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Stochastic OscillatorA stochastic oscillator is a momentum indicator. Trading Strategy: ✔ Recognise the trend: 👉 In a trendy market only open position in the direction of trend. 👉In a range market you can use both buy and sell signals. ✔ Upper band and lower band indicating different things in different market conditions: 👉In a trendy market upper and lower bands show the momentum in the market for example in an uptrend if the indicator is above 80 it means that buyers have the momentum. 👉In a range market, however upper and lower bands showing the overbought and over-sold areas. So, we may go long if we see oversold in a range market and go short if we see a over-bought situation. ✔ Divergence is another important strategy to adopt when using stochastic indicator as a divergence may indicate a trend reversal.
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by apadanaforex
DXY (Dollar Index): Watch Carefully!!! Potential Bullish Move Hey traders, DXY nicely bounced from strong horizontal structure support last week. Taking into consideration that the index remains bullish from the beginning of this year, we remain bullish biased. On a 4H, the price is stuck within an ascending triangle formation. Breakout of its horizontal resistance will lead to a further bullish continuation. In case of a bearish breakout of 91.7, the setup will be invalid.
TVC:DXYLong
by VasilyTrader
8
NASDAQ (NAS100USD) How to Catch the Trend? US100 reached a peculiar confluence zone. We see a perfect match between a major rising trend line and horizontal structure support. On that, the price is currently trading in sideways and formed a horizontal decision range. To catch a bullish continuation, wait for a bullish breakout of its resistance (4H candle close above). Then buy aggressively or on a retest. Goals: 13300 13867 In case of a bearish breakout of the range, further decline will be explected.
ULong
by VasilyTrader
12
Equity sentiment suddenly got very bearish this weekSentiment Is Suddenly Very Bearish on Equities, SPX, NDX, RUT It's been a volatile few weeks of trading as the S&P 500 pulled back a bit (and the Nasdaq pulled back a bit more). Bearish sentiment has grown as the price dipped. The $CPCE equity put/call ratio rose sharply this week to levels last seen in March 2020, near the beginning of the pandemic. The current put/call ratio on the $SPY S&P 500 ETF is 1.5. That's actually better than the average for the last 30 days (1.7), but it's still quite negative. Sentiment is even more negative on the $QQQ Nasdaq ETF, with a put/call ratio of 2.2. The $IWM Russell 2000 small cap ETF is looking even worse, at 2.3. Stock market options traders seem to think that interest rates will continue to rise and the stock market bubble is soon to burst. A lot of the finance wonks I follow on Twitter sold into Friday's strength. However, options on the $TLT 20+ year Treasury bond ETF are sending a different signal. With a put/call ratio of 0.9, bond wonks appear to expect at least a short-term weakening of rates and a rally in bonds from here. $TLT has entered a region of fairly strong technical support: Despite Negative Sentiment, There Are Lots of Fundamental Reasons to Be Bullish To be honest, I think the bearish sentiment in equities may be premature. We've got a fourth vaccine thanks to Johnson & Johnson, with Merck slated to help provide manufacturing capacity. This means we could get all US adults vaccinated 2 months earlier than expected. Plus Merck seems on the verge of getting approval for a Covid therapeutic that could be helpful as well. The savings rate rose during the pandemic, and a lot of that "quarantined cash" will be unleashed on markets as people get vaccinated. Plus, there's more liquidity in the pipeline. We've got another round of $1400 stimulus checks coming. Markets have been worried about a federal minimum wage hike, but it doesn't look like that will happen. The stimulus bill provides $300 billion of support to state and city governments, which removes one of the big risks to the recovery: rising state and local taxes to cover budget shortfalls. Despite rising interest rates, private lending has ticked upward in recent weeks: An uptick in private lending historically has been a confirmation signal that a recession has ended, as I laid out in a previous post: Plus, the jobs numbers this week surpassed analyst expectations by a wide margin, and the ECRI leading economic index has resumed its upward trend. So economic data are signaling continued recovery ahead. The Bear Case Is About Valuations and Rising Interest Rates The bear case would seem to be threefold. First, valuations are very high. Which is absolutely true, but won't necessarily stop them from getting higher. Second, more stimulus means more inflation, which means interest rates could continue to rise. (Inflation is bullish for stocks, but rising interest are bearish. So it's a tug of war between the two, and the question is whether rising interest rates will be enough to rein inflation in. The bears are betting that it will.) And third, there's a technical case for continued market weakness, because $SPY has violated its support trend line. However, I suspect it will establish a new, less steep support line a bit below the previous one. I suppose we could see a 10% correction to the 50-day EMA: But even that feels unlikely to me, given the strength of the fundamentals. I think this correction could prove much more modest than that: Admittedly, I'm not pouring cash into this market at these valuations. But despite rising bearish sentiment, I'm pulling cash out of the market, either. In my opinion, it's likely too early for that, given the fundamentals.
C
by ChristopherCarrollSmith
13
Price drop range comparisons of NDX, DJI. DJI set to outperformThe NDX has been extremely volatile and high-flying in comparison to the DJI. I believe this trend is set to reverse. With the rotation out of the lofty valuations of tech into quality companies with positive cash flow, war chests in their balance sheet to weather any storm and protect their dividend, and P/E ratios that aren't in nosebleed territory. As you can see, every time we've had a sell-off recently, the DJI is affected much less than the NDX. As you can see on the 1-week chart, the NDX is flying high above the SPX and the DJI. This outperformance is not sustainable. As the 10-year treasury passes the average yield of the SPX is 1.5%, the average yield of the DJI is 2.4% will look safer and more attractive as investors seek income since returns will be harder to squeak out. The DJI should begin to outperform both the SPX and the NDX. Price range in blue= NDX Price range in gray= DJI 1-day chart with price drop range comparisons of NDX & DJI 4 hour charts with price drop ranges: with out 15-minute chart with price drop ranges This is not investment advice, just a theory. Do your own due diligence and gauge your risk properly.
TVC:DJILong
by EBITDAtiger
2
LUFTHANSA AG (LHA): BAIL or FAIL Being the honorable member of DAX index and gigantic employer, Lufthansa is too big to fail. Though its stock prices dropped significantly, the enterprise will receive as many bailouts as needed. It's not a mom & pop shop that went bankrupt during the lockdown, that one is much more important (hope you feel that irony). For us, however, its cheap price gives a perfect chance to make a great investment decision. "Buy low, sell high" remember?
SWB:LHALong
by VasilyTrader
9
DOLLAR INDEX (DXY) Trend Reversal & Strength hey traders, it looks like we finally see a confirmed bearish trend violation and reversal on DXY. from 6th of January, we see the zigzag movement with 89.1 initial low, equal high retesting the December's lower high, higher low and finally a new higher high higher close on a daily yesterday. it is a classic price action reversal formation. now in the mid-term, I expect more strength to the dollar. The closest resistances to look at: 91.75 92.15
TVC:DXYLong
by VasilyTrader
11
DXY (Dollar Index): Signs of Weakness hey traders, it looks like dxy returns to a bearish trend again. after a quite impressive growth from 6th January, yesterday the price broke below a support line of a bearish flag pattern on 4H. that breakout may be a perfect trigger for the initiation of a new bearish wave. for now, I expect a continuation to 90.0/89.25 levels, but we must remember that the global trend is bearish and indexes may continue falling in value. please, support this idea with like and comment! thank you!
TVC:DXYShort
by VasilyTrader
9
DXY Analysis ahead of the announcement of the stimulus. President-elect Joe Biden will make a speech later today to outline plans for a huge fiscal stimulus bill to help the US economy recover from the pandemic. Reports suggest the new fiscal stimulus could be worth anywhere between $1.3 trillion to $2 trillion and include direct payments of up to $2000 to hard-hit citizens. A $900 billion package was recently agreed by Democrats and Republicans, but Biden has described this as a down payment ahead of his inauguration. That included direct payments of $600 to citizens after Democrats were unsuccessful in their attempts to raise the figure. Having now won control of Congress following the Georgia run-off races, Biden is expected to push ahead with a sweep of Democrat policies, but he is keen to win the backing of Republicans to build on the bipartisan mood that has struck both parties during Donald Trump’s final days in office. That may dissuade Biden from trying to ram through too much straight away and approach it in phases to garner the support of both Democrats and Republicans. He is expected to focus solely on coronavirus-relief measures at first and not to mix it with other policies to do with matters like healthcare or infrastructure spending, which he is expected to pursue later. On top of larger cheques, reports suggest Biden could look to increase support for minority groups and billions of new funds to accelerate the country’s vaccination programme. State and local governments, which also fund the likes of schools and hospitals, are also set to receive more money. Impact On The Economy Biden’s push for a big new stimulus package comes amid a rapid deterioration of the economy under the strain of a third wave of the coronavirus. The economy shed 140,000 jobs in December, a steep decline just as U.S. covid-19 deaths hit an all-time high. Biden is also likely to push for a larger legislative effort later in 2021 after the initial stimulus package. That effort is expected to focus on spending trillions of dollars on infrastructure and clean-energy jobs. The former vice president additionally has pushed for significant overhauls to America’s health-care system, something that could also be wrapped into legislation later in the year. Biden is attempting to bring back hope in the economy, hence winning investors confidence. In the markets, the bigger the proposal’s price tag, the better for equities and the U.S. dollar. There has been a paradigm shift lately in dollar dynamics, where promises of astronomical spending now boost the reserve currency as the rosier outlook for growth overshadows deficit concerns. If all the spending supercharges the economy, the Fed could reign in its generosity.
TVC:DXYLong
by abel11
19