The short-term flipped to an uptrend yesterday. I will wait until Saturday to review the medium-term, but 11 of the 47 ETFs that I track closed at new highs today. So, it is hard to make the case that the current medium-term market trend is negative This chart of the institutional index looks like it is headed higher again. Most of the other major indexes have a similar look in their charts. This chart does a decent job showing the short-term trend. The Leader List Emerging Market ETFs are red hot. Technology and Momentum stocks are regaining their strength. Materials look like they could be a leader again soon. It was a broad-based rally tod...
The Brookings Institute says Auto slowdown Flashes Caution Lights for Manufacturing Employment and Trump. A switch to self-driving, trends towards electric, and a glut of used cars are all in the spotlight. After seven years of strong growth following the 2008 economic crisis and federal bailouts of both General Motors (GM) and Chrysler (FCAU), auto sector output and employment growth have slowed markedly from record levels. Years of catch-up purchases by car buyers have finally plateaued. Likewise, automakers must economize to invest billions in developing the electric and self-driving cars of tomorrow. And so the layoffs have begun. Last f...
Although for the last two days gold and silver regained some ground but, generally, precious metals investors feel a lot of pain this year. For example, on July 10 the silver was trading at this year’s lowest level so far. However, it looks like lower prices of silver attracted a bunch of investors who started aggressive accumulation of this metal. The chart of SLV looks very promising: Source: Simple Digressions As the chart shows, July is an exception. Generally, Western investors buy silver when its prices are going up. And vice versa. However, in July SLV added as many as 9.4 million ounces of silver at lower prices than those...
Yesterday’s signals were not triggered as there was no bullish price action at 1.1461. Risk 0.75%. Trades may be entered before 5pm London time today only. Long Trades Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1409 or 1.1382. Place the stop loss 1 pip below the local swing low. Move the stop loss to break even once the trade is 20 pips in profit. Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride. Short Trade 1 Go short following a bearish price action reversal on the H1 time frame immediately upon th...
Some time ago, Deutsche Bank’s chief international economist, Torsten Slok, presented several charts which showed that “Canada is in serious trouble” mostly as a result of its overreliance on its frothy, bubbly housing sector, but also due to the fact that unlike the US, the average household had failed to reduce its debt load in time. Additionally, he demonstrated that it was not just the mortgage-linked dangers from the housing market (and this was before Vancouver and Toronto got slammed with billions in “hot” Chinese capital inflows) as credit card loans and personal lines of credit had both surged, even a...
Fed Chair Janet Yellen said they are monitoring inflation closely, but also expressed optimism about the economic situation. What does it mean for the Fed? Here is the view by ABN AMRO: Here is their view, courtesy of eFXnews: ABN AMRO Research comments on Fed Yellen’s testimony before the Congress. “Although the Fed seemed to stick to its base case that diminishing slack would foster ‘a stronger pace of wage and price increases’, Ms. Yellen was a little more cautious about this prospect. She noted that there was ‘uncertainty about when–and how much–inflation will respond to tightening resource utilization’. The Fed’s con...
EUR/USD 4 hour The EUR/USD bullish breakout reached the 1.15 target but then fell quickly down to 1.14. The bearish reaction could indicate that the waves 5 have been completed within wave 3 (green), which could indicate the start of a bearish retracement within wave 4 (green) towards the Fibonacci retracement levels of wave 4 vs 3. A break above 1.15, however, would indicate the revival of the uptrend and invalidate a larger correction within wave 4. 1 hour The EUR/USD could be building a bigger correction first before completing the wave 4 (green) retracement. Alternatively, the price could be in an uptrend if the EUR/USD manages to break a...
Previous: On Wednesday, trading on the euro closed down. Market volatility was high as Janet Yellen’s pre-prepared remarks were published. She remarked that the US economy was growing fast enough for another rate hike and plans to continue normalising the Fed’s balance sheet. The dollar strengthened against its major rivals on this news. In theory, it should have begun to weaken against the euro by the end of the day, given that the US regulator doesn’t feel it necessary to sharply raise interest rates. US bond yields sharply fell in response to the comments. Depending on the data to come out over the course of the rest of the year, the...
After opening the day on a positive note, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the FMCG sector and realty sector witnessing maximum buying interest. The BSE Sensex is trading up 235 points (up 0.7%) and the NSE Nifty is trading up 67 points (up 0.7%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.7%. The rupee is trading at 64.42 to the US$. Indian share markets scaled record high levels during the morning trades today. Most of the gains were seen on the back of dovish comments by the US Fed Chair Jane...