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Inflation Report: 11 Jan 2023Finally there is a sense of relief. The US inflation is just on a some-what downward spiral. It's almost as if we peaked at a whopping 9.1% and now dropping to around 6%. And let's not forget all our friends abroad, like Germany where it's dropped from 10. 4 in October down to 8.6%, UK dropping from 11.1% slightly down to 10.7%, Canada's 8.1 dropped to 6.8%, France's steady 6.2%, and China's decent1.6%. And let's not forget our lekker country, South Africa where inflation has also dropped from 7.8% down to 7.4%. It's just too bad all these numbers are due to supply chain issues, war, and food shortages. But it looks like we have potentially seen the end of The Great Inflation - and now things should start to settle. Your thoughts? Trade well, live free Timon (Trader since 2003)
ECONOMICS:USCCPIEducation
by Timonrosso
Inflation & Interest Rate Series – Below 5.3% is Crucial for CPIContent: • Why CPI must be below 5.3%? • Can we invest or trade or hedge into inflation? Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us. Micro 5-Year Yield Futures 1/10 of 1bp = US$1 or 0.001% = US$1 3.000% to 3.050% = US$50 3.000% to 4.000% = US$1,000 See below ideas on the previous videos for this series.
Editors' picks
CBOT_MINI:5YYU2022Education
by konhow
4
Inflation & Interest Rate Series / Dollar and Gold I have started this inflation and interest rate series, in our last video, we discussed "Inverted Yield". Today will be discussing the relationship between: . Inflation . Interest rate . Dollar and . Gold Today's Content: • Why with higher interest rates, it strengthens the USD • Is USD the strongest currency? If not, then who? • Strategy to counter inflation • Interest rate higher, but a lower USD? Dollar Index: . Measure the value of the dollar against a basket of six foreign currencies. . These are: the Euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona. . With the increase of money supply over the decades, it causes currencies dilution. When currencies weaken, inflation follows. COMEX Gold 0.1 = US$10 1.0 = US$100 10 points = US$1,000 Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
Editors' picks
ICEUS:DX1!Education
by konhow
7
Inflation is high, Why gold price falling?As traders, of course.. We know that when inflation is too high, safe haven prices such as gold will soar. But that only applies before 2009. Before bitcoin was launched for the first time. Not many traders know, that market participants such as banks, big institutions, fund managers, and big companies trust bitcoin as a safe-haven, which actually competes with gold. When inflation is too high, market participants will move their money between bitcoin and gold. So this is one of the reasons why gold falls when inflation is too high. We can clearly see from the short-term chart above, that gold is bearish but bitcoin is bullish, and vice versa, the unidirectional correlation between bitcoin and gold. However, when the USD is optimistic about strengthening, both will be equally bearish. It can be concluded that both are the same as hedging asset. Also, we can use COT data from CFTC and LME to know gold and crypto sentiment and correlation. Coinbase and JPMorgan can also be considered. But I'll discuss this separately in the next explanation. Hopefully this can help anyone, so that it can be considered for trading in gold and bitcoin. Practicing how to understand market behavior is much better than just understanding.
SAXO:XAUUSDEducation
by DNP-FX
One Way to Hedge Inflation: REITsOne way to hedge a high inflation rate is to invest in REITs. Dividends can help offset some of your higher costs. This is touted all over at this time, but don't throw darts at random REITs. And to be honest, chances are your small fund manager could probably use your guidance if you're well-educated on the markets. The same due diligence is required for any investment even if you are only investing for the dividends. The share price doesn't matter as much as the company's Income, but good Income for high dividends comes from a strongly managed company, as always. This is important because you'll hold the position for a while. Start with the technical analysis to pick the REITs you'll research further. We do this at TechniTrader by starting with our scans, which look for improvement in the trend and also our large-lot indicator set. Example: NVST came up on TechniTrader scans today because it's attempting a bottom at a previous buy zone which is at the lows of a long-term trading range and it has improving indicators, technical and fundamental. All good there to start more fundamental analysis, but solid risk analysis requires confirmation of that bottom fully developing before taking action. Next, we check the TechniTrader fundamentals, which focus on how strong the institutional holdings AND holders are, the most important financial metrics and more. If all is good there, then we put the stock on a watchlist to wait for the chart patterns to set up for the best entry and risk to profit profile. For all investing and trading, a step-by-step plan for confirming when execution takes place once you've done the work to pick the best opportunities is the difference between the retail crowd and the professionals who make a living in the markets. Happy TechniTrading! Please Like and Follow if you're going, "Right? Why didn't I think of that?!" There's more where that came from at my website.
NYSE:NVSTEducation
by MarthaStokesCMT-TechniTrader