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Gold Rush with AI: Analyzing a Bullish TrendIntroduction G old has always been an intriguing asset for investors, often seen as a store of value and a hedge against economic uncertainty. In this analysis, we take a closer look at a chart showing the price of Gold (OZ) on the Gold-USD market compared to USD ($) to identify trends and potential scenarios for gold's future price movement. So, let's dive into the chart and explore the dynamics of the Gold market. Bullish Momentum T he chart reveals a powerful bullish trend in the Gold market, culminating in a local bullish double top pattern on October 27 and October 31, with the price reaching around $2010. This bullish momentum signals a robust demand for gold, driven by various factors like geopolitical tensions and economic uncertainty. A Double Top Formation T he double top formation represents a potential turning point in the market. While there are no immediate signs of a bearish reversal, the double top could trigger a consolidation phase. This consolidation might occur within the price range of $1952 (support line) to $2010, forming a support zone indicated by the blue rectangle on the chart. T he consolidation period is depicted by the white arrow on the chart and could extend until December. This consolidation isn't necessarily a sign of weakness but can be seen as a sign of increasing investor interest and strengthened buying power. Investor Opportunity A prolonged consolidation provides an opportunity for both new and existing investors to consider buying into the market. It allows gold to gather sufficient funding, and as long as the investor sentiment remains positive, there's a chance that the price could break the resistance zone (purple rectangle on the chart) between $2002 and $2010. Further Upside Potential E ven if the price breaks through this resistance zone, it doesn't necessarily mark the end of the bullish trend. It could trigger further consolidation or higher resistance zones as potential targets. The next significant resistance zone to watch out for is between $2055 and $2065. Bearish Concerns H owever, if gold falls from the support zone, it raises doubts about the sustainability of the bullish trend. In such a scenario, the next support zone could be around $1904, where a possible bearish reversal might be considered. Volume and Investor Sentiment A part from price and technical indicators, the chart analysis also considers trading volume. In October and November, the volume has been consistently high, suggesting a global need for diversification with gold in portfolios containing indices and other assets. Investors continue to view gold as a valuable precious metal for diversifying complex portfolios, particularly in uncertain economic times. Key Drivers for Gold Investment S everal factors are driving investor sentiment towards gold. These include concerns about high inflation in national currencies, increasing oil prices, ongoing geopolitical conflicts, and the long-standing belief that gold tends to rise during times of war. Conclusion W hile this analysis provides insights into the current gold market trends, it's essential to remember that investing in gold is a long-term strategy. The precious metal serves as a hedge in complex portfolios and aims for long-term appreciation rather than fast gains. P lease note that this analysis is not investment advice, and historic results do not guarantee future results. Always conduct your research and consider various safety measures when making investment decisions. Kind regards, Ely Disclaimer: This content is for informational purposes only and does not constitute investment advice or an endorsement of any specific investment. Trading involves substantial risk and is not suitable for every investor. You should carefully consider your financial situation and consult with your financial advisor before making investment decisions.
TVC:GOLDLong
by Elysian_Mind
15
Metals Setup Apex "V" (PANIC) Bottom - Rally Will ContinueGold and Silver are setting up a nearly perfect deep "V" bottom after a bout of PANIC selling over the past few weeks. This sets up a move for Gold to rally above $2250 and Silver to rally above $28.50. Ultimately, I believe Gold will exit the Setup Phase and peak in the next phase, the Breakaway Phase, above $2450. Silver will follow with a rally to levels above $31 as it moves away from the Setup Phase and peaks in the Breakaway Phase. These are big moves for Gold and Silver - 15% to 25% or more. This also sends a clear message to the general/global markets that traders are hedging the uncertainties of the conflicts and the central bank/global economy credit issues. I see the next 14 months, before the US POTUS elections (Nov 2024) and possibly a few months beyond, as very concerning for the US/Global markets. Where will the economic growth come from to drive expansion? China is contracting. Asia is contracting. Europe is contracting. The US is still operating reasonably well, considering much higher interest rates. Canada is still holding up okay, considering an extremely over-inflated asset bubble. How long before something breaks if the US Fed decides enough is enough and moves to PAUSE rate hikes? I guess we won't see a pause in the US Fed until possibly May/June 2024. And that will drive a fear/hedging/panic cycle where USD assets and precious metals become an effective hedge against risks. Pay attention. This next move in metals should be very explosive.
COMEX:GC1!Long
by BradMatheny
Execute Short Straddle at current strikeNSE:NIFTY After the rally from 19300 range till 20000 nifty is now started its consolidation. This is the right time to execute the short straddle for the 21 Sep Expiry. Options Short Straddle: Sell 2100 CE & 2100 PE - 21st Sep (Straddle) Buy 19900 PE - 21St Sep (Hedge Trade) Buy 20300 CE - 21st Sep (Hedge Trade) Max Profit - 7,128/- Max Loss - 2,873/- !!! Caution !!! - Must execute these trades on 15th before 10.00 AM Must Exit all the trades at the same time. on 21st Sep by 3 Pm. Please check the below link for the graphical representation of the stratergy. https : // sbull.co/s/DNmBYjyo / Follow me and message me for any discussions.
NSE:NIFTY
by karthik0712
Hedging in Forex When done correctly, hedging is a great method to help protect your position(s) against big price fluctuations. This post will delve further into hedging and discuss how you can use it to not only protect your position(s) but also how to potentially use it to your advantage in turning losing positions into profit-taking opportunities. What is hedging in Forex? Hedging implies protection against the risk of future price fluctuations for assets arranged in advance. It is a financial strategy used to protect a trader from losing trades resulting from adverse moves in currency pairs. Hedging is used in almost all types of financial industries; however, it has a more specific form in the foreign exchange market. Direct Hedging Direct hedging in forex normally takes place by the trader opening a position in the opposite direction of an existing trade. This is done in order to reduce the risk exposure of the existing position. Normally, the trader or investor carries out his or her risk analysis and quantifies the risk levels involved before instituting both the original and hedged trades. They would subsequently be responsible for controlling the level of change in their positions that takes place due to the ensuing price volatility of the market instrument(s) being traded. For example, let's assume you open a sell position on GBPUSD, and while your position is running, the market suddenly goes up, so now your open P&L (profit and loss) number is going down. Let's continue to assume that you are still confident in the original sell position; however, you are wary that the market is likely to experience adverse price movements. To prepare for this, you open a buy position to fully hedge the trade. In a fully hedged trade, the P&L number will not move because there is both a buy and sell position open. Now that the trade is fully hedged, if the market continues to go up, the trade's buy position will continue to profit while the sell position will continue to take a loss. However, if the market reaches a resistance level, you can exit the buy position at a profit and hold the original sell position while the market comes back to your original entry point. While many traders would close out the initial position and accept any losses, a direct hedge would allow you to profit from the second trade, which would avoid the loss. To get a further understanding, let's see this in the example below. Hedging with multiple currencies Another strategy would be for a trader to utilise two different currency pairs that are highly correlated, either in a positive sense or a negative sense. For example, a long trade can be opened for the USDJPY currency pair, and a short trade can be opened for its USDCHF counterpart. Because it is highly likely that both pairs move in the same direction due to the USD factor, any drawdown or loss on one of the trades would be made up for by gains and profits in the other trade. Though the risk is usually mitigated with this hedging strategy, for this method to work successfully with different currency pairs, it is essential that the trader does his or her research on both pairs involved in the potential hedge to ensure that the correlation is high between them through their respective movements in the market. This is to guarantee that when market volatility does ensue, whether it is based on a news update such as a major central bank meeting or some other unexpected event, then the two current pairs in question will move as expected in the market. Hedging with commodities Commodities are popular to hedge with because they are usually seen as safe haven products. Gold is usually the go-to product hedge for traders who especially want to protect themselves from rising inflation. When inflation becomes uncontrollable, gold prices tend to rise. Gold, in contrast, is a hedge against a lower US currency. In other words, gold prices and the US dollar tend to have an opposite relationship. When gold prices rise, the US dollar tends to fall, and vice versa. Gold has long been seen as a form of currency, which is why it's a strong hedge against a dollar crash or hyperinflation. Another popular commodity to hedge with is oil. Some currencies are particularly vulnerable to the impact of oil prices (these forex pairs are commonly known as 'commodity pairs'). Both the Canadian dollar and the Australian dollar are notable examples. The price of oil and the exchange values of the Canadian dollar and Australian dollar usually have an inverse relationship. When the price of oil rises, the USD/CAD and AUD/USD exchange rates tend to fall, and vice versa. You can use the oil hedging approach to hedge your USD/CAD and AUD/USD trade risk in this scenario. For example, you can go short AUD/USD and long oil as a hedging position, and vice versa. Advantages and Disadvantages There are significant advantages and disadvantages to engaging in hedging activities in forex: Advantages The biggest advantage is that it protects the trader against unpredictable price movements. If your account experiences high volatility or unexpected price swings, your hedged position may be able to help protect the total worth of your account by generating a profit on that position, which can help stabilise your account balance until the other position gains value. In other words, hedging gives the opportunity to profit on a position that would maintain the account balance during a volatile or unexpected price swing before a reversal takes place, leading to other positions going back to their original value. When hedging is incorporated properly, your risk-reward ratio is better within your control. This is because a hedge acts as a helpful counterbalance to your other position(s), thus providing support in the form of price gains even when your other position(s) are moving in the opposite direction. Hedging can broaden your portfolio's diversification. If you are hedging multiple products, this can spread out your open positions to reduce the chance of a single variable or event wiping out all of your positions. Disadvantages On the other hand, a hedge can also very likely reduce the potential for profit. If a trader has an open position in profit and the price continues to move in a certain direction after the trader implements a hedged trade in the opposite direction, then the hedged trade would be at a loss, nullifying the gains made by the original trade after the hedged trade was opened. Additionally, traders must be aware of additional trading costs such as commissions and overnight swap charges (if the hedge is held overnight). To add, hedging is not an ideal practice for beginners in trading, as it requires the proper practice and education needed to handle opposing trades at the same time in what could be an unfamiliar market, reflecting both the numerical and positional complexities of the hedging mechanic. There is also the risk of hedging, resulting in increased losses to the trader's account due to some hedged trades not being correlated directly to initial positions; this could be because of leverage, margin, or other reasons. This has the potential for huge drawdowns in the overall position when price volatility ensues. Another disadvantage is that, unfortunately, not all forex brokers or trading providers offer the hedging function to their traders, so traders will usually have to inquire if this function is possible before proceeding to trade with the respective broker or provider. While you can make money from hedging, it is very important to note that before that, forex hedging should first be about mitigating risks. A trader's primary aim when hedging should always be to protect their capital against adverse moves in the currency markets. Hedging can also be very complex and costly, especially if the trader does not have much experience with this trading method, so it is not recommended to use this method in a live trading environment until you understand the mechanics of hedging, as it requires a great deal of planning and understanding. BluetonaFX
Education
by BluetonaFX
4
GNS Consolidated and Resting from Big Move LONGOn the 30-minute chart, I see GNS as a Bullish Pennant on a high flag pole in the big move yesterday with consolidation now. It is high in the VWAP bands and so at risk for a reversal to the mean. Pennants more often than not continue upside. To hedge, I have set two lines. If the price goes over the green line a buy stop long will trigger into a market price. If the price drops below the pennant height, a sell stop will trigger the short trade. One trade is on the other will not execute. Ask if you want my suggestion as to stop losses and targets. (EDIT - On the chart it is a flagpole not a flap pole !)
AMEX:GNSLong
by AwesomeAvani
ACB Aurora Cannabis Long SetupOn the 4H chart ACB has dropped out of a head and shoulders pattern list winter with high volume into a downtrend with lower volume now into support / demand as shown by the Luxalgo indicator. The anchored VWAP is also trending downward with support at the minus 1 and minus 2 standard deviations. The volume profile shows the majority of the recent share exchanges have been at the $0.65 per share area. If price rises above that POC line of the profile, ACB will get the attention of new buyers while short sellers will begin to cover thus causing buying pressure and momentum. I will buy a sizeable quantity for perhaps $1-2K shares once price gets over that POC line. Prospective buyers will consider this to be a reversal confirmation. I will be one of them. The first target is the volume void at $0.79 or about 25% with the other target being one standard deviation above VWAP at about $.90. Stop loss will be set at $0.05 below the entry. For profit insurance I will hedge with a single put option contract at a strike of $0.70 with a 90-120 DTE to diminish risk at a minimal cost.
NASDAQ:ACBLong
by AwesomeAvani
GOLD | Interesting facts about GoldOANDA:XAUUSD 1.Gold is a 'noble' metal, meaning that it does not rust or lose its shine. Other noble metals include ruthenium, rhodium, palladium, silver, osmium, iridium, platinum, mercury, rhenium and copper. 2.Gold is the only yellow metal. All other metals darken or turn a yellowish colour after they have oxidised or reacted with other chemicals. 3.Gold is one of the heaviest and densest of all metals in the Periodic Chart; a cubic foot would weigh more than half a ton. 4.Pure gold will melt at 1064.43° and boils at 2856.1°. Even at normal temperatures gold is extremely soft. One gram of gold can be flattened down to a square meter sheet, which is so thin that light passes through, and because of this it has been used as a protective film on visors in space suits 5.Odourless and tasteless, gold is not toxic - and flakes may be eaten in foods or drinks. 6.Gold is far rarer than diamonds but is only the 58th rarest earth element. 7.It is estimated about 160,000 tons of gold have been mined throughout history. 8.In 2018, China was the world leader in gold mining production. Second was Australia, Russia third, US fourth and Canada fifth. 9.The largest gold nugget is the 'Welcome Stranger' mined in Australia in 1869, weighing in at a colossal 173 pounds (that is nearly 78.5 kilos). 10.The first gold coins were produced in Lydia between 700 - 650 BC. They were made from electrum, which is a naturally occurring alloy of gold. 11.The Swiss Franc was the last remaining country to peg its currency to a value in gold. It became a fiat currency in 1999. 12.The Perth Mint in Western Australia cast the largest ever coin - weighing one tonne and measuring 80 centimetres (31.4 inches) in diameter. 13.New York’s US Federal Reserve Bank is reported to hold 25% of the world's gold reserves. 14.Gold is frequently used as a safe haven asset in times of economic turmoil or geopolitical uncertainty. 15.Gold has historically had a weak correlation to movements in the financial markets and is frequently used as a hedge against inflation.
OANDA:XAUUSDEducation
by INVESTRONE
Biggest Profit Potential of the WeekThe Bearish Shark Pattern has been completed on the Daily Chart (right), but it will be crazy to trade off the Shark Pattern on the Daily Chart. A better way is to engage it off the 1-hourly chart(left) using the Bearish Crab Pattern at HOP at retest with an RSI Divergence. Hooooooo! It's a mouthful, but that's what I need to engage the trade. Even if it sounds like a perfect heist, there's a chance that we get multiple stop-out before hitting our first profit, but that's the trade I'm willing to take. This GBPAUD trade almost synchronises with my GBPJPY trade, links at the bottom of this TradingView post. The only thing is that the trade is traded in an opposite direction, which creates a perfect hedge on the UK Pound. As much as my brain loves to think 1 of them will hit stop-loss, not only does it create a perfect hedge, but I do see trades like these worked out. That is why I'll trade once the market confirms my entry, regardless of what other traders might think.
Short
by RaynLim
6
Commodities are more than just an inflation hedgeIn 2022, we saw some of the highest levels of inflation in the US and Europe since the 1980s (Figure 1). Not only had central banks left the punch bowl at the party for too long, but many supply shocks had sent prices rising sharply. The Ukrainian war, for example, sent energy and food prices higher. Adjusting complex supply chains that showed their weaknesses in the COVID-19 pandemic has also contributed to pricing pressure. In 2021, when prices were rising on the back of monetary and fiscal stimulus, cyclical assets like equities performed very well. But as the punch bowl was belatedly removed in 2022, with a monetary tightening cycle that was the most aggressive since the 1980s, and input costs rose (think higher energy and labour costs compressing corporate profit margins), there was very little place for refuge. US equities were down 18%1, global equities were down 20%2, bonds were down 16%3, Bitcoin Index was down 64%4 and real estate was down 24%5. The one standout asset class was commodities6, which was up 16%. Commodities and gold as an inflation hedge European professional investors believe broad commodities (48%), gold (41%) and industrial metals (40%) are the best instruments for hedging against inflation according to a recent survey we commissioned7. We agree that commodities are one of the best hedges for inflation. Looking back at long-term historic data, we can see that commodities are one of the most inflation-sensitive assets classes. We separate inflation into ‘expected’ and ‘unexpected’ components. We proxy ‘expected’ inflation using the T-Bill interest rate. ‘Unexpected inflation’ is the 'realised inflation rate' minus the T-Bill rate. Very few assets rise with unexpected inflation. Commodities and gold are clearly in a category of their own here, with industrial metals excelling as an unexpected inflation hedge. To stress, the inflation we have been living with in the past 2 years has been largely of the unexpected nature8. Broad commodities also do well in hedging against expected inflation. Only US Treasuries have a sensitivity to expected inflation as high as broad commodities. So, as inflation surprises temper, we could find commodities remain an important hedging instrument. Moving to the next phase of the business cycle In 2021, when monetary and fiscal conditions were loose, we saw very strong economic growth and high inflation. That was the goldilocks scenario for commodities. Looking back at data since 1961 (Figure 3), we can see that commodities have returned on average 43% in high inflation and strong growth environments. Gold has returned 37% over the same period. In 2021, commodities returned 27%. In 2022, when developed world central banks started to tighten monetary policy, growth faltered while inflation remained high. Looking back at data since 1961, we can see that in high inflation/low growth environments, commodities do not do so badly, with an average 11% growth, which is on a par with Treasuries. In 2022 we know that commodities outperformed Treasuries by a long stretch (+18% vs. -10%). Historically, in high inflation/low growth environments gold also performs positively. In 2022, gold was about flat, after facing extraordinary headwinds from a strong US dollar and rising bond yields. Looking to 2023, we believe that inflation will remain stubbornly high (at least above 3.5%, the threshold we use for ‘high’ in this analysis). That means we could be stuck in this phase of high inflation/low growth period for longer. We stress that is not bad for commodities. In fact, with the US dollar no longer appreciating, broad commodities and gold have one headwind removed. With US bond yields appearing to have peaked, gold also has another headwind removed. Commodities are not just an inflation hedge While inflation has been a key concern for investors over the past 2 years, and will continue to be an important consideration for the coming year, we believe that there are more reasons to consider allocations to commodities than just inflation. Commodities generally have a low correlation with most other assets. That makes it a nice asset to diversify with. In fact as we argue in The Case for Investing in Broad Commodities, these low correlations hold even in times of crisis (that is, when US equities are falling more than 5%). On average, in all the months since the 1960s where US equities have lost more than -5%, commodities have lost -0.65%. In all the months where US equities gained more than 5%, commodities gained 1.13%. This compares to -7.8% and 7.5%, respectively, for US equities themselves. So, while commodities are cyclical (that is, they tend to lose and gain broadly at the same time as equities), the amplitude of such gains is significantly more muted. So, any investors fearing further downside to equities, could hedge with commodity exposure. Positioning for the future We believe we are in a time of profound change. The energy crisis of 2022 laid bare the need for Europe to wean itself off Russian energy sources. REPowerEU, the European Union’s plan to reduce reliance on Russia, accelerates an energy transition to renewable energy sources. We believe that will be metal demand positive. An electrification of energy production (that comes with a move to renewables instead of combusting hydrocarbons) will require more distribution and transmission cables, more energy infrastructure, and more batteries. This trend will be industrial metal positive. With most nations across the world behind in their climate change targets, we believe there will be an acceleration in the adoption of decarbonising technology as they play catch-up. At the same time, an underinvestment in traditional energy sources has left oil and gas markets (which the world is still highly reliant on) very tight. Commodities provide the essential materials to manage this transition and are likely to benefit. Conclusions As many professional investors have identified, commodities, gold, and industrial metals are typically excellent tools for inflation hedging. Commodities are a valuable asset for portfolio diversification in general. Commodities may play an increasingly important role in hedging against climate risk and industrial metals demand, in particular, is likely to benefit from the energy transition megatrend. Sources 1 S&P 500 equity total return index (31/12/2021 to 30/12/2022) 2 MSCI ACWI total return (31/12/2021 to 30/12/2022) 3 Bloomberg global aggregate credit total return (31/12/2021 to 30/12/2022) 4 Bloomberg Galaxy Bitcoin total return (31/12/2021 to 30/12/2022) 5 FTSE EPRA Nareit Global REITS (31/12/2021 to 30/12/2022) 6 Bloomberg Commodity Index Total Return (31/12/2021 to 30/12/2022) 7 Pan European Professional Investor Survey, September 2022, 600 respondents, conducted by Core Data Research. 8 For example, the Citi Inflation Surprise Indicator, which measures whether inflation readings have been coming in above or below consensus expectations (calculated in a 3-month rolling window), has been positive for 28 consecutive months to November 2022 (i.e. inflation has surprised to the upside) for the US and UK and 24 consecutive months for the Euro Area.
CBOT:AW1!
by aneekaguptaWTE
Gold Portfolio UpdateGOLD has reached my short-term target of $1,925.62 selling 70% of my accumulation averaging $1,679.25. Similarly, the VanEck Junior Gold Miners ETF (GDXJ) reached my short-term target selling 50% of my accumulation averaging $27.96 GOLD: 14.63% profit of 10% portfolio equity GDXJ: 44.83% profit of 5% portfolio equity I am keeping liquidity in Gold as my long-term outlook remains bullish and to hedge against the poor macroeconomic environment. The reason for the large profit-taking include: - Major resistance in both charts (GOLD & GDXJ) - Momentum indicator over-bought (GOLD & GDXJ) - US10Y in major resistance: -DXY in resistance and will rise once equities will stop rising Overall, trimming on gold because of great returns. My long-term outlook remains very bullish for gold and gold miners. I believe demand for gold will continue to rise in the long term because of its material and hedge against poor international economics (deglobalization, uncertainties, recession, slow growth,...) For personal recording
G
by ssavi
Signs before Tesla crashContent: i. Early signs before its crash ii. These signals are applicable to others markets iii. How to hedge Tesla? This method can be applied to any other markets. In segment 2, I demonstrated how you do that in the Nasdaq index. You can email me your case study on other markets with similar behaviour, we can check with each other. E-Mini Nasdaq Minimum fluctuation 0.25 points = $5 1 point = $20 10 points = $200 100 points = $2,000 1,000 points = $20,000 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. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
NASDAQ:TSLAShort
by konhow
1
SPY DEC 30 400/ JAN 6 397 DIAGONAL CALLWe've been selling off since December 13th so this strategy is going to be used more as a hedge just in case we get a year end rally to the upside. It's been basing the last five days in this 380 area and may be setting up to push higher in the short term. NO stops, I'll be set up for max loss and less than 1% risk of entire portfolio. My target of 400 was determined more as a psychological level. End of the year even number. It may not get there by end of next but I'll watch this throughout the week next week. If this decides to go lower, I'm set up for max loss so I'll just move on to the next trade. If this stays in the 380 area all next week I'll have the 397 strike until the 6th. If this goes higher, I'll close this out once it get tos 400. It may not want to get to 400 by next week, maybe 395? I'll have to watch this throughout the week next week to see if I wanna close this before. If this gets to 400 by the 30th, I'll close out the entire combo and move on. If this stays below 395 by Dec 30th, I'll want to hold on to my 397 strike until Jan 6th.
AMEX:SPYLong
by MMOTA_
1
How To Prepare For Rising PricesA blog article discussing how inflation is impacting family budgets, what it means for household budgets in the US, and some basic strategies people can use to help manage by RobinhoodFX Robinhoodfx. Intro In recent months, we've seen inflationary pressures building in the U.S. economy. Prices for key commodities like crude oil and agricultural products are rising, and wages are starting to creep up as well. All of this points to one thing: higher prices for consumers in the months ahead. How can you prepare for rising prices? Here are a few tips: Know where your money is going. Track your spending for a month or two so you have a good understanding of where your money goes each month. This will help you identify areas where you can cut back if necessary. Make a budget and stick to it. Once you know where your money is going, it's time to create a budget that ensures you're spending wisely. Be realistic in your assumptions about inflation and make sure your budget can withstand a bit of financial volatility. Invest in yourself. Inflation erodes the value of assets like cash and bonds, so it's important to invest in assets that hold their value or even increase in value over time. One great way to do this is to invest in yourself through education or job training that will make you more valuable in the workforce. Stay disciplined with your spending. When prices start rising, it's tempting to spend more freely since "everything is going up." But if you want to stay ahead of inflation, it's important to keep your spending under control and focus on essential purchases only What is Inflation? Inflation is the rate of increase in the price of goods and services over time. It is measured as the percentage change in the consumer price index (CPI) or producer price index (PPI). Inflation can be caused by a variety of factors, including excess money supply, government spending, and global factors such as commodity prices. Excess money supply is when there is more money in circulation than there are goods and services to purchase. This can happen when the Federal Reserve prints more money or banks lend out more money than they have on deposit. Government spending can also cause inflation if it exceeds tax revenue. When the government spends more than it takes in through taxes, it has to print more money to cover the deficit. This increases the money supply and can lead to inflation. Global factors such as commodity prices can also affect inflation. For example, if the price of oil rises, this will likely lead to higher prices for gas and other products that use oil as an input. How Do Inflation Rates Affect Prices? Inflation rates can have a significant effect on prices, particularly over the long term. When inflation is high, prices tend to rise, and when inflation is low, prices tend to fall. In general, higher inflation rates mean that consumers will pay more for goods and services, while lower inflation rates mean that they will pay less. How Does Inflation Affect Prices? Inflation is the rate at which the prices of goods and services in an economy increase over time. The main drivers of inflation are changes in the demand for goods and services, and changes in the supply of money. When there is more money chasing after fewer goods and services, prices go up. The opposite happens when there is less money chasing after more goods and services; prices go down. What Does This Mean for Consumers? For consumers, inflation can have both positive and negative effects. On the one hand, rising prices can erode the purchasing power of their incomes, making it difficult to afford basic necessities or maintain their standard of living. On the other hand, inflation can be beneficial if it leads to higher wages and salaries; as long as wages grow at a faster rate than prices, consumers will be better off. What Does This Mean for Investors? Investors need to be aware of how changes in inflation might affect their portfolios. For example, investments in Treasury bonds become less attractive when inflation is high because the fixed payments on these bonds lose value relative to other investments that offer higher Rising Costs: Why are They Happening Now? There are a number of factors that are causing prices to rise in the United States. The most significant factor is the increasing cost of labor. Wages have been rising steadily for the past few years, and this is putting pressure on businesses to raise prices in order to cover their increased costs. Other factors that are contributing to rising prices include the increasing cost of raw materials, such as oil and gas, as well as transportation costs. These costs are being passed on to consumers in the form of higher prices for goods and services. inflation is also playing a role in driving up prices. The Federal Reserve has been keeping interest rates low in an effort to stimulate economic growth, but this has led to higher inflationary pressures. As prices start to increase, Americans will have less purchasing power and will be forced to cut back on spending. The rising costs of health care are also putting upward pressure on prices. The Affordable Care Act has led to increased demand for health care services, which has driven up prices. In addition, the aging population is requiring more medical care, which is also contributing to higher costs. All of these factors are leading to rising prices across the economy. American consumers will need to brace themselves for higher prices for goods and services in the months and years ahead. How Everyday Consumers Can Best Prepare for the Potential Impact There are a few things that everyday consumers can do to best prepare for the potential impact of rising prices in the U.S. First, it’s important to be aware of what’s happening in the economy and how it might affect your finances. Second, make sure you have an emergency fund in place in case prices go up unexpectedly or you lose your job. Third, consider ways to cut costs so you can save money. Finally, invest in yourself and your career so you’re prepared for any changes that might come. The Ramifications of Higher Unemployment and Lower Employment Rates Unemployment and lower employment rates have a number of ramifications. Perhaps the most obvious is that fewer people are employed and earning an income. This can lead to less spending, which can in turn lead to less economic activity and slower growth. Additionally, when people are unemployed or underemployed, they may have difficulty meeting their basic needs, which can lead to increased stress and anxiety levels. This can also result in social problems such as crime. Additionally, unemployment can have a ripple effect on businesses, as they may have to lay off workers or cut back on hours/wages. Lastly, high unemployment rates can lead to political instability. Solutions to Fighting Inflation Inflation is a major concern for Americans and it is on the rise. Luckily, there are steps that you can take to prepare for rising prices and protect your finances. One of the best ways to fight inflation is to invest in assets that will hold their value or appreciate over time. This includes investing in stocks, real estate, and precious metals. These investments will increase in value as the cost of living goes up, giving you a buffer against inflation. Another solution to fighting inflation is to create a budget and stick to it. This will help you keep track of your spending and make sure that you are not overspending on items that are likely to increase in price. Additionally, saving money each month will give you a cushion to fall back on if prices do start to rise rapidly. There are many other solutions to fighting inflation, but these are two of the most effective. If you are concerned about rising prices, take action now and start preparing for the future. Conclusion If you're worried about rising prices in the United States, there are a few things you can do to prepare. First, start by evaluating your spending and see where you can cut back. Then, make sure you have an emergency fund in place so that unexpected expenses don't throw off your budget. Finally, keep an eye on inflation rates and invest in assets that will hold their value over time. By following these steps, you can protect yourself from rising prices and maintain your financial stability.
FOREXCOM:XAGUSDEducation
by RobinhoodFX
Theta Machine - 12/07/2022THETA MACHINE UPDATE No New Trades Today I want VIX and IV to go higher so we can collect extra premium...if not tomorrow, by Friday I will increase the cost basis to +500, and Theta will be around $150/day. Overall POP = 84% POP = Probability of Profit *Next Week volatility can spike as we will have CPI (Dec 12) and FED (Dec 13). With that said, I will probably hedge with Micro Futures. *Quick TIP if you want to hedge your portfolio> +50 Delta = 1 /MES (Micro) +500 Delta = 1 /ES (Mini) My Delta Beta Weight now is around 100, so In order to hedge I need to Sell 2 Micro Futures (2x /MES)
CME_MINI:ES1!
by IronMan_Trader
1