Silver outlook. Most undervalued commodity.Cycle tops this week and we took our profits at 20.5 - I don't expect much more upside for now. Short term cycle is down and we will go long again at a better price, below 20. We switch from the September contract and will trade the December futures from now on. I do not recommend to trade silver short - it is a very risky venture, no ideas will be given regarding this option.
Long term cycle is up until 2028. What we can do now? Use the profit to accumulate a surplus using non-leveraged instruments - either the physical metal or an ETF, I recommend the Swiss ZKB silver fund. In the short term there could be a small loss, but it is for a long term investment. If this doesn't suit you - store cash separate from your account. It is very important to accumulate a surplus in my opinion.
For now we stand aside - once there is an opportunity I will update you.
Have a good week and mood!
*Please do remember that futures trading involves a substantial risk of loss and is not suitable for all investors.
Cycles
Updated BTC Cycle Targets and DatesIn this chart I have used logarithmic regression to identify cycle tops and bottoms in BTC. Using the hypothesis of lengthening cycles, I have 3 price targets for a cycle top in mid-to-late 2022. With the current weighting of my regression, it shows that BTC is undervalued right now, with the fair value shown using a blue line.
LONG - Gold"I love gooooold, the look of it, the taste of it, the shmell of it, the texture..."
I'm sure Goldmember would also love gold's seasonality right about now too! Gold has had an amazing run so far this year and it looks like its set to continue into October. I put together the closing high returns and closing low returns for the dates below!
I hope it helps,
Andre
For the past *5 years* July 25th to August 24th:
2015: +6.05% | -1.35%
2016: +3.85% | 0.00%
2017: +3.30% | -0.50%
2018: 0.00% | -4.31%
2019: +8.69% | 0.00%
For the past *10 years* July 25th to August 24th:
2010: +4.22% | -2.24%
2011: +16.36% |-0.05%
2012: +4.12% | -0.25%
2013: +5.06% | -3.43%
2014: +1.62% | -1.51%
2015: +6.05% | -1.35%
2016: +3.85% | 0.00%
2017: +3.30% | -0.50%
2018: 0.00% | -4.31%
2019: +8.69% | 0.00%
For the past *15 years* July 30th to September 6th:
2005: +3.61% | -0.23%
2006: +3.46% | -3.02%
2007: +4.03% | -0.60%
2008: +2.28% | -12.37%
2009: +6.49% | 0.00%
2010: +6.84% | 0.00%
2011: +16.76% | 0.00%
2012: +5.15% | -1.28%
2013: +7.20% | -3.30%
2014: +1.64% | -2.74%
2015: +7.26% | -0.22%
2016: +1.04% | -2.99%
2017: +5.55% | -0.78%
2018: 0.00% | -3.71%
2019: +9.14% | -0.25%
For the past *20 years* July 30th to October 8th:
2000: +0.31% | -2.62%
2001: +10.12% | -0.15%
2002: +6.84% | -1.03%
2003: +9.21% | -2.87%
2004: +7.75% | -0.14%
2005: +9.64% | -0.23%
2006: +3.46% | -11.34%
2007: +12.32% | -0.60%
2008: +2.28% | -17.47%
2009: +12.06% | 0.00%
2010: +15.18% | 0.00%
2011: +16.76% | -1.54%
2012: +10.76% | -1.28%
2013: +7.20% | -3.30%
2014: +1.64% | -7.69%
2015: +7.26% |-0.22%
2016: +1.04% | -7.05%
2017: +6.21% | -0.78%
2018: 0.00% | -3.71%
2019: +9.14% | -0.25%
July 5 Market Update | Technical, Fundamental, NewsDescription:
An analysis for the week ahead.
Points of Interest:
Low-Volume Above $3,150; $3,200 Balance; Tech Overextension; Weakness In Financials, Energy.
Technical:
Broad-market equity indices one time framed higher last week, evidenced by the higher highs and lows on the daily time frame, and closed the week off near a resistive low-volume area.
Recapping last week’s action, on Monday, the S&P 500 established a higher low, above the year-to-date volume weighted average price, and squeezed on good delta, through resting liquidity at and above $3,020.
After Tuesday’s challenge higher, the S&P retested $3,100, a high-volume area, and balanced Wednesday, building value and acceptance of $3,100 as evidenced by the responsive participation intra-day.
On Thursday, the U.S. economy added greater than expected payrolls, driving prices higher at the open, before establishing excess and fading to close the gap below.
Overall, though extended, the market is at an important technical level. Breaking further into the prior low-volume resistance would point to a change in sentiment, quashing the initiative activity that drove prices lower in the first place.
Looking beyond the broad market indices, the innovation-driven, technology-based sectors are extended while relatively weak sectors, such as energy and financials, suggest bigger selling may be around the corner. For a continuation higher, buyers must step up on dips and increase participation in search of higher prices, helping ensure value follows closely behind.
Scroll to bottom of document for non-profile charts.
Key Events:
Non-Manufacturing Activity; Final Composite And Services PMI; Initial Claims; Wholesale Inventory; PPI; Consumer Credit; JOLTS.
Fundamental:
The Federal Reserve destroyed price discovery and delayed the inevitable. yhoo.it
Boeing Co (NYSE: BA) placed final part orders for its 747 jumbo jets. fxn.ws NYSE:BA
General Motors Company’s (NYSE: GM) China quarterly sales dropped 5%. fxn.ws NYSE:GM
Global GDP to remain below pre-virus levels through most of next year. bit.ly
The Federal Reserve looks to Australia’s central bank for rate strategy. on.wsj.com
Airbus SE (OTC: EADSY) close to slashing jobs as output may drop 40%. reut.rs OTC:EADSY
Democratic nominee Joe Biden to end most of President Trump’s tax cuts. cnb.cx
Royal Dutch Shell plc (NYSE: RDS.A) to cut asset values by up to $22 billion. reut.rs NYSE:RDS.A
Lululemon Athletica Inc (NASDAQ: LULU) to buy Mirror for $500 million. bit.ly NASDAQ:LULU
By year end, corporate earnings may recover from the pandemic slump. bit.ly
Key innovation principles for delivering net-zero emissions, per the IEA. bit.ly
Laying out the worst-case scenario, a collapse of the financial system. bit.ly
Q2 projections are miserable as average S&P 500 earnings may decline up to 45%. bit.ly
The U.S. added 4.8M payrolls, while the unemployment rate shrunk to 11.1%. bit.ly
Global refinery utilisation rates in 2021-2024 may be 3% lower relative to 2019. reut.rs
Tesla Inc (NASDAQ: TSLA) beat analyst estimates for Q2 vehicle deliveries. reut.rs NASDAQ:TSLA
Brazilian regulators halt Facebook Inc’s (NASDAQ: FB) payments service. bit.ly NASDAQ:FB
Large U.S. banks pass the Fed's stress test, but must submit new capital plans. bit.ly AMEX:XLF
ASEAN response mitigated economic damage, but unlikely to offset credit risks. bit.ly
Sentiment: 22.2% Bullish, 32.0% Neutral, 45.9% Bearish as of 6/27/2020. bit.ly
Gamma Exposure: (Trending Lower) 3,223,157,668 as of 7/2/2020. bit.ly
Dark Pool Index: (Trending Lower) 46% as of 7/2/2020. bit.ly
Product Analysis:
S&P 500 (ES): TVC:SPX AMEX:SPY
Nasdaq 100 (NQ): TVC:NDX NASDAQ:QQQ
Russell 2000 (RTY): TVC:RUT AMEX:IWM
Gold (GC): AMEX:GLD
Crude Oil (CL): AMEX:USO AMEX:DBO AMEX:USL
Treasury Bonds (ZB): NASDAQ:TLT
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.
In no way should this post be construed as investment advice.