US2000 H4 | Falling to pullback supportUS2000 is falling towards a pullback support and could potentially bounce off this level to climb higher.
Buy entry is at 2,217.05 which is a pullback support that aligns with the 61.8% Fibonacci retracement level.
Stop loss is at 2,156.00 which is a level that lies underneath a multi-swing-low support.
Take profit is at 2,291.90 which is a swing-high resistance.
High Risk Investment Warning
Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you.
Stratos Markets Limited (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Europe Ltd (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Trading Pty. Limited (www.fxcm.com):
Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com
Stratos Global LLC (www.fxcm.com):
Losses can exceed deposits.
Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd.
The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third-party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
Russell2000
US2000 H4 | Potential bullish bounceUS2000 is falling towards a pullback support and could potentially bounce off this level to climb higher.
Buy entry is at 2,269.85 which is a pullback support that aligns with the 23.6% Fibonacci retracement level.
Stop loss is at 2,235.00 which is a level that lies underneath an overlap support and a 38.2% Fibonacci retracement level.
Take profit is at 2,313.38 which is a level that aligns with the 127.2% Fibonacci extension level.
High Risk Investment Warning
Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you.
Stratos Markets Limited (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Europe Ltd (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Trading Pty. Limited (www.fxcm.com):
Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com
Stratos Global LLC (www.fxcm.com):
Losses can exceed deposits.
Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd.
The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third-party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
75% gains BUY/HOLD IWM/RUS2K C*H trade setup🔸Hello traders, today let's review 2daily chart for IWM . Entering re-accumulation stage now, expecting range bound trading during next fer months. We've hit heavy overhead resistace / limited upside currently.
🔸The speculative chart pattern is bullish C*H in progress, expect more range locked price action for a few months as we re-accumulate and get ready to clear the ATH. Measured move price projectiong for the C*H structure is 350 USD, 75% upside from the recommended BUY ZONE.
🔸Recommended strategy bulls: wait for IWM to re-accumulate in the sliding
bull flag formation and get ready to BUY/HOLD low near 200 USD, target
based on measured move projection is 350 USD. good luck traders!
🎁Please hit the like button and
🎁Leave a comment to support our team!
RISK DISCLAIMER:
Trading Futures , Forex, CFDs and Stocks involves a risk of loss.
Please consider carefully if such trading is appropriate for you.
Past performance is not indicative of future results.
Always limit your leverage and use tight stop loss.
US2000 / RUSSELL2000 Market Money Heist Plan on Bearish SideHallo My Dear Robbers / Money Makers & Losers, 🤑💰
This is our master plan to Heist US2000 / RUSSELL 2000 Market based on Thief Trading style Technical Analysis.. kindly please follow the plan I have mentioned in the chart focus on Short entry. Our target is Green Zone that is High risk Dangerous level, market is oversold / Consolidation / Trend Reversal / Trap at the level Bullish Robbers / Traders gain the strength. Be safe and be careful and Be rich 💰.
Entry : Can be taken Anywhere, What I suggest you to Place Sell Limit Orders in 15mins Timeframe Recent / Nearest Swing High
Stop Loss 🛑: Recent Swing High using 2h timeframe
Attention for Scalpers : If you've got a lot of money you can get out right away otherwise you can join with a swing trade robbers and continue the heist plan, Use Trailing SL to protect our money 💰.
Note: If you've got a lot of money you can get out right away otherwise you can join with a swing trade robbers and continue the heist plan, Use Trailing SL to protect our money 💰.
Warning : Fundamental Analysis news 📰 🗞️ comes against our robbery plan. our plan will be ruined smash the Stop Loss. Don't Enter the market at the news update.
Loot and escape on the target 🎯 Swing Traders Plz Book the partial sum of money and wait for next breakout of dynamic level / Order block, Once it is cleared we can continue our heist plan to next new target.
Support our Robbery plan we can easily make money & take money 💰💵 Follow, Like & Share with your friends and Lovers. Make our Robbery Team Very Strong Join Ur hands with US. Loot Everything in this market everyday make money easily with Thief Trading Style.
Stay tuned with me and see you again with another Heist Plan..... 🫂
M2K: SmallCap May Get a Big Lift with Rate Cuts UnderwayCME: Micro E-Mini Russell 2000 Futures ( GETTEX:M2K )
Global financial market orbits around Federal Reserve’s interest rate decisions. Hiking interest rates means monetary tightening while cutting them signals easing.
In the past three years, we have witnessed a full cycle of Fed hikes and now its reversal.
• In March 2022, as inflation rose rapidly, the Fed started a series of rate increases, pushing the Fed Funds rate up by 525 basis points from 0-0.25% to 5.25-5.50%.
• In September 2023, after 11 consecutive rate hikes, the Fed put the brake on. It kept the Fed Funds unchanged for a full year in eight FOMC meetings.
• Last Wednesday, the Fed finally entered the long-awaited rate cut cycle. It slashed interest rates by a supersized half point, or 50 basis points, in its first cut since 2020.
According to the Bureau of Labor Statistics (BLS), the latest reading of headline CPI is 2.5% in August, down 6.6% from its peak in July 2022. We may conclude that the Fed has largely completed its mission of combating inflation.
The BLS data shows that the U.S. unemployment rate has risen to 4.2% in August 2024 from 3.6% two years ago in August 2022. Fed’s easing signals its pivot to the second mandate, to support full employment. Lowering interest rates could reduce borrowing costs, and in return help business expansion and employment.
Russell 2000: SmallCap may get the biggest Boost
The discounted cash flow (DCF) model estimates the present value of an investment based on its expected future cash flows. A lower cost of capital (CoC) shall cause the price of the investment to go up, other things equal.
Small companies would gain the most compared to larger corporations. In the preceding rate hike cycle, they were hit hard as credit standards got tightened and credit spreads expanded. We will now see the reversal.
Russell 2000 is the benchmark stock market index for US small companies. CME Micro E-mini Russell 2000 futures ( GETTEX:M2K ) were settled at 2,252.6 on Friday, up 10.05% year-to-date.
For a comparison, the S&P 500 gained 19.50% YTD as of Friday, while the Nasdaq 100 was up 17.59%. In my opinion, the major stock indexes rose on the back of the AI-driven technological breakthroughs, where Big Tech dominated but few Small Cap companies could benefit. In this new cycle, lowered borrowing costs and the abundance of credit could help small businesses improve their balance sheets.
The Fed is expected to continue cutting rates in the next two years. Corporate bond yields could likely return to the 2-3% range. The credit spreads, including Baa-Bbb, Baa-Bb, and Baa-Ccc, would likely get smaller. This could bring further boost to the Russell index.
Could we quantify the impact of rate cuts? Let’s illustrate this with a $1 million payment, to be received in five years.
• Applying the BBB corporate bond yield of 4.88% as the CoC, present value of $1 million will be $788,019.
• If the CoC moves down by 250 bps to 2.38%, the PV will be increased to $889,046.
• This shows that a 2.5% reduction in CoC could boost the PV by 12.8%.
The same concept would work on the Russell index. CoC could drop either due to interest rate decrease or because of the narrowing of credit spread, which favors smaller companies. The result would be an increase in the market value of Russell component companies.
For someone with a bullish view of the Russell 2000, he could establish a long position in CME Micro E-mini Russell 2000 futures. The contract has a notional value at $5 times the index. At Friday closing price of 2,252.6, each December contract (M2KZ4) is worth $11,263. CME Group requires an initial margin of $760 for each M2K contract, long or short.
The Fed will next convene on November 5th-6th and meet one last time in 2024 on December 17th-18th. In my opinion, if the Fed continues lowering rates in these two meetings, Russell 2000 could likely move up further.
Hypothetically, if the Russell is 5% higher by December, the 113-point increase would translate into $563 (=2252.6*0.05*$5) gain per contract for the long holder.
The risk of long futures is the index going down. If inflation spikes unexpectedly, the Fed could possibly pause its rate cuts, casting doubt on the future rate trajectory. For more experienced traders, put options on the E-Mini Russell 2000 futures could be deployed to hedge the downside risk.
Happy Trading.
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
CME Real-time Market Data help identify trading set-ups 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
US2000 H4 | Heading into multi-swing-high resistanceUS2000 is rising towards a multi-swing-high resistance and could potentially reverse off this level to drop lower.
Sell entry is at 2,278.81 which is a multi-swing-high resistance.
Stop loss is at 2,328.00 which is a level that sits above the 127.2% Fibonacci extension level and the all-time high.
Take profit is at 2,218.24 which is an overlap support.
High Risk Investment Warning
Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you.
Stratos Markets Limited (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Europe Ltd (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Trading Pty. Limited (www.fxcm.com):
Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com
Stratos Global LLC (www.fxcm.com):
Losses can exceed deposits.
Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd.
The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third-party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
🔀 Bang Bang. Zoom Hit The Ground. Bang Bang. Bears Shot It DownZoom company's video-conferencing service became so ubiquitous during the Covid-19 pandemic that its corporate name became a verb describing the act of firing up a video chat to connect with coworkers online.
Zoom shares VIE:ZOOM rose seven-fold in 2020 as sales surged after millions of workers were stuck at home because of COVID-19 restrictions. By 2021, though, revenue growth slowed, and the stock plunged. The company has shed at least $100 billion in market value since then.
Meanwhile over the past two years, the stock has stagnated because Zoom's video-conferencing service is needed less as businesses continue pushing staff back to the office.
Zoom, one of the main enablers and beneficiaries of remote work, in August 2023 has asked its employees to head back to the office. The company announced that employees living within 50 miles of a Zoom office must work there at least two days a week.
"We believe that a structured hybrid approach – meaning employees that live near an office need to be onsite two days a week to interact with their teams – is most effective for Zoom," a spokesperson said in a statement. "As a company, we are in a better position to use our own technologies, continue to innovate, and support our global customers."
As pandemic Covid-19 is over, many other companies have announced return-to-office mandates, but Zoom's change of heart is surprising given the role its technology plays in remote work. The company's video-conferencing service became so ubiquitous during the pandemic that its corporate name became a verb describing the act of firing up a video chat to connect with coworkers online.
People are back to Travelling. The annual graph for NYSE:RPM , Revenue Passenger Miles for U.S. Air Carrier Domestic and International, Scheduled Passenger Flights.
Meanwhile, there're some important things to say.
Warren Buffett's 99-year-old business partner, Charlie Munger, was surprisingly embraced Zoom during the pandemic. Eric Yuan, the founder and CEO of the video-conferencing platform, celebrated the veteran investor's endorsement of his product on an earnings in 2021.
"I have fallen in love with Zoom," Munger, the vice-chairman of Berkshire Hathaway, said in a CNBC interview filmed at Berkshire's annual shareholder meeting in May, 2021.
"Zoom is here to stay. It just adds so much convenience."
• Munger added that he struck a deal in Australia using the communications tool. He trumpeted its prospects at Daily Journal's annual meeting in February, 2021 as well.
• When the pandemic is over, I don't think we're going back to just the way things were," the newspaper publisher's chairman said.
• We're going to do a lot less travel and a lot more Zooming.
Charlie loves Zoom and uses it frequently for business and to keep in touch with his family, as it's difficult for him to travel.
His business advice was to build a better product or offer a better solution, that it's all about competition, and that successful people are those with the acumen to understand life better than everyone else. He said it's up to you to work harder and better than the next person.
Charlie also said investments are better than money in the bank, and it's important to go to the office to work in person.
The main graph says, Zoom equities just hit the major all history ground support near $59 per share.
RUT2K Short-Term Selloff Likely After Fed Rate Cut DecisionIf you haven’t seen my RUT 2000 prediction for 2024:
Now you need to know that as the Federal Reserve’s rate cut decision looms, speculation is rising that we may see a larger-than-expected 50 basis point cut instead of the anticipated 25. While rate cuts are typically a positive for equities, this aggressive move could lead to a short-term selloff, particularly in smaller-cap stocks, represented by the RUT Russell 2000.
The reasoning is tied to the market's well-known "buy the rumor, sell the news" behavior. With expectations already priced in for a 25 bps cut, a surprise 50 bps cut could trigger concerns over economic health, prompting investors to de-risk. This would likely lead to a temporary selloff in riskier, smaller-cap stocks, with RUT2K potentially taking a hit in the near term.
Given this outlook, I’m considering the $204 strike price puts expiring on October 18, 2024. These options could provide a solid hedge or a potential profit opportunity if the market reacts negatively to the Fed’s decision in the short term, as I expect smaller-cap stocks to feel the pressure more acutely than large-cap counterparts.
Despite this expected volatility, the broader market should recover before the end of the month, once investors fully digest the news. By November 5th, on U.S. election day, we could even see new all-time highs in major indices like the S&P 500 (SPX) and Nasdaq 100 (NDX). Small caps, however, may take longer to rebound, adding further value to a short-term put position in IWM.
Fed Chair Jerome Powell appears motivated to support a strong market ahead of the elections, which could benefit Democrats. Former President Donald Trump has indicated he would not reappoint Powell if he returns to office, potentially giving Powell incentive to maintain market stability leading up to November.
In summary, while a larger-than-expected rate cut could cause IWM ( Russell 2000 ETF ) to face short-term turbulence, the market will likely stabilize by the end of September. The $204 strike price puts expiring on October 18, 2024, offer a timely opportunity for traders seeking to capitalize on this brief volatility.
Markets Finding Equilibrium Before FOMCAll major indexes and broad market advancing today with the US CPI/PPI combo causing some big recoveries since the post Labor Day selloff.
Momentum goes to the bulls for now until price proves otherwise. FED likely to cut 25 bps next week with more to come by end of year. It's amazing how quickly sentiment can shift like it did with Aug 1-5 and after, and again Sep 3-6 and after.
I hope you enjoy today's video. Friday's close for the day and week will be important and perhaps it's all quiet on the western front heading into FOMC next week where price can be excitable and volatile, but we'll do our best to navigate everything.
Thanks for watching!!! See you in the markets.
RUSSELL 2000 Strong buy on the 1st 1W Golden Cross in 3.5 years!The Russell 2000 (RUT) index gave us an excellent buy signal on June 19 (see chart below), hit our 2293 Target and immediately pulled-back to the 1W MA200 (orange trend-line):
The established pattern on the long-term is a Channel Up that first drove the price to Resistance 1 (and our Target) and now guiding it to Resistance 2. The 1W MA50 (blue trend-line) is providing the Higher Low support needed to sustain the Channel Up trend.
The key development this week is the formation of the first 1W Golden Cross since January 2021. We expect that to be enough to resume the Bullish Leg and post at least another +27% rise (as in October - December 2023). As a result our Target is 2400.
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US2000 Selloff | Small Caps Looking FrailLot's going on in this picture, my apologies for all the noise.
Consistent with the overall market and recently published indexes, I am looking for more downside in US Domestic small-cap stocks.
If you thought or if you were influenced that this inflation bubble economy would persist forever, I advise you consider a different source of information. "Do your own research" does NOT mean, go find something that agrees with your preferences.
Rather, #DYOR as the kids say, is an opportunity for individuals and teams alike to look deep within themselves and ask if they have what it takes to achieve: honesty, humility, and truth.
Russell/SPX Divergence Indicating a Market Cycle TopThe stock market continues to make new highs and is finishing the final touches in this topping process. The problem is the Russell is failing to make new highs. We can see before every stock market crash was accompanied with the SPX/NDX/DJI making new highs while the Russell makes a lower high. This occurred during 2008, 2022, and it could be happening right as we speak. The Russell failing to make new highs suggest that the topping process is underway and we will be getting a powerful stock market crash.
Nasdaq already in a Bear Market Hello everyone,
We are currently in a topping process and chances are July 10, 2024 was the top for the Nasdaq (NDX). I believe that we will fill the gap before entering the bear market. A confirmation of a lower high on NDX and a higher high on SPX would show a clear divergence confirming a market top. It's clear that the Russell (IWM) is not making new highs and showing a clear divergence from SPX and NDX making new highs suggesting this is the top. NDX may have already entered a bear market and will not be making new highs and this is simply an ABC corrective wave up before making new lows.
TLDR: NDX ABC CORRECTIVE WAVE UP BEFORE NEW LOWS; NDX WILL MAKE LOWER HIGHS AND SPX NEW HIGHS WILL CONFIRM THIS A MARKET TOP
Double-Top In PlayAs expected, SPY double-top looks to be playing out. I don't expect us to drop much lower than the pink ascending trendline. Maybe we'll touch that 200 dma before our full send. Let me remind you that the pink ascending tl is the neckline of a large cup and handle pattern on the bi-weekly, the target of which remains 650-700. This is still in play on the longer timeframe and as long as we don't break below the pink tl with confirmation on the weekly, I will start to buy back at or around the pink tl and down to the 200 dma. Batting 1000% thus far and hoping to keep it perfect.
US2000 / RUSSELL 2000 Money Heist Plan on Bullish SideMy Dear Robbers / Money Makers,
This is our master plan to Heist US2000 / RUSSELL 2000 Market based on Thief Trading style Technical Analysis.. kindly please follow the plan I have mentioned in the chart focus on Long entry. Our target is Red Zone that is High risk Dangerous level, market is overbought / Consolidation / Trend Reversal at the level Bearish Robbers / Traders gain the strength. Be safe and be careful and Be rich.
Note: If you've got a lot of money you can get out right away otherwise you can join with a swing trade robbers and continue the heist plan, Use Trailing SL to protect our money.
Entry : Can be taken Anywhere, What I suggest you to Place Buy Limit Orders in 15mins Timeframe Recent / Nearest Swing Low
Stop Loss : Recent Swing Low using 2h timeframe
Warning : Fundamental Analysis comes against our robbery plan. our plan will be ruined smash the Stop Loss. Don't Enter the market at the news update.
Loot and escape on the target 🎯 Swing Traders Plz Book the partial sum of money and wait for next breakout of dynamic level / Order block, Once it is cleared we can continue our heist plan to next new target.
Support our Robbery plan we can easily make money & take money 💰💵 Follow, Like & Share with your friends and Lovers. Make our Robbery Team Very Strong Join Ur hands with US. Loot Everything in this market everyday make money easily with Thief Trading Style.
Weekly Recap & Market Forecast $SPX (Sept 1st —> Sept 6th)**DIYWallST Weekly Recap & Market Forecast**
---
Hello Investors! 🌟 This week saw mixed movements in the stock markets as strength in consumer staples, energy, and financials helped offset weakness in discretionary and technology shares. Let’s dive into the key events that shaped the financial landscape. 📈
**Market Overview:**
The week began with consumer staples, energy, and financials providing support to the markets, counterbalancing the softness in discretionary and technology shares ahead of key earnings reports in those sectors. Oil prices rose early in the week as Israel responded to a Hezbollah attack from the North, and uncertainty over Libya’s production reemerged. However, crude prices fell back later in the week after a report suggested OPEC+ might proceed with a planned ‘gradual’ oil output increase starting in October. Gold prices continued to set new all-time highs, maintaining their recent outperformance over bitcoin. The S&P 500 encountered resistance around 5,600—a level approximately 20x average 2025 S&P earnings estimates, which moved up towards $275 following Nvidia and other companies' quarterly results. Stock indexes closed mixed for the week, with the S&P edging up 0.2%, the DJIA rising 0.9%, and the Nasdaq down by 0.9%.
**Stock Market Performance:**
- 📈 S&P 500: Up by 0.2%
- 📈 Dow Jones: Up by 0.9%
- 📉 NASDAQ: Down by 0.9%
**Economic Indicators:**
Economic data this week supported the expectation of more central bank rate cuts next month:
- **European CPI:** Preliminary German and French CPI fell below the ECB’s 2% target for the first time since August 2021, reinforcing expectations of a rate cut from the ECB in September.
- **US Durable Goods:** July data rebounded sharply as expected, but core capital goods (nondefense excluding aircraft) were disappointing, showing no monthly increase since April.
- **Richmond Fed Index:** The August print was soft, contracting to a level not seen since the pandemic.
- **PCE Inflation Data:** The Fed’s preferred inflation gauge did little to alter expectations for a September rate cut, while Q2 preliminary GDP and July personal consumption data remained solid.
- **US Yield Curve:** The 2-10 spread moved closer to de-inverting, with just a few basis points separating it from positive territory.
**Corporate News:**
Earnings reports continued to be a major market driver, especially in the retail sector, which delivered mixed signals:
- **Best Buy:** Exceeded earnings expectations despite posting its 11th consecutive quarter of negative US same-store sales, highlighting that consumers are seeking value but still willing to invest in new technologies.
- **Dollar General:** Missed estimates and confirmed that lower-end consumers are struggling, with many running out of paychecks before month-end and relying on credit cards for basic needs.
- **PDD (Temu-parent):** Shares were hit hard after the company reported that intensifying competition was pressuring revenue growth.
- **Nvidia:** Beat earnings expectations again but saw a slightly more modest increase in guidance than usual, leading to a retracement in big tech stocks on Thursday.
- **Marvell Technology:** Impressed investors with a strong earnings report and forecasted that custom silicon would become a significant revenue growth driver.
- **Intel:** Reportedly considering a major restructuring, which could include spinning off its foundry business.
- **Paramount:** The latest development in the ongoing acquisition saga saw the Edgar Bronfman Jr.-led consortium withdraw its proposal, clearing the way for Skydance to close the deal.
**Looking Ahead:**
Next week will bring several key events and data releases:
- **U.S. Jobs Report**
- **U.S. PMI Surveys**
- **Fed Beige Book**
- **Earnings Reports:** Broadcom ( NASDAQ:AVGO ), Dollar Tree ( NASDAQ:DLTR ), Dick’s Sporting Goods ( NYSE:DKS ), Nio ( NYSE:NIO )
- **Labor Day Holiday:** Markets will be closed on Monday
As we move forward, these developments will be crucial in shaping market sentiment and guiding investment decisions. If you have any questions or need further insights, feel free to reach out. Here’s to another week of informed investing and strategic decision-making! 🌟
$RUT <> $BTCDespite popular belief that Bitcoin operates independently, it closely mirrors the Russell 2000 index during risk-on market periods. Both assets show strong correlation, attracting investors seeking higher returns in optimistic economic conditions. This parallel movement reveals Bitcoin's growing alignment with broader market risk sentiment, though it typically exhibits more extreme volatility.
September News:
-Fri, Sep 6th Unemployment Rate & Labor Force Data
-Wed, Sep 11th Consumer Price Index (CPI)
-Wed, Sep 18th FOMC Meeting (Rate Cuts)
$RUTSeptember will likely determine the market's direction for the rest of the year. Key U.S. economic indicators, such as the Consumer Price Index (CPI) and unemployment rates, released in the first couple of weeks of September, will provide more confidence to investors. Currently, the market is pricing in a potential rate cut on September 18.
Positive economic news is likely to encourage risk-on behavior, which could be particularly evident in U.S. small-cap companies and may spill over into traditionally riskier markets like cryptocurrencies. Historically, rate cuts have led to very short-term risk-on behavior before major drops in global indices.
Russell 2000 - COT Based Strategy Suggests Downside AheadDISCLAIMER: This is not trade advice. This is for educational purposes only to demonstrate how I am looking to participate in this market. There is significant risk involved in trading, do your own homework and due diligence.
COT Strategy
SHORT
Russell 2000 (RTY)
My COT strategy has me on alert for short trades in RTY if we get a confirmed bearish change of trend on the Daily timeframe.
COT Commercial Index: Sell Signal
Valuation: Overvalued VS Treasuries
True Seasonal: Strong seasonal tendency for equities to go down in September
COT Small Spec Index: Sell Signal
Supplementary Indicators: POIV & UO Sell Signals
Remember, this is not a "Short Now" idea. These indicators are not timing tools. They simply tell us that this market could have a move of some significance to the downside, which we will participate in with a confirmed Daily trend change to the downside.
Good luck & good trading.
NASDAQ Time to move more aggressively to the tech sector!Nasdaq (NDX) may be underperforming on its August recovery relative to the other indices (S&P500 and Russell 2000) but as the monthly candle closes today, there is a very encouraging signal coming from an index ratio that shows that this may be the time to get heavier on tech.
We will use the Russell 2000 index (RUT) as it represents a wider array of companies and place it against Nasdaq on the RUT/NDX ratio. Naturally over the years (this 1M chart shows data since 2006), the ratio declines within a Channel Down as historically the riskier tech sector attracts more capital and grows more.
However there are instances where Russell gains more against Nasdaq. We are currently though at a time where this isn't the case as the ratio seems to be under a consolidation that on previous fractals (March 2015, September 2008) led to more decline, thus gains for Nasdaq.
As you can see, this movements can be grasped by the Sine Waves, though not perfectly, but still goo enough to understand the cyclical pattern we're in, also with the help of the 1M RSI Triangles.
Nasdaq (which is represented by the blue trend-line) has started massive expansion Channel Up patterns following this unique signal given by the RUT/NDX ratio. The first was right after the 2009 Housing Crisis bottom and the second during the 2015/ 2016 E.U., VW and Oil crisis.
As a result, this could be an indication that even though the last crisis we had was 2022 Inflation Correction, Nasdaq may be starting a new bullish wave of massive gains against the rest of stock indices.
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