Waning momentum in all risk on trades has been a theme of ours, but the contracting triangle in Silver cannot last forever. below 24.10 prewarns; 23.40 trendline support and 100dma opens up test of 22.00. below there - watchout. Stoploss for shorts above 25.25
We have been watching the recent weakness in Bund yields and other European rates driven by further lockdowns across Europe. meanwhile, given we are NOT risk bears we continue to use the AUD as the risk proxy for equities. EURAUD has failed in 1.6550/90 zone multiple times this year which gives nice risk reward short setup. Sell at 1.6540, stop above 1.6600,...
We have been tracking the contracting triangle in Tesla off the end of August high at 541.00. Break above 450.00 opens up retest of 500 initially - then 541 all time high. Target 600! This fits with our themes of the "fastest horses" testing new highs pre election (Nas100, Silver, TSLA etc)
Risk off sentiment has reached a near term peak across markets. Using Apple as a barometer, we have view the weakness into support zone at 100-105 which has held twice. SP500 also held 100dma at 3195. Opportunity to be long here with stop below 95.00, targeting 125/130.
The break above 21.30 offered clear risk reward for long with stop back below 21.00 - overstretched short term technicals and speed of move is signal for profit take. For those still bullish, trail stop below 22.30 to lock in 1000 pip gain, next upside target 21.60/80
USDMXN we regard as a strong barometer for overall risk. Whilst we have liked Equity indices to break lower in face of relentless bad news and over stretched technicals, the turn up in USDMXN today is noticeable. Close above 21.30opens up for test of 21.80. Our core views are short Nas100 targeting 10,000 and SP500 targeting 3150-3200