Bitcoin Is Trading At The Support As Stocks PullsbackHey traders
I this video I will take look at NVIDIA which I think it can be moving into a correction and can possibly be headed down for deeper prices. So if today major stocks indicies will have second red day in a row, then possibly next week there can be more risk-off. In such case I think its better to wait on any long ideas on cryptos (short-term), and wait on much better timing for potential long entires, which can be maybe after summer, or during elections when normal markets tend to be in bull run. Additionally, any rate cut later this year can be alos supportive for stocks and other assets.
When I look at bitcoin, I think that 50k is very good potential support; if it gets there.
Have a nice weekend.
Grega
Risk-off
SP500 Makes "Failure" Break Higher; Now Short-term Weakness SP500 is making a sharp reversal, so it appears it was failure break higher after that overcrowded trade when everyone expected 4200 to be a major breakout point for the bull run. We also see USD still in bullish mode which can extend gains much higher now if stocks will be in risk-off mode. Looking at the SP500 price action, we see price falling below the trendline support so it seems that five wave rise from the March low is finished and that minimum three wave drop is in play. Big important level can be 4060/4070 which has been retested a few times in the last two months. Below that we have 4k, near 61.8% Fib.
Nasdaq NQ hovering @wma200/mma50/June low zone;Diamond again?Nasdaq, si,liar to SPY has made 2 diamond patterns in May & June leading to a reversal with positive Rsi divergence.
Could it be repeating similar set-up this Sept-Oct?
It is currently hovering around the mma50+wma200+June low zone. Sometimes prices break a little below the diamond pattern first eating away the cut-losses before a reversal. If NQ makes another new low after Thursday’s economics data, it will be bad news.
Not trading advice
BTC returns to mean/pivot@19500;Bollinger squeezing for big MoveBTC keeps returning to the pivot line at 19500 which also acts as a support. It is also barely holding the
base of the triangle as support. Bollinger Band is squeezing for a big move soon. As for now, the Head & Shoulder pattern neckline is still not yet broken, suggesting much lower prices if the neckline breaks.
We just have to wait which way it breaks. If current double support holds, we may be seeing 22k next.
If SPY continuous to break below the June low this week after major economic data on Thursday, there is a big chance BTC support will also fail. Then the17k to 16K zone is the next support.
Not trading advice.
Risk-Off Rotation Crypto/Tech -> UtilitiesFundamentals:
+ Exposure to "Risk-Off" Utilities.
+ Biggest E.U nuclear power operator. (52% of E.U Nuclear power comes from plants run or used by EDF)
+ Need for upsizing given the Russia-Ukraine commodity constraints.
Opinion:
EDF is undervalued at its current price. As the situation with Russia deteriorates, as an energy partner; a "Risk-Off" idea, presents it-self. During times of recession, stagflation, cost of living crisis compounded by government's inability to further print to ease pressures due to the mishandling of the Covid crisis. The idea of hierarchy of needs is paramount. In difficult times, one may not pay rent, but he will pay for energy. Given there is no industry without energy, the idea behind green/clean at the cost of longer time frames; becomes prohibitive.(Main reason why E.U decided to consider Nuclear "Sustainable". www.dw.com) Instead, one can expect France; decades of expertise in Nuclear power generation to be highly in demand. It be by consulting on building of Nuclear power facilities across the E.U block or simply due to the sharing of market rated energy production via the EEX across the block.
As the FED continues tightening, sovereign debt figures keep rising. Taiwan and Ukraine are now hotspots for defense contractors. Within the Risk-Off context and taking into account the military sovereign debt money printer is reaching new highs; exposure to military contractors may be a good risk-off idea.
This is not intended or made to constitute any financial advice.
Notes on how I personally use my charts/NFA:
Each level L1-L3 and TP1-TP3 has a deployment percentage. The idea is to flag these levels so I can buy 11% at L1 , 28% at L2 and if L3 deploy 61% of assigned dry powder. The same in reverse goes for TP. TP1: 61%, TP2:28% and TP3:11%. If chart pivots between TP's, in-between or in Between Sell levels these percentages are still respected. I like to use the trading range to accumulate by using this tactic.
Just my personal way of using this. This is not intended or made to constitute any financial advice.
This is not intended or made to constitute any financial advice.
FED Macro Situation Consideration:
All TP's are drawn within the context of a return to FED neutral policy. I do not expect these levels to be reached before tightening is over.
NOT INVESTMENT ADVICE
I am not a financial advisor.
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The rotation of 2022. Out of Tech/Crypto into Agriculture.The market has taken a turn to a risk off scenario. When on spot without the capability to short, the most logical move is a rotation towards the most Risk-Off asset there is Agriculture. Under normal conditions gains in this area would be meagre at best. However, as producing countries face civil unrest due to rising inflations, we are seeing an increase in export bans, this is compounded by the Ukrainian conflict effect on wheat. So far there is a group of 20 countries some of daam top 3 producers in their respective crops imposing export bans that are planned to end in December 2022-December 2023.
With this in mind a hefty increase in wheat and other crops is expected. Aiming for FIB 4.
#LONG #TRADEOF2022
The great 2022 rotations. Tech/Crypto -> AgricultureThe market has taken a turn to a risk off scenario. When on spot without the capability to short, the most logical move is a rotation towards the most Risk-Off asset there is Agriculture. Under normal conditions gains in this area would be meagre at best. However, as producing countries face civil unrest due to rising inflations, we are seeing an increase in export bans, this is compounded by the Ukrainian conflict effect on wheat. So far there is a group of 20 countries some of them top 3 producers in their respective crops imposing export bans that are planned to end in December 2022-December 2023.
With this in mind a hefty increase in wheat and other crops is expected. Aiming for FIB 4.
#LONG #TRADEOF2022
The great 2022 rotation Tech/Crypto -> Agriculture.The market has taken a turn to a risk off scenario. When on spot without the capability to short, the most logical move is a rotation towards the most Risk-Off asset there is Agriculture. Under normal conditions gains in this area would be meagre at best. However, as producing countries face civil unrest due to rising inflations, we are seeing an increase in export bans, this is compounded by the Ukrainian conflict effect on wheat. So far there is a group of 20 countries some of them top 3 producers in their respective crops imposing export bans that are planned to end in December 2022-December 2023.
With this in mind a hefty increase in wheat and other crops is expected. Aiming for FIB 4.
#LONG #TRADEOF2022
AUDUSD recovery battles 200-DMA amid mixed sentimentAUDUSD pares weekly gains while easing to 0.7543 amid early Wednesday. The pair earlier benefited from the Fed’s rejection to rate hike and tapering before the US dollar picked up safe-haven bids. Additionally, weighing on the quote could be risk-negative headlines from China and cautious sentiment ahead of US PMIs. Hence, failures to cross the key moving average, namely 200-DMA around 0.7555, could recall the 0.75000 threshold on the chart. However, any further downside will be restricted by a four-month-old support line near 0.7485.
Meanwhile, an upside breakout of 200-DMA level of 0.75555 will need to cross multiple lows marked since early February near 0.7580 to convince buyers for a return. Following that, the 0.7600 and early month low near 0.7645-50 should gain the market’s attention as a break of which could confirm the bullish momentum targeting the monthly top near 0.7775. Overall, AUDUSD fades bounce off the key support line and hence further weakness can’t be ruled out.
PCCE; Risk Assets "crash conditions" are met. Dump it all! SHORTHere it is, up cluse and personal.
This is the Put/Call Ratio 14 day RSI. - A highly reliable indicator of 93.8% accuracy.
Dump ALL risk assets - including the highly correlated Precious Metals!! - here!
The raw PCCE
Here is the VIX
... and the FAANGs
... and the AUDUSD
... and the USD (DXY)
... and Gold
Just how many more clues does one really need??... For real.
ABCD PATTERN + DESCENDING TRIANGLEGood morning traders, cadjpy has created an abcd pattern (ab leg equals cd leg) and is forming a descending triangle in H4 chart, we' d better to wait a breakout of the triangle before opening a sell trade . in that case the stop loss could be set over 77.45 and take profit at the beginning of c leg. Fundamentally this pair is correlated with investors mood because if markets are in risk-on mode the yen will become stronger, I think this could happen because of the fear of a second wave of COVID 19 and trade tensions between USA and China.
contact me to join my telegram channel where you will recieve free signals.
Enjoy your trading!
USDOLLAR Moves Into Risk-Off ModeFXCM's USD index, USDOLLAR, has moved into clear risk-off mode. The left chart shows the daily time frame. The index has rejected off of the black 20-day SMA and is moving down. Moreover, the SMA is starting to turn lower, whilst the RSI is also below 50 (blue rectangle) and is suggestive of a bearish momentum. The right chart shows the hourly time frame. Here, the EMAs have turned bearish (red rectangle) and the hourly RSI has crossed below 50 (green rectangle). The greenback is dropping as the Fed's unlimited QE policy takes hold, supporting the risk-on side of the market.
USDOLLAR Holds 50-Day Moving Average SupportThe left chart show's the daily chart of FXCM's dollar index, USDOLLAR. The instrument is holding support at the black 50-day moving average. The RSI is also looking to cross above 50, which is the bullish side of the oscillator. The right chart shows the hourly time frame. Here the RSI is already bullish and if the EMAs start moving upwards (green ellipse), the greenback is likely bid. If this is the case and the sentiment transfers to the daily time frame, the market will be moving towards a risk-off sentiment.
ridethepig | EURCHF High Risk Of Flash Crash !!!Here a good time to update the EURCHF as we break through the 1.062x lows as sellers are aiming for complete capitulation of their opponent (as far as the flash crash is concerned there is very little in terms of support here if we get a daily breach). The plan was
(1) Forcing further selling EURCHF:
(2) The extension leg was released and sellers advanced in triumph:
(3) Possible retracement barrier, e.g strong support on 1.062x, smart money buying the lows?
This plan to originally buy the lows could still be in play, in other words the close this week is important as it will effectively communicate whether we are in the exhaustion stage of our 'C' leg or rather starting the impulsive swing towards 1.014x which is the target wave '3'.
It is much more difficult for SNB to intervene with FED tracking like a hawk to assimilate the CHF selling. The direct exploitation of an intervention is part of the middlegame - see some of my previous content on risk flows. All we need to hope for to achieve a major flush is to keep our opponent suffering for further lengths in time. Buyers are on the defensive!
A close below 1.060x will demand some attention, monitoring closely the price action around these levels. Remain short for now.
Thanks as usual for keeping the likes, comment and charts coming!
ORBEX: EURGBP Ready To Reverse? AUDJPY Still Correcting!In today’s market insights video recording, I talk about EURGBP and AUDJPY FX Minors.
Euro is affected by a report that a phase-1 deal is highly unlikely by the end of this year as the Chinese want rollbacks pushed to May 2020 and the US Congress just passed a bill supporting Hong Kong protesters; going against China again!?
Safe-haven flows were also increasing of course, following the report, allowing yen to appreciate against risk assets with AUDJPY attracting our attention once again!
Pound, on the other hand, is somewhat muted as the first televised debate between Boris and Corbyn was seen as a draw. This means that the euro's somewhat better performance could allow EURGBP reverse and move higher!?
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.