We like continuation breakouts on BitCoin from the current situation. However be cautious of aberrations and spikes. Liquidity on the "true" bitcoin is very low and thus the cryptocurrency is prone to manipulation. Keep your stops in the machine at all times, and prefer short holding periods. This is a trading vehicle, not an investment!
Risk off is definitely the theme today. Asian stocks and U.S. futures tumbled on Trump’s Mexico tariff surprise, while reports of Beijing’s plan to restrict exports of rare earths to the U.S. if needed added to ongoing trade war angst globally. Data also showed China’s manufacturing sector slowed more than expected in May. JPY crosses have been sold...
US equities slid and sovereign bonds surged as investors feared President Trump's shock move to slap tariffs on Mexico risked tipping the United States, and maybe the whole world, into recession. We like the odds of selling Dax this morning on a continuation break, in line with the risk-off sentiment.
We are initiating coverage of the "real" Bitcoin after Craig Wright (craigwright.net) claimed to be Satoshi Nakamoto. Coverage of Crypto will always be more technical in nature than in FX or other assets as it is a purely speculative vehicle. Yesterday's Continuation breakout pushed prices to all-time highs. Profit taking is to be expected now. Prefer...
We are initiating coverage of the "real" Bitcoin after Craig Wright (craigwright.net) claimed to be Satoshi Nakamoto. Coverage of Crypto will always be more technical in nature than in FX or other assets as it is a purely speculative vehicle.
US equity markets came under strong pressure. Lower equities and trade war concerns have pushed 10Y US treasury yields down to 2.24%, the lowest level since the autumn of 2017. This is maintaining a risk-off tone in the markets. We like selling Nasdaq today on intradya pullbacks or continuation breaks!
The risk of a battle between the EU and Italy is looming after the EU signalled the launch of an EDP on the deviation of Italy’s 2018 fiscal figures from the EU targets. Statements from the Italian government suggest Italy will not stand down. Sell at market, since we have broken through the continuation point!
In the UK, Nigel Farage's Brexit Party conquered the vote hands down. Now the odds of a no-deal Brexit are higher and GBP may not have priced this in. At the same time, NZD has started off the week with decent strength. We like the odds of playing intraday pullbacks looking for key targets today.
Italian markets came under strong pressure yesterday as Bloomberg ran a story that the EUCommission June 5th will consider a disciplinary procedure over Italy’s failure to rein in debt. An Excessive deficit Procedure is a lengthy process, but if the story is true, the standoff between Italy and the EU that we had expected in the autumn could start much earlier....
Fundamentals have not changed. The speculative flows are violent on cryptocurrencies. Our initial continuation entry was triggered. New Gap Support has also formed, which would be the ideal pullback area. But breakouts can also be considered above the continuation point.
Equities are starting to display a typical risk-off tone. US and China fired words back at each other suggesting further escalation in the trade war, while Mnuchin confirmed there are still no plans to go to China. The US is also looking to announce Huawei type bans on other Chinese intelligence companies. We like the odds of further downside in the...
GBP remains offered given the political volatility in Westminster. The BBC reports there is further pressure on May to resign from her own MPs after one of her senior ministers quit the cabinet (Andrea Leadsom). We have covered much space this week already, but continuation breaks remain favoured.
NZD has been in a strong downtrend on the back of softer local data, a recent RBNZ rate cut, and downturn in global sentiment. More recently, Kiwi has been sinking in sympathy with its Aussie cousin, reminded once again of the rate cut trajectory after the RBA Minutes moved in a similar direction. We like pullbacks towards short-term resistance as entries....
Fundamentals have not changed. The speculative flows are violent on cryptocurrencies. Our initial continuation entry was triggered. New Gap Support has also formed, which would be the ideal pullback area. But breakouts can also be considered above the continuation point.
The US/China trade debate has calmed for the time being. The US may scale back Huawei curbs, delayed the decision on foreign auto tariffs and exempted Canada and Mexico from steel/aluminum tariffs. For the moment, Dax is our favoured index. It is pushing higher with momentum and we favour continuation breakouts.
Conservative members of Parliament agreed on a timetable for a leadership race to replace PM May in June. Boris Johnson confirmed he would be in the running to succeed PM May. After May there will be more pro-Brexit support. GBP has been sold aggressively on higher Brexit probability. Previous target/support has become short-term resistance and that is the...
Fundamentals have not changed. The speculative flows are violent on cryptocurrencies. Our initial continuation entry was triggered. New Gap Support has also formed, which would be the ideal pullback area. But breakouts can also be considered above the continuation point.
Conservative members of Parliament agreed on a timetable for a leadership race to replace PM May in June. Boris Johnson confirmed he would be in the running to succeed PM May. After May there will be more pro-Brexit support. GBP has been sold aggressively on higher Brexit probability. We are approaching a key target today. Fresh entries are better taken on...