S&P 500 Yearly Forecast (Nov 2020 - Nov 2021)S&P 500 Index (SPX) (November 18th 2020 through November 2021)
Low: 3010.3 points
High: 3876.6 - 3900 points
There could be some great buying opportunities ahead of us in the coming year, can't wait to see what 2021 brings us.
Thanks for tuning in :) Disclaimer, anyone in the trade needs to do their own due diligence and decide what is right for YOU. My charts can be wrong at any time and it's very important that you have your own strategies and plans in place. I run this channel for my own educational purposes of learning to trade, and I will never be 100% right, so please do not let me confirm any bias for you! (Dangerous to do so, stay safe and remember the basics & rules of risk assessment.) Expect the unexpected and happy trading!
Trump
WHY I THINK GBP IS GONNA *PUMP*
Hello traders!
As I've been commenting on my last posts, I think the USD DOLLAR INDEX (DXY) is gonna go bearish again one of these days. After a short bullish momentum, with a clear 50% fibonacci retracement, the index is showing some exhaustion symptoms. Therefore, unless we see an unexpected scenario on the next US elections, the index will probably drop again.
Here is when GBP comes out. The pair is shows some interesting bullish indicatiors. On the first hand, the sterling has been rejecting the 1.20 leve since 2017. This is translated on a decreasing of the volume and power of the bears. Also, EMA9 and MA20 on monthly, are converging to a bullish scenario.
It is probably to see a range or short bearish scenario, but I reallty think that GBP us gonna pump on the upcoming months. The first target is to reach 1.40 on the firsts weeks of 2021.
I'll be updating!
Can the market rise more during Biden's Presidency than Trump's?This is a simple chart showing the performance of the S&P500 under each President since the Ford administration is 1974.
As you see contrary to popular belief, the stock market in modern times has done (much) better under a Democrat President. Bill Clinton has had the strongest performance with more than +200% in gains from the day he went into the office till the day he left, while George W. Bush the worst and the only negative with -34% in losses.
Also this pattern shows that after every Republican Presidency, the Democrat administration that follows performs (much) better. Carter almost tripled Ford's performance, Clinton more than tripled George H. W. Bush's score. Needless to say what Obama did to George W. Bush's disappointing Presidency.
So in my opinion Wall Street shouldn't be seeing Trump's defeat as a setback, but as the start of a Presidency of more stock market gains than Trump's. History has a tendency to repeat itself. Wouldn't you agree? Let me know in the comments section!
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The Most Important Levels for XAU After The Vaccine AnnouncementIn this technical analysis I will go over all the most important horizontal zones for Gold and explain what you need to look at while the market is closing over the weekend.
After a lot of news about the elections, and then the Pfizer vaccine news, the price of gold has moved a lot and showed great volatility. This creates fantastic opportunities for traders, which is why I am looking at gold now at more depth. There are very nice trading possibilities here, so let me walk you through the most important horizontal zones right now so that you can construct your own set-ups as well.
Horizontal Support Level I
The support zone here at the bottom of the chart is at the beautiful level of $1,850. A level not just strong based on the confirmation of price reversal that we have witnessed here. It is also important based on the psychological importance of being at an exact round number.
I decided not to chart any additional support zone on the chart, as I consider the price of gold extremely low at the moment. After coming from an all-time-high we have seen a bearish movement. But after the massive dump on the 9th of November, I only see it going upwards from here.
Horizontal Resistance Level I
Given that I chart this idea based on the bullish scenario of a long position, I suggest looking at this area for a solid take profit level. I see two main options for taking profit, one is to leave the trade near the resistance line of the descending parallel channel, and the other is to hold until the first level of resistance.
Horizontal Resistance Level II
Horizontal Resistance Level II is a more aggressive place to hold gold to and take profit. When we look at the height of the price just before the massive dump on the 9th of November, we see another small peak that could turn into resistance too.
Therefore, instead of holding to say ~$1,980, instead I suggest holding until ~$1,960 instead.
Horizontal Resistance Level III
This level is so far off the current price of gold that I would not suggest to use it for any trade set-up. Especially since this is a high volatility period, so many things can happen soon. I would suggest to enter relatively shorter trades to make sure you are able to update the chart often to include the latest information.
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- Trading Guru
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
USDCHF Sell IdeaThe recent election fraud allegations made by President Donald Trump, and the amount of leaders from different nations holding themselves to congratulate President-Elect Joe Biden makes it pretty obvious that the political environment in the USA is going to get messy. Uncertainty at the highest level of power in the U.S. makes a lot of market participants speculate about the near future of the U.S. Dollar. We have seen how the dollar has recently been trying to go bearish in the last few weeks, and it wouldn't be surprising if the higher up Donald Trump's fraud allegations get, the further down the U.S. Dollar could go in value as well.
ES1: Writing Off This Quarter The FED is projecting we need to write off this quarter as well with the surge of covid cases and at the same time, they are not contemplating an easing of Monetary Policy. Plus Biden is less likely to give stimulus to big businesses. Not only that Trump is most likely going to be dormant for the last 2 months of his presidency, so signs of stimulus seem bleak. This means liquidity is going to be dry for the next couple of months --> Bearish.
SPY: A Trump & Biden ElectionI think the market is smart. We need to read its psychology. I received countless texts, calls and DM's about this election year and the potential results. Well its tough. I have many friends on both sides of the spectrum and some of Biden's and even California's tax plans is really important to understand.
While it would potentially take years and months to implement and Republicans are anticipated to control Congress and a decent control in the Supreme Court. This is important in providing the Check's & Balances in our Primarily Two Party System. (I see you Green & Libertarian Party).
Thus far we are in a consolidation phase. It is hard to call this pattern a rising wedge...which often leads to a bear reversal. Is that something we are going to see under Biden? Or do we predict one final big run in the market and if Biden win's we can potentially see huge sell off's prior to the execution of his tax plan. Its a big WHAT if scenario.
I will be very honest and say I am not to sure about who is going to win. Biden looks to have the advantage with the various votes coming in at the last minute. I'll leave conspiracies and my personal political values on the sideline.
Chart Wise:
We set two Lower Highs.
Two Higher Lows.
Consolidation theory makes sense considering the election year.
IF we want to hit a big final push into HH...which seems a bit insane in this market, but potentially possible if Trump wins. The amount of people who have sat sidelines cash and waiting for a Orange Hair win is quite large. I know real estate developers and investors who told me if Trump wins they will go full steam ahead in their developments and acquisitions. So can this be a big driver for people who have money? Maybe.
I also heard of many saying they will pull out of the market if Biden wins and slowly decrease their ownership of stock to preserve portions of their wealth.
What is MOST important during this time is to BUY LOW & SELL HIGH. Be patient. Try not to touch anything at ATH's. The best posture is a defensive one. That being said I opened position around the time of the second lower high. It was a easy trade that benefitted me greatly in the last two days. So if you are willing to take a little risk try and enter as close to the bottom of the symmetrical triangle.
Again, these are all my personal opinions and not professional advice. Do your own due diligence and trust your own gut. If you have any other perspectives please let me know! I would like to continue to educate myself and see how other trades think and perceive the markets.
Thanks again. Stay safe & Happy Hunting!
Reg.
USDCHF H4 - Short Trade SetupUSDCHF D1 - Carried forward from last week, big daily S/R structure here, seen the downside break, looking for the subsequent retest and to find resistance at circa 0.90400. No stacked confluences here, just a simple break and retest of daily S/R, daily candlestick confirmation would be a must. Probably be more inclined to use this pair as a comparison pair, to see if there is anything else similar which offer more confluences.
Post-election breakdown of DOLLAR-YEN[Target 100]A short post, with few important points:
With record low interest rates globally, the carry trade with the short-side in yen is somewhat losing its popularity. Some of the reasons why are:
=> The carry premium isn't worth the risk any longer. Lately currency markets have been quite volatile, question is whether this will continue. If we get a somewhat more stable environment in developed markets, carry sharks might look elsewhere for the following reasons...
=> Record low rates globally, even further squeezing the positive carry spread, however now that all the key rates globally are at the ZLB (prospects even to go below it), the importance of inflation is ever more accentuated. Why'd you even enter a long carry with a short side in yen given the inflation differential, with Japan potentially going into a deflationary environment?
=> Lastly, we're in a new paradigm where it's questionable how long would it take for emerging markets to recover from the virus, and the grading of their government bonds is starting to become questionable.
There are other points of course, but principally Biden after all might get a weaker dollar after all, thanks to MMT. On one side, too little stimulus implies a potential credit crunch/crisis, and too much stimulus= devaluation. Obviously, devaluation is without any doubts the better choice.
The rest is summarized by the chart.
-Step_ahead_ofthemarket
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