The Trend Is Your FriendWeekly Review
- Markets keep going up
- Keep correcting the downside from 2018 that did not make sense
- Markets are bullish but the volume is lower so the vulnerability is bigger
- Negotiations between China and USA
- Some memorandums will be confirmed and they will keep extending the deadlines that probably will take until summer
- We should receive some good materially this week
- European macro keeps weakening
- Manufacturing data are below 50 for the first time since 2013
- This week there is not much macro
- ECB should speak and explain their position in regard of this economic slowdown
- When ECB tells what they are going to finance will be positive for the markets
- Keep an eye on both the trade talks between China & USA and the ECB
- Also, there is a meeting between USA and North Korea that will be more constructive than destructive
- Strong American macro-data can indicate that the economy can keep increasing
- American GDP is expected to be 2.5 which should be good
The most important factors to take:
- A constructive talk between USA and North Korea
- Progression in the talks between USA and China
- ECB starts talking about the stimulus package
If there is not any displeasure markets should keep the bullish trend, however, watch out for the volumes as they are lower.
America
Constructive Trade Talks? Bullish MarketWeekly Review
- Markets keep going up
- Keep correcting the downside from 2018 that did not make sense
- Markets are bullish but the volume is lower so the vulnerability is bigger
- Negotiations between China and USA
- Some memorandums will be confirmed and they will keep extending the deadlines that probably will take until summer
- We should receive some good material this week
- European macro keeps weakening
- Manufacturing data is below 50 for the first time since 2013
- This week there is not much European macro
- ECB should speak and explain their position in regard of this economic slowdown
- When ECB tells what they are going to finance will be positive for the markets
- Keep an eye on both the trade talks between China & USA and the ECB
- Also, there is a meeting between USA and North Korea that will be more constructive than destructive
- Strong American macro-data can indicate that the economy can keep increasing
- American GDP is expected to be 2.5 which should be good
The most important factors to take:
- A constructive talk between USA and North Korea
- Progression in the talks between USA and China
- ECB starts talking about the stimulus package
If there is not any displeasure, markets should keep the bullish trend, however, watch out for the volumes as they are lower.
S&P To New HighsWe had another good week and the S&P500 is now 10,7% up YTD. Regarding the week ahead, it does not have a bad outlook.
- In the worst scenario it will be a period of consolidation
- Trade talks between US & China and Brexit remain a concern for traders
Both have deadlines in March and outcomes are expected to be positive which will boost the equity markets
- 3 main variables to bear in mind:
Trade talks between US and China - Expected to keep progressing
Brexit - Will be extended to reach a better negotiation and the markets are getting used to it
US Government Shutdown - Forecasted to disappear soon
Unless something bad occurs to these variables market should keep the bullish trend .
MAJOR update on USD/JPYMacroeconomic side
The price in the last sessions is continuing to maintain this lateral / bullish trend without giving too many signs of inversion, supported by a recovering dollar. This week will be essential to understand the short-term trend that will follow both the dollar and the yen: in fact, tomorrow the Fed chairman will make a conference, from which investors expect him to keep his very short-term decision unchanged (do not force the market and the US economy with further monetary restrictions). On the other hand, on Thursday, the Japanese GDP data will be published, expected positive and clearly improved compared to previous ones: this should strengthen the Japanese currency against the other majors.
The technical side
Technically there is a very strong resistance area between 110.70 and 110.90: the main EMAs (daily, weekly and monthly time frames) pass in here and the 110.90 should not be violated on the upside due to the macro-economic factors just mentioned. If this happens it is because the short-term trend has become long and the target area will become the one between 113 and 115
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Crude: Long first, then SHORT !The slowdown in the world economy, especially the Chinese one, which is the country with the highest demand for fossil fuels, will have a negative impact on stockpiles, dropping the price considerably.
Institutional investors, and not, have started to bet downwards on both WTI and BRENT and it is very likely that this rebound is due to profit taking only. Moreover, to weigh on this scenario there is the choice of the United States to increase the extraction, compromising this sort of very unstable equilibrium that are trying to create the OPEC countries on a production reduction pact that seems to be compromised. Summing up, in the medium term we expect another descent with a target of $ 40.
In the very short term, however, the situation is different: at the technical level it has broken the dynamic resistance identified by the EMA20 daily and is aiming the next, most important, EMA200, placed about 5 dollars above the ema20.
In the very short / short period, we expect to reach the $ 60 area.
Apple, Buy Signal.We can open buy near $145 - $150
The price can move up to $180 - $185 because:
- Stock rate bounced from a very important level, 50% of the previous UpTrend (Since the 2012 year).
- Low risk and predictable stop Loss.
- Company earnings are growing.
After 75 like, I will write all entry end exit points. And places where is the best set Stop Loss.
USDJPY Warming up for a stop run and then DUMPThe Samurai are planning a surprise attack on Dixie.
So we have:
- A few highs resting just below a significant breaker (or just plain broken support that should now be resistance), creating a liquidity pool just above them (everyone who went short around this level now probably has their stops above that high.
- Void left by the inefficient move down
- Confluence with DXY since it broke some lows recently, making it more bearish.
- The breaker I outlined above falls right on the .705 fib retracement for this whole move.
This makes it a perfect candidate for a short play once it reaches that .705 level.
I can see two targets here with decent R/R ratios, marked on the chart.
USD MXN rangingWe find this pair ranging, we are expecting a bounce off the bottom support line as we are expecting the USD to make a strong rally again next week, but we will be keeping an eye on this and Entry, TP and SL will be sent out to our clients as and when this trade becomes valid.
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Market slaughter housesIn this screencast and links below I expose what's going on in market manipulations.
In essence large organisations - who shall remain nameless - are busy buying back their own stock in an attempt to stabilise Wall Street and other markets. This is likely to give small investors a sense of security that they should buy stock. Price - to the minds of the big boys - is likely to move north as the small fish come in. Then the big boys sell off!! Oh sure - this is a gamble by the big boys. How big? Nobody really knows for sure. Estimates are in the region of Trillions of US dollars.
Yes the big boys have a secret 'war chest' with which to fight the markets. And the 'big' manipulate money out of the pockets of the poor. This is Corporate America - innit?
References:
1. Corporate buybacks keeping the markets afloat (at this time).
2. Why would a company buy back its own shares?
USD YUAN (US CHINA) FOREX BREAKOUT SOON (JUNE 22-23?) TRIANGLE*Horizontal triangle with a breakout by 23 June at the latest (apex).
The breakout could be either direction so pay attention to when the breakout starts in order to short or long.
The potential breakout could be gigantic so this along with bitcoin is one to watch out far.
Remember, make sure the breakout is trending (bullish or bearish) before investing or it may reverse.
As always, any and all feedback would be awesome!
EURUSD SHORT TO LONGEURUSD has clearly broken the 1.20 monthly res for a while. Right now its definitely looking over bought, so upon the next month I'm thinking we're going to be seeing those sells happening maybe back to the 1.20 res but most likely hover just over it at 1.205/1.21 I'll be placing buys at 1.21 with a TP at 1.27 then buy again to TP at 1.35 (6 Months+). In the short term be selling at this all the way to 1.21.
News will be playing a big role to switch the buy to a sell..keep on the look out and take the opportunity when you can!
All the best.
BCH Hints to Sell all to USDBy highlighting the lack of support to continue to push through the recent upward resistance (highlighted in blue) and drawing numerous resistance lines, we can see there is a strong support to switch from BCH to USD. You heard it here first.