling. President Joe Biden and House Speaker Kevin McCarthy have reached a two-year deal. That deal will be assessed by the House Rules Committee today and, if approved, will likely go to a vote in the House tomorrow. Both Democrat and Republican leaders feel they have the votes to get the deal through Congress – although at times like these, there may be a few holdout politicians who like their day in the sun.
After long weekends in many parts of the world, FX markets are returning to some progress on the US debt ceiling. President Joe Biden and House Speaker Kevin McCarthy have reached a two-year deal. That deal will be assessed by the House Rules Committee today and, if approved, will likely go to a vote in the House tomorrow. Both Democrat and Republican leaders feel they have the votes to get the deal through Congress – although at times like these, there may be a few holdout politicians who like their day in the sun.
Comment:
US100
long bullish
5min divergence long
5min. short DXY rips nasdaq bitcoin gold euro and co bullish
Unemployment 261K
long bullish
5min divergence long
5min. short DXY rips nasdaq bitcoin gold euro and co bullish
Unemployment 261K
Comment:
GOLD STRONG BUY , short term correction coming soon
Comment:
US Stocks Rise Ahead Inflation, Fed
The Dow Jones rose 20 points on Monday, the S&P 500 was up 0.3% and the Nasdaq 0.4% as investors are hopeful that inflationary pressures would show further signs of easing, supporting the case for a pause in the Fed’s interest rate hikes this week. The US inflation rate is forecasted to fall 4.1% in May, the lowest since March 2021, from 4.9% in April while the core gauge may decelerate to 5.2% from 5.5%. Most market participants expect the US central bank to leave interest rates unchanged at the current levels but there is a 30% chance of a rate hike depending on the CPI reading and after surprise moves in Australia and Canada last week. Among single stocks, Nasdaq tumbled 10% after the exchange operator said it agreed to acquire Adenza. Oracle was up nearly 4% ahead of earnings results after the market close
Crude Short oil make another bearish attempt
SHORT
BITCOIN WILL RISE HIGHER
LONG
Bank of Japan's Dovish Line Pushes Yen Down
LONG
GOLD STRONG BUY , short term correction coming soon
LONG
USD/CAD continues to move higher amid a broad sell-off in commod
LONG
USDCHF BEARISH Meets monthly Low and Support
SHORT
US100 Long U.S. Debt Deal Optimism Boosts Sentiment
LONG
The Dow Jones rose 20 points on Monday, the S&P 500 was up 0.3% and the Nasdaq 0.4% as investors are hopeful that inflationary pressures would show further signs of easing, supporting the case for a pause in the Fed’s interest rate hikes this week. The US inflation rate is forecasted to fall 4.1% in May, the lowest since March 2021, from 4.9% in April while the core gauge may decelerate to 5.2% from 5.5%. Most market participants expect the US central bank to leave interest rates unchanged at the current levels but there is a 30% chance of a rate hike depending on the CPI reading and after surprise moves in Australia and Canada last week. Among single stocks, Nasdaq tumbled 10% after the exchange operator said it agreed to acquire Adenza. Oracle was up nearly 4% ahead of earnings results after the market close
Crude Short oil make another bearish attempt
SHORT
BITCOIN WILL RISE HIGHER
LONG
Bank of Japan's Dovish Line Pushes Yen Down
LONG
GOLD STRONG BUY , short term correction coming soon
LONG
USD/CAD continues to move higher amid a broad sell-off in commod
LONG
USDCHF BEARISH Meets monthly Low and Support
SHORT
US100 Long U.S. Debt Deal Optimism Boosts Sentiment
LONG
Comment:
CURRENCYCOM:US100 long
nasdaq100 us100 we go to 15200 where the profit taking and reveras begins US100 Long Rises Higher to 15200zone,the possible correction
nasdaq100 us100 we go to 15200 where the profit taking and reveras begins US100 Long Rises Higher to 15200zone,the possible correction
Comment:
US Dollar Index: DXY fades recovery below 104.00 on downbeat Fed bets, US inflation eyed
US Dollar Index struggles to extend the previous day’s corrective bounce off three-week low, snaps two-day winning streak.
Markets remain nearly sure of witnessing no rate hike from Fed in June but concerns about July stay dicey.
Bond market moves, challenges to sentiment prod DXY bears ahead of the key US CPI.
Core CPI will be closely observed as high inflation can allow FOMC to remain hawkish despite no rate hike decision.
US Dollar Index (DXY) remains pressured around 103.60 as it fades the previous two-day winning streak on Tuesday as the key US inflation data looms. That said, the greenback’s gauge versus the six major currencies rose in the last two consecutive days amid the market’s positioning for the Federal Reserve’s (Fed) pause to the rate hike trajectory. However, the recently mixed concerns about the US central bank’s future moves join the challenges to the sentiment to prod the DXY buyers ahead of an important data point for the markets.
It’s worth noting that a study from the San Francisco Fed about the correlation between wage growth and inflation could be cited as the reason for the US central bank to remain less hawkish, which in turn weighs on the DXY, apart from the pre-data anxiety. The survey concluded that wage growth has a very small impact on inflation, which in turn raises doubts about the central bankers’ emphasis on wage cost numbers as a source of information to gauge inflation pressure.
Talking about the latest challenges to sentiment, a trade dispute is developing after the US expands its ban on imports from Xinjiang. China vows to protect China firms against any US sanctions, per Reuters. Recently, Bloomberg released prepared remarks of US Treasury Secretary Janet Yellen’s scheduled Testimony in front of the House Financial Services Committee as she said that the International Monetary Fund (IMF) and the World Bank (WB) serve as important counterweights to nontransparent, unsustainable lending from others, like China.
Additionally, the increase in the bets favoring the Federal Reserve’s (Fed) 0.25% rate hike in July also prod optimism and put a floor under the US Dollar Index. It should be noted that the CME’s FedWatch Tool suggests nearly limited scope for the US central bank to act on Wednesday’s Federal Open Market Committee (FOMC).
Looking ahead, the US Consumer Price Index (CPI) figures for May will be in the spotlight as the Fed decision looms on Wednesday. That said, the market forecasts of witnessing no change in the Core CPI MoM figure of 0.4% gain major attention as softer figures could push back the July rate hike concerns and may not allow the Fed to sound hawkish, which in turn can drown the US Dollar.
US Dollar Index struggles to extend the previous day’s corrective bounce off three-week low, snaps two-day winning streak.
Markets remain nearly sure of witnessing no rate hike from Fed in June but concerns about July stay dicey.
Bond market moves, challenges to sentiment prod DXY bears ahead of the key US CPI.
Core CPI will be closely observed as high inflation can allow FOMC to remain hawkish despite no rate hike decision.
US Dollar Index (DXY) remains pressured around 103.60 as it fades the previous two-day winning streak on Tuesday as the key US inflation data looms. That said, the greenback’s gauge versus the six major currencies rose in the last two consecutive days amid the market’s positioning for the Federal Reserve’s (Fed) pause to the rate hike trajectory. However, the recently mixed concerns about the US central bank’s future moves join the challenges to the sentiment to prod the DXY buyers ahead of an important data point for the markets.
It’s worth noting that a study from the San Francisco Fed about the correlation between wage growth and inflation could be cited as the reason for the US central bank to remain less hawkish, which in turn weighs on the DXY, apart from the pre-data anxiety. The survey concluded that wage growth has a very small impact on inflation, which in turn raises doubts about the central bankers’ emphasis on wage cost numbers as a source of information to gauge inflation pressure.
Talking about the latest challenges to sentiment, a trade dispute is developing after the US expands its ban on imports from Xinjiang. China vows to protect China firms against any US sanctions, per Reuters. Recently, Bloomberg released prepared remarks of US Treasury Secretary Janet Yellen’s scheduled Testimony in front of the House Financial Services Committee as she said that the International Monetary Fund (IMF) and the World Bank (WB) serve as important counterweights to nontransparent, unsustainable lending from others, like China.
Additionally, the increase in the bets favoring the Federal Reserve’s (Fed) 0.25% rate hike in July also prod optimism and put a floor under the US Dollar Index. It should be noted that the CME’s FedWatch Tool suggests nearly limited scope for the US central bank to act on Wednesday’s Federal Open Market Committee (FOMC).
Looking ahead, the US Consumer Price Index (CPI) figures for May will be in the spotlight as the Fed decision looms on Wednesday. That said, the market forecasts of witnessing no change in the Core CPI MoM figure of 0.4% gain major attention as softer figures could push back the July rate hike concerns and may not allow the Fed to sound hawkish, which in turn can drown the US Dollar.
Comment:
European equity markets were set for a positive open on Friday, tracking global peers higher amid bets that US interest rates could be nearing their peak as the American economy loses momentum and after the Federal Reserve paused its tightening campaign in June. Meanwhile, the European Central Bank opted to raise interest rates by another 25 basis points, with ECB President Christine Lagarde saying ‘we are not thinking about pausing.” Investors now look ahead to final euro zone inflation figures and wage growth data for further clues on the economy and future monetary policy. DAX futures jumped 0.9%, Stoxx 600 futures gained 0.5% and FTSE 100 futures edged up 0.2% in premarket trade.
Comment:
The Dow finished more than 100 points below the flatline on Friday, the S&P 500 and the Nasdaq lost nearly 0.4% and 0.7%, respectively, as investors continued to assess the outlook of monetary policy for the Fed amid a massive options expiration at the second 2023’s quadruple witching date. Among stocks, Microsoft fell 1.7% and Micron Technology dropped 1.7%. Conversely, Virgin Galactic surged 16.3% on plans for commercial space tourism. Tesla added 1.8% after hitting a 37-week high during the session and Adobe gained 0.8% with positive earnings and guidance. On the week, the Dow Jones added 0.9%, marking a three-week winning streak despite the Fed's warning of future rate hikes. The S&P 500 gained 2.2%, its fifth consecutive weekly gain, the longest since November 2021, rising 2.2%. The Nasdaq was up 2.7% for an eighth straight positive week. Markets will be closed on Monday for the Juneteenth holiday.
Comment:
BTC Bears Target Sub-$26,000 on SEC v Binance and Ripple Battles
BTC was flat this morning, with regulatory uncertainty stemming from the SEC lawsuits against Ripple, Binance, and Coinbase testing buyer appetite.
The market structure and momentum of Bitcoin was bearish, but its bounce back above $26k gave bears some food for thought.
Bitcoin’s correlation with the S&P 500 turned negative over May. This meant that the index has an overall bullish outlook, but Bitcoin has trended in the opposite direction in recent weeks. The increasing hostility from regulatory bodies in the United States has played a part in BTC’s misfortunes on the price chart.
There was an argument to be made that Bitcoin showed some signs of recovery. Yet, an analysis of the price action showed that the bias remained in favor of the sellers. On the other hand, if Bitcoin climbs to $28k, it could signal an uptrend.
Can the bulls drive Bitcoin past $27.4k next?
The market structure of Bitcoin on the daily timeframe was bearish. The structure shifted on 21 April when BTC dipped below a recent higher low. Since then, the price has trended lower on the chart.
Moreover, the trading volume has been extremely low from April onward, compared to the volume seen in February and March. This was reflected on the OBV as well, which only went slightly lower in May in contrast to the rapid gains it posted in mid-March.
The Fibonacci levels based on the recent leg down show that Bitcoin was likely headed toward $24.8k. The 61.8% extension level at $23.3k was also a target it presented. The price action showed that the $24.2k-$24.4k region could serve as strong support. Beneath that, the $22.4k and $21.5k levels were important.
To signal a bullish shift in the structure, Bitcoin prices must rise back above the recent lower high at $27.4k. Yet, an uptrend would not be established there, as BTC would need to form a higher low and continue higher. Cautious investors can wait for this turn of events before looking to buy.
On Saturday, BTC extended the winning streak to three sessions, gaining 0.67% to end the day at $26,535.
SEC v Binance news delivered a breakout morning session before profit-taking left BTC with modest gains.
The technical indicators turned bullish, signaling a return to $27,000.
On Saturday, bitcoin (BTC) gained 0.67%. Following a 2.92% rally on Friday, BTC ended the day at $26,535. Significantly, BTC enjoyed its first three-day winning streak since May.
A mixed start to the day saw BTC fall to an early afternoon low of $26,202. Steering clear of the First Major Support Level (S1) at $25,523, BTC rose to a late morning high of $26,857. However, falling short of the First Major Resistance Level (R1) at $26,882, BTC eased back to sub-$26,500 and a range-bound afternoon session.
SEC v Binance News Delivered Brief Relief
On Saturday, news of Binance striking a deal to address the SEC’s motion to freeze Binance US assets supported a breakout morning.
Binance, Binance US, and the SEC agreed on a deal restricting access to customer funds to Binance US employees. The agreement prevents Binance Holdings staff from having access to private keys for US wallets.
The SEC filed a motion to freeze the assets of Binance US shortly after filing charges against Binance, Binance US, and Binance CEO CZ.
On Saturday, the US Court signed off on the deal, which allows Binance to repatriate all US customer funds and private keys onshore to nullify the motion to freeze.
While the news was positive, Binance US and Binance face charges that could drag on and further impact the US digital asset space.
Uncertainty toward the SEC v Ripple case remains another headwind, with optimism of a Ripple win fading after the release of the Hinman speech-related docs.
The Day Ahead
It is a quiet Sunday session, with no US economic indicators to provide direction. The lack of external market forces will leave BTC in the hands of the crypto market news wires.
SEC activity remains the focal point, with SEC v Ripple, Binance, and Coinbase (COIN)-related news likely to move the dial.
We also expect market sensitivity to lawmaker chatter. US lawmakers have remained silent on the William Hinman speech-related documents and the SEC charges against Binance and Coinbase.
Bitcoin (BTC) Price Action
This morning, BTC was down 0.05% to $26,523. A mixed start to the day saw BTC rise to an early high of $26,551 before falling to a low of $26,410.
BTC Technical Indicators
Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 100-day EMA ($26,269). The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, sending bullish signals.
A move through the 200-day EMA ($26,654) would support a breakout from R1 ($26,861) to target R2 ($27,186). However, a fall through the 100-day EMA ($26,269) and S1 ($26,206) would bring the 50-day EMA ($26,059) into view. A fall through the 50-day EMA would send a bearish signal.
Resistance & Support Levels
R1 – $ 26,861 S1 – $ 26,206
R2 – $ 27,186 S2 – $ 25,876
R3 – $ 27,841 S3 – $ 25,221
BTC needs to move through the $26,531 pivot to target the First Major Resistance Level (R1) at $26,861 and $27,500. A move through the Saturday high of $26,857 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,186 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,841.
Failure to move through the pivot would leave the First Major Support Level (S1) at $26,206 in play. However, barring a risk-off-fueled sell-off, BTC should avoid sub-$26,000 and the Second Major Support Level (S2) at $25,876. The Third Major Support Level (S3) sits at $25,221.
BTC was flat this morning, with regulatory uncertainty stemming from the SEC lawsuits against Ripple, Binance, and Coinbase testing buyer appetite.
The market structure and momentum of Bitcoin was bearish, but its bounce back above $26k gave bears some food for thought.
Bitcoin’s correlation with the S&P 500 turned negative over May. This meant that the index has an overall bullish outlook, but Bitcoin has trended in the opposite direction in recent weeks. The increasing hostility from regulatory bodies in the United States has played a part in BTC’s misfortunes on the price chart.
There was an argument to be made that Bitcoin showed some signs of recovery. Yet, an analysis of the price action showed that the bias remained in favor of the sellers. On the other hand, if Bitcoin climbs to $28k, it could signal an uptrend.
Can the bulls drive Bitcoin past $27.4k next?
The market structure of Bitcoin on the daily timeframe was bearish. The structure shifted on 21 April when BTC dipped below a recent higher low. Since then, the price has trended lower on the chart.
Moreover, the trading volume has been extremely low from April onward, compared to the volume seen in February and March. This was reflected on the OBV as well, which only went slightly lower in May in contrast to the rapid gains it posted in mid-March.
The Fibonacci levels based on the recent leg down show that Bitcoin was likely headed toward $24.8k. The 61.8% extension level at $23.3k was also a target it presented. The price action showed that the $24.2k-$24.4k region could serve as strong support. Beneath that, the $22.4k and $21.5k levels were important.
To signal a bullish shift in the structure, Bitcoin prices must rise back above the recent lower high at $27.4k. Yet, an uptrend would not be established there, as BTC would need to form a higher low and continue higher. Cautious investors can wait for this turn of events before looking to buy.
On Saturday, BTC extended the winning streak to three sessions, gaining 0.67% to end the day at $26,535.
SEC v Binance news delivered a breakout morning session before profit-taking left BTC with modest gains.
The technical indicators turned bullish, signaling a return to $27,000.
On Saturday, bitcoin (BTC) gained 0.67%. Following a 2.92% rally on Friday, BTC ended the day at $26,535. Significantly, BTC enjoyed its first three-day winning streak since May.
A mixed start to the day saw BTC fall to an early afternoon low of $26,202. Steering clear of the First Major Support Level (S1) at $25,523, BTC rose to a late morning high of $26,857. However, falling short of the First Major Resistance Level (R1) at $26,882, BTC eased back to sub-$26,500 and a range-bound afternoon session.
SEC v Binance News Delivered Brief Relief
On Saturday, news of Binance striking a deal to address the SEC’s motion to freeze Binance US assets supported a breakout morning.
Binance, Binance US, and the SEC agreed on a deal restricting access to customer funds to Binance US employees. The agreement prevents Binance Holdings staff from having access to private keys for US wallets.
The SEC filed a motion to freeze the assets of Binance US shortly after filing charges against Binance, Binance US, and Binance CEO CZ.
On Saturday, the US Court signed off on the deal, which allows Binance to repatriate all US customer funds and private keys onshore to nullify the motion to freeze.
While the news was positive, Binance US and Binance face charges that could drag on and further impact the US digital asset space.
Uncertainty toward the SEC v Ripple case remains another headwind, with optimism of a Ripple win fading after the release of the Hinman speech-related docs.
The Day Ahead
It is a quiet Sunday session, with no US economic indicators to provide direction. The lack of external market forces will leave BTC in the hands of the crypto market news wires.
SEC activity remains the focal point, with SEC v Ripple, Binance, and Coinbase (COIN)-related news likely to move the dial.
We also expect market sensitivity to lawmaker chatter. US lawmakers have remained silent on the William Hinman speech-related documents and the SEC charges against Binance and Coinbase.
Bitcoin (BTC) Price Action
This morning, BTC was down 0.05% to $26,523. A mixed start to the day saw BTC rise to an early high of $26,551 before falling to a low of $26,410.
BTC Technical Indicators
Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs sent bullish signals. BTC sat above the 100-day EMA ($26,269). The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, sending bullish signals.
A move through the 200-day EMA ($26,654) would support a breakout from R1 ($26,861) to target R2 ($27,186). However, a fall through the 100-day EMA ($26,269) and S1 ($26,206) would bring the 50-day EMA ($26,059) into view. A fall through the 50-day EMA would send a bearish signal.
Resistance & Support Levels
R1 – $ 26,861 S1 – $ 26,206
R2 – $ 27,186 S2 – $ 25,876
R3 – $ 27,841 S3 – $ 25,221
BTC needs to move through the $26,531 pivot to target the First Major Resistance Level (R1) at $26,861 and $27,500. A move through the Saturday high of $26,857 would signal an extended bullish session. The crypto news wires should be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,186 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,841.
Failure to move through the pivot would leave the First Major Support Level (S1) at $26,206 in play. However, barring a risk-off-fueled sell-off, BTC should avoid sub-$26,000 and the Second Major Support Level (S2) at $25,876. The Third Major Support Level (S3) sits at $25,221.
Comment:
Fed Chair. Powell reiterated at the ECB Forum on Central Banking that interest rates will rise further and that he wouldn’t take moving in consecutive meetings off the table at all, but noted that a recession in the US is not the most likely case. Nvidia was down by over 2% and Advanced Micro Devices by 1% after the Wall Street Journal reported that the US government is considering new restrictions on exports of artificial intelligence chips to China. The Fed is also due to release the results of its annual stress tests to banks, and more details on Basel III Endgame and changes to bank supervision will be in the spotlight.
The Dow Jones was down over 100 points and the S&P 500 dipped by 0.1% on Wednesday afternoon, on the prospect of further interest rate hikes following the Federal Reserve's chair Powell Speech at the ECB Forum. He said he does not see inflation reaching the Fed's 2% target any time soon. He reiterated that interest rates will rise further and did not rule out a boost in the cost of borrowing at the next policy meeting scheduled for the end of July. Meantime, the Nasdaq was up 0.2% powered by megacap momentum stocks. Among stocks, shares of Nvidia and Advanced Micro Devices were down by 2% and 1%, respectively, after the US government is considering new restrictions on exports of AI chips to China. Intel, Applied Materials and Qualcomm fell more than 2% each. On the other hand, Apple hit an all-time high of $189.8 during the session, while shares of Tesla and Alphabet advanced 1.4% and 2.5%. The Fed is due to release the results of its annual stress tests to banks.
The Dow Jones was down over 100 points and the S&P 500 dipped by 0.1% on Wednesday afternoon, on the prospect of further interest rate hikes following the Federal Reserve's chair Powell Speech at the ECB Forum. He said he does not see inflation reaching the Fed's 2% target any time soon. He reiterated that interest rates will rise further and did not rule out a boost in the cost of borrowing at the next policy meeting scheduled for the end of July. Meantime, the Nasdaq was up 0.2% powered by megacap momentum stocks. Among stocks, shares of Nvidia and Advanced Micro Devices were down by 2% and 1%, respectively, after the US government is considering new restrictions on exports of AI chips to China. Intel, Applied Materials and Qualcomm fell more than 2% each. On the other hand, Apple hit an all-time high of $189.8 during the session, while shares of Tesla and Alphabet advanced 1.4% and 2.5%. The Fed is due to release the results of its annual stress tests to banks.
Comment:
The US economy grew by an annualized 2% on quarter in Q1 2023, well above 1.3% in the second estimate, and forecasts of 1.4%. The updated estimates primarily reflected upward revisions to exports and consumer spending that were partly offset by downward revisions to nonresidential fixed investment and federal government spending. Imports were revised down.
Comment:
TREND BLLISH
PROFIT TAKINGS AND MORE ACCUMULATIONS
US Mortgage Rates Rise to 8-Month HighUnited States 30 Year Mortgage Rate
The average rate on a 30-year fixed mortgage increased by 10 basis points from the previous week to 6.81% in the week ending July 6th, the highest November 2022 as higher interest from the Federal Reserve underpinned expensive mortgage rates for American consumers. A year ago, the 30-year fixed mortgage rate was at 5.3%. “Mortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,” said Sam Khater, Freddie Mac’s Chief Economist. “This upward trend is being driven by a resilient economy, persistent inflation and a more hawkish tone from the Federal Reserve. These high rates combined with low inventory continue to price many potential homebuyers out of the market.”
PROFIT TAKINGS AND MORE ACCUMULATIONS
US Mortgage Rates Rise to 8-Month HighUnited States 30 Year Mortgage Rate
The average rate on a 30-year fixed mortgage increased by 10 basis points from the previous week to 6.81% in the week ending July 6th, the highest November 2022 as higher interest from the Federal Reserve underpinned expensive mortgage rates for American consumers. A year ago, the 30-year fixed mortgage rate was at 5.3%. “Mortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,” said Sam Khater, Freddie Mac’s Chief Economist. “This upward trend is being driven by a resilient economy, persistent inflation and a more hawkish tone from the Federal Reserve. These high rates combined with low inventory continue to price many potential homebuyers out of the market.”
Comment:
Wall Street Ends in the Green
The Dow Jones closed more than 209 points higher on Monday, while the S&P 500 and the Nasdaq added 0.2% each, as investors awaited the US consumer and producer inflation reports later this week and braced for the start of the second quarter earnings season. The upcoming inflation report is expected to offer additional evidence regarding inflationary pressures and provide insights into the Federal Reserve's future actions. Traders are currently pricing in a nearly 92% chance for a 25bps increase in the fed funds rate this month, but the odds for another quarter point hike later in the year have been swinging, currently standing at 22% for September and 33% for November. Healthcare shares were among top performers of the session including Amgen (+2.5%). Also, Inter (+2.8%), Honeywell (+2.2%) and Home Depot (2.5%) outperformed while mega cap shares dragged as Apple (-1.1%), Tesla (-1.7%), Microsoft (-1.6%), Alphabet (-2.5%) and Amazon (-2%) ended in the red.
The Dow Jones closed more than 209 points higher on Monday, while the S&P 500 and the Nasdaq added 0.2% each, as investors awaited the US consumer and producer inflation reports later this week and braced for the start of the second quarter earnings season. The upcoming inflation report is expected to offer additional evidence regarding inflationary pressures and provide insights into the Federal Reserve's future actions. Traders are currently pricing in a nearly 92% chance for a 25bps increase in the fed funds rate this month, but the odds for another quarter point hike later in the year have been swinging, currently standing at 22% for September and 33% for November. Healthcare shares were among top performers of the session including Amgen (+2.5%). Also, Inter (+2.8%), Honeywell (+2.2%) and Home Depot (2.5%) outperformed while mega cap shares dragged as Apple (-1.1%), Tesla (-1.7%), Microsoft (-1.6%), Alphabet (-2.5%) and Amazon (-2%) ended in the red.
Comment:
US 10-Year Treasury Yield Down for 2nd Session
The yield on the US 10-year Treasury note fell below 4%, retreating for the second consecutive session after hitting its highest since November 2022 at almost 4.1% as investors turned cautious ahead of key economic data that could influence the Federal Reserve’s next interest rate policy moves. The CPI report on Wednesday is expected to show headline annual inflation fell to 3.1% in June from 4% in the previous month, while the core index probably decreased to 5% from 5.3%. Markets are now pricing in a 94.9% chance of rates being hiked again during the central bank’s upcoming meeting on July 25-26 but uncertainty remains for the other three Fed meetings scheduled for later in the year. In the latest Fed commentary, Fed President Mary Daly said that she expects two further rate hikes to be announced this year to lower inflation, in line with early comments from Fed Chairman Jerome Powell.
Americans Become More Pessimistic in July
The IBD/TIPP Economic Optimism Index in the US unexpectedly fell to 41.3 in July 2023, the lowest since November last year, compared to 41.7 in June and market forecasts of 45.3. It also marks a 23rd month the reading stands below 50, indicating Americans remain pessimistic. “The economy continues to be the number one issue for Americans as we prepare for earnings season and new inflation data. The Six-Month Economic Outlook was the lone bright spot for July, as optimism slightly increased for the long-term, but it’s still a long way from positive. Expect some more twists and turns before consumers trust that the economy has stabilized”, said Ed Carson, IBD's news editor. The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, fell to 50 from 51.9 and the gauge for Confidence in Federal Economic Policies edged lower to 38.5 from 38.6. On the other hand, the Six-Month Economic Outlook rose to 35.5 from 34.5.
The yield on the US 10-year Treasury note fell below 4%, retreating for the second consecutive session after hitting its highest since November 2022 at almost 4.1% as investors turned cautious ahead of key economic data that could influence the Federal Reserve’s next interest rate policy moves. The CPI report on Wednesday is expected to show headline annual inflation fell to 3.1% in June from 4% in the previous month, while the core index probably decreased to 5% from 5.3%. Markets are now pricing in a 94.9% chance of rates being hiked again during the central bank’s upcoming meeting on July 25-26 but uncertainty remains for the other three Fed meetings scheduled for later in the year. In the latest Fed commentary, Fed President Mary Daly said that she expects two further rate hikes to be announced this year to lower inflation, in line with early comments from Fed Chairman Jerome Powell.
Americans Become More Pessimistic in July
The IBD/TIPP Economic Optimism Index in the US unexpectedly fell to 41.3 in July 2023, the lowest since November last year, compared to 41.7 in June and market forecasts of 45.3. It also marks a 23rd month the reading stands below 50, indicating Americans remain pessimistic. “The economy continues to be the number one issue for Americans as we prepare for earnings season and new inflation data. The Six-Month Economic Outlook was the lone bright spot for July, as optimism slightly increased for the long-term, but it’s still a long way from positive. Expect some more twists and turns before consumers trust that the economy has stabilized”, said Ed Carson, IBD's news editor. The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, fell to 50 from 51.9 and the gauge for Confidence in Federal Economic Policies edged lower to 38.5 from 38.6. On the other hand, the Six-Month Economic Outlook rose to 35.5 from 34.5.
Comment:
US 10-Year Treasury Yield Down for 2nd Session
The yield on the US 10-year Treasury note fell below 4%, retreating for the second consecutive session after hitting its highest since November 2022 at almost 4.1% as investors turned cautious ahead of key economic data that could influence the Federal Reserve’s next interest rate policy moves. The CPI report on Wednesday is expected to show headline annual inflation fell to 3.1% in June from 4% in the previous month, while the core index probably decreased to 5% from 5.3%. Markets are now pricing in a 94.9% chance of rates being hiked again during the central bank’s upcoming meeting on July 25-26 but uncertainty remains for the other three Fed meetings scheduled for later in the year. In the latest Fed commentary, Fed President Mary Daly said that she expects two further rate hikes to be announced this year to lower inflation, in line with early comments from Fed Chairman Jerome Powell.
Americans Become More Pessimistic in July
The IBD/TIPP Economic Optimism Index in the US unexpectedly fell to 41.3 in July 2023, the lowest since November last year, compared to 41.7 in June and market forecasts of 45.3. It also marks a 23rd month the reading stands below 50, indicating Americans remain pessimistic. “The economy continues to be the number one issue for Americans as we prepare for earnings season and new inflation data. The Six-Month Economic Outlook was the lone bright spot for July, as optimism slightly increased for the long-term, but it’s still a long way from positive. Expect some more twists and turns before consumers trust that the economy has stabilized”, said Ed Carson, IBD's news editor. The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, fell to 50 from 51.9 and the gauge for Confidence in Federal Economic Policies edged lower to 38.5 from 38.6. On the other hand, the Six-Month Economic Outlook rose to 35.5 from 34.5.
The yield on the US 10-year Treasury note fell below 4%, retreating for the second consecutive session after hitting its highest since November 2022 at almost 4.1% as investors turned cautious ahead of key economic data that could influence the Federal Reserve’s next interest rate policy moves. The CPI report on Wednesday is expected to show headline annual inflation fell to 3.1% in June from 4% in the previous month, while the core index probably decreased to 5% from 5.3%. Markets are now pricing in a 94.9% chance of rates being hiked again during the central bank’s upcoming meeting on July 25-26 but uncertainty remains for the other three Fed meetings scheduled for later in the year. In the latest Fed commentary, Fed President Mary Daly said that she expects two further rate hikes to be announced this year to lower inflation, in line with early comments from Fed Chairman Jerome Powell.
Americans Become More Pessimistic in July
The IBD/TIPP Economic Optimism Index in the US unexpectedly fell to 41.3 in July 2023, the lowest since November last year, compared to 41.7 in June and market forecasts of 45.3. It also marks a 23rd month the reading stands below 50, indicating Americans remain pessimistic. “The economy continues to be the number one issue for Americans as we prepare for earnings season and new inflation data. The Six-Month Economic Outlook was the lone bright spot for July, as optimism slightly increased for the long-term, but it’s still a long way from positive. Expect some more twists and turns before consumers trust that the economy has stabilized”, said Ed Carson, IBD's news editor. The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, fell to 50 from 51.9 and the gauge for Confidence in Federal Economic Policies edged lower to 38.5 from 38.6. On the other hand, the Six-Month Economic Outlook rose to 35.5 from 34.5.
Comment:
Wall Street Extends Gain Ahead of CPI Data
US stocks closed higher on Tuesday, extending gains for the second session, as investors looked forward to the key inflation report due tomorrow. The Dow Jones finished over 316 points higher, as Salesforce rose 3.9% after the company announced it will be increasing list prices an average of 9% in August. 3M and Boeing were also among the top performers and advanced by 4.8% and 2.6%, respectively. The S&P 500 gained nearly 0.7%, led by the energy sector as APA (+6.3%), Halliburton (+4.2%) and Schlumberger (+4.5%) outperformed. Meanwhile, the Nasdaq added 0.5%. Traders were also digesting comments from several Fed officials which continued to point to the need of further tightening this year. The odds for a 25bps increase in the fed funds rate this year currently stand at 95%, but investors remain divided about another rate hike. The economic calendar is soft today and the earnings season kicks off later in the week.
US stocks closed higher on Tuesday, extending gains for the second session, as investors looked forward to the key inflation report due tomorrow. The Dow Jones finished over 316 points higher, as Salesforce rose 3.9% after the company announced it will be increasing list prices an average of 9% in August. 3M and Boeing were also among the top performers and advanced by 4.8% and 2.6%, respectively. The S&P 500 gained nearly 0.7%, led by the energy sector as APA (+6.3%), Halliburton (+4.2%) and Schlumberger (+4.5%) outperformed. Meanwhile, the Nasdaq added 0.5%. Traders were also digesting comments from several Fed officials which continued to point to the need of further tightening this year. The odds for a 25bps increase in the fed funds rate this year currently stand at 95%, but investors remain divided about another rate hike. The economic calendar is soft today and the earnings season kicks off later in the week.
Comment:
Dollar Index Hits 14-month Low
DXY decreased to a 14-month low of 100.61
Wall Street Rallies after Softer Inflation
US stocks surged on Wednesday after both headline and core inflation fell more than expected in June, reinforcing the view the Federal Reserve may stop the tightening campaign sooner than expected. The Dow Jones gained around 250 points to 34548, the highest level since November last year, with 3M and Goldman Sachs up nearly 2% and among the top performers. The S&P 500 added 0.9% 4477, a level not seen since April of 2022, led by shares in the consumer discretionary, tech and real estate sectors. The Nasdaq was up about 1.2% to 13906, also the highest since April last year. Traders are currently pricing in a 92% chance for a 25bps increase in the fed funds rate this month, while the odds for another quarter-point hike in September fell to 13% from 20% before the CPI release and in November eased to 26% from 34%.
Brazil Business Morale Rises to 8-Month High
The Industrial Entrepreneur Confidence Index (ICEI) in Brazil rose by 0.7 points from the previous month to an eight-month high of 51.1 in July of 2023. This marks the second consecutive month in which the industry has shown confidence, attributed primarily to a more positive evaluation of the current economic conditions (+1.3 points to 45.5). Also, the indicator of future expectations increased (+0.4 points to 53.9), indicating optimism for the next six months.
FTSE MIB Close Rise to 15-Year High
The FTSE MIB index closed 1.8% higher at 28,573 on Wednesday, outperforming other benchmark European indices amid sharp gains for its heavyweight financial sector as markets digested the soft US inflation print. American consumer prices rose by 3% annually in June, below estimates of 3.1%, benefitting from a slowdown in core consumer prices. The development lifted equities amid hopes that the Fed will be able to ease its hawkish pressure. Banks were among the sharpest gainers as BTP yields fell by 15bps, aiding their balance sheet with Banca MPS and Banco BPM both adding more than 2%. In the meantime, STMicroelectronics shares surged 4.8% amid recommendation updates from Jeffries and Citigroup.
DXY decreased to a 14-month low of 100.61
Wall Street Rallies after Softer Inflation
US stocks surged on Wednesday after both headline and core inflation fell more than expected in June, reinforcing the view the Federal Reserve may stop the tightening campaign sooner than expected. The Dow Jones gained around 250 points to 34548, the highest level since November last year, with 3M and Goldman Sachs up nearly 2% and among the top performers. The S&P 500 added 0.9% 4477, a level not seen since April of 2022, led by shares in the consumer discretionary, tech and real estate sectors. The Nasdaq was up about 1.2% to 13906, also the highest since April last year. Traders are currently pricing in a 92% chance for a 25bps increase in the fed funds rate this month, while the odds for another quarter-point hike in September fell to 13% from 20% before the CPI release and in November eased to 26% from 34%.
Brazil Business Morale Rises to 8-Month High
The Industrial Entrepreneur Confidence Index (ICEI) in Brazil rose by 0.7 points from the previous month to an eight-month high of 51.1 in July of 2023. This marks the second consecutive month in which the industry has shown confidence, attributed primarily to a more positive evaluation of the current economic conditions (+1.3 points to 45.5). Also, the indicator of future expectations increased (+0.4 points to 53.9), indicating optimism for the next six months.
FTSE MIB Close Rise to 15-Year High
The FTSE MIB index closed 1.8% higher at 28,573 on Wednesday, outperforming other benchmark European indices amid sharp gains for its heavyweight financial sector as markets digested the soft US inflation print. American consumer prices rose by 3% annually in June, below estimates of 3.1%, benefitting from a slowdown in core consumer prices. The development lifted equities amid hopes that the Fed will be able to ease its hawkish pressure. Banks were among the sharpest gainers as BTP yields fell by 15bps, aiding their balance sheet with Banca MPS and Banco BPM both adding more than 2%. In the meantime, STMicroelectronics shares surged 4.8% amid recommendation updates from Jeffries and Citigroup.
Comment:
US Stocks Pop on Cooling Inflation
All major US stocks indexes were trading in the green on Wednesday afternoon as June CPI data came cooler-than-expected, raising hopes that Fed officials might rethink their stance on more rate hikes. The Dow Jones was up more than 100 points after reaching the highest level since November earlier in the session, as Salesforce, Goldman Sachs and Home Depot outperformed, adding nearly 2% each. The S&P 500 gained 0.8%, a level not seen since April of 2022, led by shares in the consumer discretionary, tech and basic materials sectors. The Nasdaq was up about 1.2%, also the highest since April last year. Bank stocks advanced firmly, with Citigroup and Goldman Sachs adding 2.9% and 2.5%, respectively. Also, regional banks such as Comerica(5.1%) and Zions Bancorporation (4.9%). In the news, Domino's Pizza surged over 11% after revealing its deal with Uber Eats.
All major US stocks indexes were trading in the green on Wednesday afternoon as June CPI data came cooler-than-expected, raising hopes that Fed officials might rethink their stance on more rate hikes. The Dow Jones was up more than 100 points after reaching the highest level since November earlier in the session, as Salesforce, Goldman Sachs and Home Depot outperformed, adding nearly 2% each. The S&P 500 gained 0.8%, a level not seen since April of 2022, led by shares in the consumer discretionary, tech and basic materials sectors. The Nasdaq was up about 1.2%, also the highest since April last year. Bank stocks advanced firmly, with Citigroup and Goldman Sachs adding 2.9% and 2.5%, respectively. Also, regional banks such as Comerica(5.1%) and Zions Bancorporation (4.9%). In the news, Domino's Pizza surged over 11% after revealing its deal with Uber Eats.Japanese Yen attempting fifth consecutive daily advance (first time since December)
USD/JPY plunge now approaching major support confluence- risk for price inflection
Resistance 140.10s, 140.93, 142.10/50 (key)- support 137.36/91, 136.15, 134.04
The Japanese Yen has continued to coil just below uptrend resistance with major event risk on tap into the close of the week. The focus is on a breakout of the monthly opening-range for guidance. These are the updated targets and invalidation levels that matter on the USD/JPY short-term technical charts.
Initial resistance now eyed at the 75% parallel (blue slope currently ~140.10s) backed by the objective May high at 140.93. Ultimately, a breach / close above the weekly open / 61.8% retracement of the 2022 decline at 142.10/50 would be needed to mark resumption of the broader USD/JPY uptrend.
Bottom line: The USD/JPY plunge us approaching the first major technical support hurdle just below the 138-handle. From at trading standpoint, look to reduce portions of short-exposure / lower protective stops on a stretch towards this key support zone – rallies should be limited to the weekly open IF price is heading lower on this stretch. I’ll publish an updated Japanese Yen Weekly Forecast once we get further clarity on the longer-term USD/JPY technical trade levels.
All major US stocks indexes were trading in the green on Wednesday afternoon as June CPI data came cooler-than-expected, raising hopes that Fed officials might rethink their stance on more rate hikes. The Dow Jones was up more than 100 points after reaching the highest level since November earlier in the session, as Salesforce, Goldman Sachs and Home Depot outperformed, adding nearly 2% each. The S&P 500 gained 0.8%, a level not seen since April of 2022, led by shares in the consumer discretionary, tech and basic materials sectors. The Nasdaq was up about 1.2%, also the highest since April last year. Bank stocks advanced firmly, with Citigroup and Goldman Sachs adding 2.9% and 2.5%, respectively. Also, regional banks such as Comerica(5.1%) and Zions Bancorporation (4.9%). In the news, Domino's Pizza surged over 11% after revealing its deal with Uber Eats.
All major US stocks indexes were trading in the green on Wednesday afternoon as June CPI data came cooler-than-expected, raising hopes that Fed officials might rethink their stance on more rate hikes. The Dow Jones was up more than 100 points after reaching the highest level since November earlier in the session, as Salesforce, Goldman Sachs and Home Depot outperformed, adding nearly 2% each. The S&P 500 gained 0.8%, a level not seen since April of 2022, led by shares in the consumer discretionary, tech and basic materials sectors. The Nasdaq was up about 1.2%, also the highest since April last year. Bank stocks advanced firmly, with Citigroup and Goldman Sachs adding 2.9% and 2.5%, respectively. Also, regional banks such as Comerica(5.1%) and Zions Bancorporation (4.9%). In the news, Domino's Pizza surged over 11% after revealing its deal with Uber Eats.Japanese Yen attempting fifth consecutive daily advance (first time since December)
USD/JPY plunge now approaching major support confluence- risk for price inflection
Resistance 140.10s, 140.93, 142.10/50 (key)- support 137.36/91, 136.15, 134.04
The Japanese Yen has continued to coil just below uptrend resistance with major event risk on tap into the close of the week. The focus is on a breakout of the monthly opening-range for guidance. These are the updated targets and invalidation levels that matter on the USD/JPY short-term technical charts.
Initial resistance now eyed at the 75% parallel (blue slope currently ~140.10s) backed by the objective May high at 140.93. Ultimately, a breach / close above the weekly open / 61.8% retracement of the 2022 decline at 142.10/50 would be needed to mark resumption of the broader USD/JPY uptrend.
Bottom line: The USD/JPY plunge us approaching the first major technical support hurdle just below the 138-handle. From at trading standpoint, look to reduce portions of short-exposure / lower protective stops on a stretch towards this key support zone – rallies should be limited to the weekly open IF price is heading lower on this stretch. I’ll publish an updated Japanese Yen Weekly Forecast once we get further clarity on the longer-term USD/JPY technical trade levels.
Comment:
Asian Stocks Mostly Rise on Easing US Inflation
Asian equity markets mostly rose on Friday, tracking gains on Wall Street overnight as data showing US producer prices rose less than expected in June bolstered bets that the Federal Reserve is close to the end of its rate-hiking cycle. The US central bank is still seen raising rates by 25 basis points in July, while traders scaled back bets of further rate increases this year. Meanwhile, Singapore’s economy grew 0.7% year-on-year in the second quarter, avoiding a technical recession. The S&P/ASX 200, Nikkei 225, Kospi, Hang Seng and Shanghai Composite indexes advanced, while the Topix and Shenzhen Component indexes declined.
Asian equity markets mostly rose on Friday, tracking gains on Wall Street overnight as data showing US producer prices rose less than expected in June bolstered bets that the Federal Reserve is close to the end of its rate-hiking cycle. The US central bank is still seen raising rates by 25 basis points in July, while traders scaled back bets of further rate increases this year. Meanwhile, Singapore’s economy grew 0.7% year-on-year in the second quarter, avoiding a technical recession. The S&P/ASX 200, Nikkei 225, Kospi, Hang Seng and Shanghai Composite indexes advanced, while the Topix and Shenzhen Component indexes declined.
Comment:
The greenback is approaching a make-or-break moment — at least as far as a closely watched technical indicator is concerned.
The Bloomberg Dollar Index has now surrendered more than 61.8% of its gains since May 2021, bringing it to one of the Fibonacci retracement levels popular among chart watchers. They tend to keep a close eye on these indicators to determine whether or not trends will extend or reverse.
What happens next is therefore crucial.
If the index remains below this point over the coming sessions, it would be a strong signal to traders that the currency’s losses are the beginning of a new longer-term downtrend, and not just an aberration.
The latest bout of weakness comes as the market now sees an end to a tightening spree that Federal Reserve officials begun communicating more than two years ago. The prospect is narrowing interest-rate differentials with other major currencies and weighing on the dollar.
This week, it dropped to the weakest level against euro and pound since early 2022. It’s even falling out of favor against the yen — where rates are still negative — with the cross falling to a two-month low.
The bearish signal seen in the chart of the Bloomberg Dollar Index could be soon validated elsewhere too. The ICE Dollar Index — a popular alternative to the BBDXY — stands just 0.6% higher than the 61.8% Fibonacci retracement of a rally that kicked off in January 2021.
To be sure, options paint a more mixed picture. While long-term bets are supportive of the US currency’s prospects, sentiment over a one-month sentiment has reached its least bullish level since September 2020.
The Bloomberg Dollar Index has now surrendered more than 61.8% of its gains since May 2021, bringing it to one of the Fibonacci retracement levels popular among chart watchers. They tend to keep a close eye on these indicators to determine whether or not trends will extend or reverse.
What happens next is therefore crucial.
If the index remains below this point over the coming sessions, it would be a strong signal to traders that the currency’s losses are the beginning of a new longer-term downtrend, and not just an aberration.
The latest bout of weakness comes as the market now sees an end to a tightening spree that Federal Reserve officials begun communicating more than two years ago. The prospect is narrowing interest-rate differentials with other major currencies and weighing on the dollar.
This week, it dropped to the weakest level against euro and pound since early 2022. It’s even falling out of favor against the yen — where rates are still negative — with the cross falling to a two-month low.
The bearish signal seen in the chart of the Bloomberg Dollar Index could be soon validated elsewhere too. The ICE Dollar Index — a popular alternative to the BBDXY — stands just 0.6% higher than the 61.8% Fibonacci retracement of a rally that kicked off in January 2021.
To be sure, options paint a more mixed picture. While long-term bets are supportive of the US currency’s prospects, sentiment over a one-month sentiment has reached its least bullish level since September 2020.
Comment:
USDJPY BULLISH WILL Go to 180 Yen
LONG
the Bank of Japan is unlikely to increase its ultra-loose policy rate until Governor Kuroda's term expires in the first quarter of 2023.
A break below 124is the start of bearish trend.
Technical: BULLISH
STRATEGY
BUY THE CORRECTION
Higher Highs
Higher Lows
Fundamentals:
See my previouse USDJPY trade ideas.All Tades are active, and a lot of fundamental explanations of USDJPY. Read them.Undestand them,then you can mae good trades.
Crude Oil Bearish Iran’s Growing Oil Production Boosting Up
SHORT
34minute Chart found its suppot . The corection was expected, as Japan Industrial Output Falls More than Initially Anticipated
BITCOIN WILL RISE HIGHER
LONG
GOLD STRONG BUY
Nasdaq100 US100 Bullish 21000 on Radar
LONG
EUR/USD re-targets 1.1000 post US-CPI
LONG
GBPUSD Bullish on Hot UK Inflation
LONG
XRP LONG 0.75$ and 1.15$ are on the Radar
LONG
GBPUSD Long Buyers to retain control
LONG
Litecoin Targeting Weekly Resistance
LONG
EUR/JPY Long A Break above creates more Buy Pressure
LONG
USDCHF BEARISH Meets monthly Low and Support
SHORT
LONG
the Bank of Japan is unlikely to increase its ultra-loose policy rate until Governor Kuroda's term expires in the first quarter of 2023.
A break below 124is the start of bearish trend.
Technical: BULLISH
STRATEGY
BUY THE CORRECTION
Higher Highs
Higher Lows
Fundamentals:
See my previouse USDJPY trade ideas.All Tades are active, and a lot of fundamental explanations of USDJPY. Read them.Undestand them,then you can mae good trades.
Crude Oil Bearish Iran’s Growing Oil Production Boosting Up
SHORT
34minute Chart found its suppot . The corection was expected, as Japan Industrial Output Falls More than Initially Anticipated
BITCOIN WILL RISE HIGHER
LONG
GOLD STRONG BUY
Nasdaq100 US100 Bullish 21000 on Radar
LONG
EUR/USD re-targets 1.1000 post US-CPI
LONG
GBPUSD Bullish on Hot UK Inflation
LONG
XRP LONG 0.75$ and 1.15$ are on the Radar
LONG
GBPUSD Long Buyers to retain control
LONG
Litecoin Targeting Weekly Resistance
LONG
EUR/JPY Long A Break above creates more Buy Pressure
LONG
USDCHF BEARISH Meets monthly Low and Support
SHORT
Comment:
trade is open