Gold Long Analysis to 1869 (Short Term View)📈On our last Gold analysis, we said that Gold would be heading higher towards 1854 & it finally did on Friday. However, due to how bullish the weekly candle closed, it is likely that prices will head higher towards 1869-1880. This will be a good entry zone, to short market back towards 1760-1730📉
This will be the FINAL leg down, before we invest heavily into Gold buys & target NEW HIGHS. A close above 1909 will invalidate sells & we'll close our sells at 400+ PIPS profit.
US10Y
SPX | Did you win?Ah the beauty of Fibonacci... when after a painful recession for equities, we reach the golden ratio alive and well. The satisfaction!!!
Now we can go all-in equities! Perhaps you are one of the lucky ones who bought the October bottom, then congrats to you!
How much was your profit really? After all, this was a peculiar year... Yields massively increasing, equities dropping. It is like a dead end, it feels like a maze...
The main chart does show a significant recession... But we have passed it!
Some charts suggest that we had no recession this year...
Other charts suggest the complete opposite!
Note that these are my charts. I was the contradictory being...
Look at what the last chart means:
LQD is the investment-grade ETF. On the second chart it is compared with SPX/(modified-yields) and on the third with SPX/(modified-yields*PPIACO). The correlation is as good as it can get...
This is a mess... what can we infer from all of these charts?
Something fundamental can help us clear the picture. We can differentiate between 4 distinct periods of the economic cycle.
A. Equities increase while yields decrease (bonds increase)
This is the QE model, which followed us for many years. During this period, the only winner is the one who had only stocks in the beginning. Investing everything in the stock market is your best bet.
B. Equities increase while yields increase
This is the scenario when the economy is at it's best. During this period, everyone wins. Both the one who has stocks and the one who is selling/lending cash (sitting on cash) win. Any kind of investment is good in this period!
C. Equities decrease while yields decrease
This is the nightmare of the wealthy ones, and this period that rarely comes. It happened during the 1929, the 2000 and the 2008 recessions. During this period, you win if you have nothing invested, and without any money. Borrowing money to buy stocks is the best plan.
D. Equities decrease while yields increase
Sound familiar? This is 2022 in a nutshell. During this period, I hate to disappoint you, the only one who wins is the one who has a lot of money. Sitting on cash and lending it is your only option. The immense amount of money that the US printed, is now sitting in the hands of few. If you traded for profit, then you are probably at (or near) net-zero.
In 2022, you won if you sat in cash. We have gone full circle, from advising into sitting in cash, to advising into selling, to buying, and back to the beginning. Finance is complex...
To conclude, my head is spinning... I have no idea what all of this will lead to. It is as if we are in a lose-lose scenario.
Invest in bonds? But is the US going to be able to pay them out, after decades of free money? And with so much money in circulation, how many bonds are being purchased at these "extortionate" rates? How in the world will the US be able to pay out so much? Invest in equities? They look like they will face years of stagnation.
The only thing that smells lately is the smell of war, the smell of "I have nothing to lose". The only thing to gain now is resources.
Commodities are bull flagging against everything. More specifically, the combination between the cost of commodities and the cost of their production added together. This makes me believe that a small increase in production cost will lead to multiplicative increase in the final product value. This is a recipe for hyperinflation. And the big profit is if you own the land the resources are produced. (Ukraine for wheat, Taiwan for silicone, etc...). Everyone is willing to fight for these lands...
I am adding this chart for the picture on the left. The CEO of Bank Of America is preparing for US bankruptcy.
Tread lightly, for this is hallowed ground.
-Father Grigori
Higher Yields May Cause Bigger Correction On DXYHigher yields may cause a bigger correction on DXY, as yields can be still looking for wave 5 by Elliott wave theory.
Yields higher, USD strong, stocks down. Risk-off flows may not be over just yet if yields are in fifth wave. However, when yields will make new high and then top after 5th, thats when DXY can complete B/2 rally, with a lower high, when focus will shift away from US to other CB. However, of course, wave 4 on yields can get more complex if current trendline support is broken, so wave B/2 on DXY may take more time to unfold.
Grega
US10Y Rejection cluster. Targeting the 1D MA200 again.The U.S. Government Bonds 10YR Yield (US10Y) has been trading within a Channel Down pattern ever since the October 21 2022 High and even though there might be a Diverging Channel Up (dashed lines) emerging, the current levels and the fact that it has failed to break higher in the last five 1D candles, make it a strong Resistance cluster.
With the 1D RSI also on such a rejection junction, we are turning bearish on the US10Y again, targeting the 1D MA200 (orange trend-line), which supported the price twice on January 19 and February 02. Potential contact (as a target) can be made at 3.510%. We will continue to be bearish only if the 3.320% Support breaks.
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US 10 YEAR YIELDS (LONG ANALYSIS)The US 10 Year Yield is getting ready for another move to the upside, which shows us that the current falling wedge pattern it is correcting inside of, is considered Wave 4 of the Elliot Wave theory. I am expecting this to rocket up for the time being, alongside the Dollar Index.
US10Y - DXY = Positive Correlation
US10Y - XAUUSD = Negative Correlation
US10Y - ST Pullback in Yield Ahead? Charted is a proposed price pathway for the 10yr T Bonds.
I'm looking for an easing in yield soon... in the 4.125 area (.786 Fib level) specifically, sometime in early March.
This will represent the top of the b wave of wave 4 off the Aug. 2020 low.
This expectation flies in the face of recently released inflation related news. As such my parameters are well defined here. A move beyond the afore mentioned yield will make me reassess the trade.
I'm seeing correlated markets showing signs of synergy with the expected outcome of this move.
Specifically I am expecting a move up in oil, technical ST pullback in DXY and a technical bounce in gold...which will fail and complete a fantastic short set-up.
See my Gold idea...
USDCHF LONG ANALYSIS TO $0.96550📈Let's not forget that the overall direction of the Dollar is now in a downtrend. USDCHF has completed its first impulse wave to the downside, which would count as Wave 1 of the downtrend.
Now expecting a Wave 2 retracement, which will be supported by the mid term buys on the Dollar Index.
Drop a like and follow to keep up with the latest analysis and updates!
GOLD LONG TO $2,170🚀🚀🚀There is a very HIGH CHANCE that we have just seen Gold finally bottom. After the first impulse wave from $1,620 to $1,960, Gold finally started correcting itself to the downside. We have seen a 3 sub-wave correction (A,B,C) to the downside, with Gold taking out last Friday's low at $1,819 and now shooting back up. This also forms the bottom of Wave 2.
Liquidity taken and now ready for Wave 3🚀 $2,160-$2,2240 target.
The (4) Four Charts I am watching closely todayPull these charts up on your radar. They are key. With today’s spike on the VIX, we may see key resistance and support lines break. If any one of these critical trendlines/levels are broken, much more caution is warranted on the long side. Let’s quickly run through the charts I am observing.
DXY - A break to the upside of that macro uptrend (with confirmation on the daily) indicates a stronger dollar. A stronger dollar price must be calculated into current stock prices, weakening the current stock momentum.
US500 - Testing that Macro Uptrend as support. A break below may indicate further downside (pending FED language following FOMC press conference).
US Treasuries - Both the 10 year and the 2 year are pushing up against resistance. A break to the topside would indicate that the FED will continue its aggressive rate hikes strategy to tackle inflation. The dollar will follow with strength. The markets will depress even further. Crypto will follow. Treasuries seem to indicate that the FED will continue its aggression against inflation. We must pay attention closely to those purple lines/levels.
Also to note, Bitcoin is up against its 200-week ma. I don’t see that be broken immediately without some setback prior. The Bitcoin price battle with the 200 weekly ma may be the earliest indicator we have to what might follow in the next few days/weeks.
As always, be cautious. Don’t bite too hard on these last few weeks of bullish price action. Dollar-cost average yourself in. Place those stops. And best of luck to you all!
Stew
Fading Bonds rally Long US10Year Yield / Short TY Future fading the YTD bond rally driven by Central Banks Pivot hope misread by markets, it seems that the short positioning has exacerbated the buying so far this year.
Things should start to normalise into month end and ahead of FED/ ECB meetings in February.
Short US10Y Future - Expect the Yield rise by 20bps
Keep a close eye on this breakout!Traders,
Keep a close eye on this breakout on our fear index. So far, nothing significant has followed to the same level of price movement: the dollar is still under its macro-uptrend resistance, the US500 is still using its macro-uptrend for support logarithmically, and the US10yr/US2yr remains under resistance.
But we want to track this closely to find out the legitimacy of this spike in fear. Confirmation can be had if one of the indicators mentioned above follows and breaks its support/resistance (see yesterday's video for more).
Best,
Stew
US10Y SELLWelcome to my account. There is a high probability that the market will go down. With a strong model formation. Double button. He also made the area retest twice. The price fails to breach the broken resistance 3.900. I think the price will be negative over time. And we see its price is 3500. In the first stage
Gold Long to 1854 (HEDGE ANALYSIS)📈From analysing market structure, there’s a possibility that Gold could be entering a Wave 2 corrective phase, allowing sellers to rest & re-accumulate more positions from 1854-1874📈
⭕️Gold Oversold
⭕️Price Imbalance
⭕️Wave 1 Cycle Complete
Will ONLY be opening buy positions, if we see a 3 sub-wave (A,B,C) move towards 1832. A straight drop down isn’t a buying confirmation.
Drop a like & follow to keep up to date!
GOLD SHORT TO 1760 - 1730📉This here is a sell to buy trade. We are catching the retracement on Gold (Wave 2), before re-entering more sell positions from the supply zone & targeting new high's around $2,160 - $2,240.
Want to keep up to date with the analysis. Drop a like, follow and let me know what you think👇🏽
GOLD SHORT TO 1764 (SCENARIO 2 UPDATE)Gold now running 1,100 PIPS in profit for Gold Fund investors😍 Seeing some nice downside movements in the market, which is bad for the economy, but good for us🩸
CPI data came in higher once again showing the deteriorating economy. Last CPI was manipulated, in order to bring stability into the markets & now they re-released the real data, showing how bad inflation really is.
CRUDE OIL TO HIT $160?😳 (Long analysis)What you are seeing on the chart, is price action of Oil prices on the 2D timeframe. Crude Oil finally bottomed at the end of November, just a little after Gold & since then has been making its way back to the upside. I believe we are now at the bottom of the market & getting ready for a long term uptrend towards $160📈
All commodities like Gold & Oil are in a long term uptrend from a technical stance hence why were buying. As western nations put a cap on Oil prices, Oil prices will keep shooting higher, making it expensive for countries who follow these sanctions. Russia has also threatened to stop doing business with countries who follow U.S. sanctions.
Will this PLANNED Oil shortage & price rise be the next pandemic? Is this what will force the everyday person to start switching to Hybrid & electric vehicles?
USDCHF LONG ANALYSIS TO $0.96550 (UPDATE)📈Our USDCHF position activated our entry and is now running over 50 PIPS in profit. Only the start of the corrective move, with more upside to go.
If you missed the first entry, feel free to DCA average from current market prices, as they are still relatively cheap.
Gold Sell to 1764! (UPDATE)Gold finally created another low & now running 1,220 PIPS in profit for Gold Fund investors😍 Hope everyone on this channel are still holding onto their Gold sells!
Gold is taking quite a bit of time to drop but only makes sense. Bare in mind, this downside is only a CORRECTION & corrections tend to move slow. Bulls will be back🚀
US 10 YEAR YIELDS (LONG ANALYSIS)The US10Y has moved as we expected from our first analysis and up 11% SO FAR🙌. We have finally seen a break above the wedge, indicating that bullish momentum is getting stronger. We still have plenty more upside to go, for the rest of Q1.
This long analysis is positively supported by DXY bulls & Gold bears, which we are currently witnessing take place as well. All markets playing out well!