CAC 40 Drops Hard! Fed's New Tone Sparks Sharp DeclineCAC 40 (French Index) on a 1-hour timeframe initiated a short trade using the Risological Trading Indicator. The sharp decline aligns with fundamental market dynamics influenced by the Federal Reserve's policy stance.
Trade Highlights:
Entry : Short position initiated based on bearish sentiment.
Current Trend: Sharp downward movement observed.
Reasons for Decline:
At 8:15 AM, the December futures contract for the CAC 40 fell 110.5 points, settling at 7277.5 points, indicating a 1%+ decline at the open.
The Federal Reserve cut its key interest rates for the third time this year, reducing them to a range of 4.25% to 4.50%.
Fed Chair Jerome Powell signaled a "new phase" of monetary policy, characterized by a slower pace of rate cuts, contrary to market expectations.
Updated projections show only two rate cuts next year, compared to the four previously anticipated by investors, fueling bearish momentum.
Cac40index
CAC40 Vulnerable Amidst French TurmoilThesis: A confluence of internal political divisions, social unrest, and external economic pressures creates a compelling shorting opportunity in the CAC40 index.
Key Points:
Domestic Disarray: Recent elections have strengthened the far-right in France, weakening President Macron's centrist hold on power. This political fragmentation leads to policy gridlock and hampers economic stability.
Social Unrest: Macron's economic policies have alienated segments of the population, triggering protests and strikes that disrupt business activity.
Global Headwinds: Rising populism across Europe and the ongoing war in Ukraine create a volatile global economic environment. This uncertainty further strains the French economic outlook through inflationary pressures and supply chain disruptions.
Bearish Outlook for CAC40: The aforementioned factors are likely to negatively impact the performance of companies listed on the CAC40. Investor sentiment is already shifting, as evidenced by recent hedge fund activity in European stocks.
short #fra40 around 7550 with minimum 200 pts target at 7350i wont say much stuff,but what i will say ,its full fundamental and what happens in the country
#cac40 (fra40 outperform many index,if its not all) while in France all gone bad since many weeks
Big protest and it is not finish..
next data will surely be down as protest had block few sector
the President public opinion had never been so low u can go on twitter every day in the best trend have aty least 2 tag for him and all are bad.
so i dunno but many gap still open far down
and at anytime i big drama protest can happens too
but technically have so much gap to fill
Developing FRA40 pattern...?The bullish channel got violated after the peak at price 6797.7, this is now a change of structure. Looking for market to hit price 6627.1 which is our previous daily high then take a slight upward move to complete head-and-shoulders pattern… From the emerging formation then we can smoothly continue to go bearish until the neckline at 6420.0…
ridethepig | CAC Market Commentary 2020.11.25📌 ridethepig | CAC Market Commentary 2020.11.25
The stem for the ending of a retrace and intentions of a turn...
Breaking down ahead of US elections was strategically important.
This was not a typical personality vote, the motives of Democrats are rather exclusively known and transferring the power here will indeed be revolutionary. Neither side can accept the loss, whether we see this end up in the courts or whether we see Biden with the 'hospital pass'... it is irrelevant for the sake of this conversation because in general sense of the term and it is weighing on global equities including DAX, CAC, FTSE, IBEX, FTSEMIB and etc. Eyes on the highs today, a move down from these levels opens up all sorts of problems for buyers.
Thanks as usual for keeping the feedback coming 👍 or 👎
ridethepig | French Equities into the election and beyond📌 An update to the map for French Equities
By now we should have all positioned our portfolios defensively and be sure that in doing so by covering we are ensuring that our opponent will not try a steam roller!
Think back to the diagram and follow the flows....
We have a typical position here in which French Equities can be sold actively. Thanks to the economic slowdown, covid and election risk, we can quickly bring about the attack of our targets. Sellers have already completed the difficult part of the move, but we must not go to sleep on the job!
For the sake of the discussions here, encourage all those who are trading the moves down in equities to start sharing their charts and views in the comments and we can further the conversation and developments.
CAC40 Short Entry on Divergence 13:45:39 (UTC) Wed May 13, 2020As of the open today, the French stock market is down 32 percent from February. There's a broad based stock market crash going on, with financials down 42% year to date. For this, I will be shorting from these regions, and using the futures index as it's proxy.
13:51:33 (UTC)
Wed May 13, 2020
CAC 40 Index - heading towards 2012 lowEurope Markets entering strong bearish momentum.
France is at the beginning of the COVID-19 Pandemic, number of infected people expect to grow exponentially in the upcoming weeks.
France, Spain, Germany following Italy's state of emergency.
We expect now a lower low of the CAC 40 Index.
At the correction move to 4600, we can start shorting the Index with the price target of 2012's low at 2800.
Europe will enter in recession if serious state economic measures are not taken.
"Two of the EU's biggest states, France and Spain, have followed Italy in announcing emergency restrictions to combat the spread of coronavirus. France, a country of 63.5 million, ordered the closure of all non-essential places used by the public from midnight (23:00 GMT)." 15 March - bbc.com
Let me know your view in the comments down below!
#CAC40, The big landslide has begun?We are still a long way from getting the double top pattern confirmation but we have an interesting start here, just in case the CAC40 dropped below 5000 points so the trend change will be final.
RSI + Stochastic 2 These indicators indicate more room for declines.
Target: $ 5450
Channel broken a bit early, but could indicate bear marketMy call on CAC40 is changed from long to neutral now that global markets are increasing their fear on a global slowdown. This is evident in markets around the world as Asian markets plunged today as did European. US is set to be down as well. Overall, the channel break is incredibly disheartening for those expecting higher gains as it was a huge move down (3 percent). If you were not in this trade closer to the bottom, you may have missed your chance. If you didn't sell before this dip then you may have made some money. For those shorter-term traders, you may have already missed the train. We could get back in this channel tomorrow, but that seems unlikely. I'm actually more neutral to short than neutral, but Trading View only gives us three options so I prefer not a drastic shift from long to short. Let's see what happens over the next few days.
What is the next target of #CAC 40 ?The trend of the CAC 40 in recent years is an uptrend.
in October 2011 the Cac has undergone a technical correction of 1200 points and then very quickly he returned to his upward trend, in October 2015 after a long rise the Cac has made technical correction of 1000 points pretty much like the first time and quickly took it back bullish trend, in October 2017 the Cac has made a technical correction of 800 points and at the moment it is in progress and normally should be redone as the last two completed times a rise is exceeded the last record price.
The Cac will seek a goal to reach and the point of the Double Top (6100) in 14% of the current price is probably possible
Buy Cac 40:
Entry Price: 5290
Take Profit: 6100
Stop Loss:5000
CAC40 approaching resistance, potential drop!CAC40 is approaching our first resistance at 4931 (horizontal overlap resistance, 38.2% & 38.2% Fibonacci retracement, 61.8% Fibonacci extension ) where a strong drop might occur below this level pushing price down to our major support at 4556 (61.8% Fibonacci retracement , horizontal pullback support)
Stochastic (34,5,3) is also approaching resistance where we might see a corresponding drop in price.
CAC in the black list?CAC I do not trade this but is weird to hear a phone call from an old colleague of a French bank, but indeed this is not a call.
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