Why does Amazon look so bad? 😖 And what expect until end of 23? In period 2021-2022, the entire Sp500 index was pulled by FAAMG (Facebook, Amazon, Apple, Microsoft, Google).
Of all these five, Amazon looks weakest. Let's see why?
Amazon is engaged in Internet commerce 🌐
During the pandemic, the company felt great, as many people were forced to stay at home and order goods online.
However, covid ended and benefits stopped.
During period of low rates, people got into loans even more strongly.
Now that the key rate is >5%, it becomes very difficult to obtain and service loans.
As a result, people's incomes have dropped dramatically around the world 📉
Yesterday in an interview, Bill Gates said that development of artificial intelligence will greatly change the industry of searching for information and shopping on the Internet.
That is, the head of Microsoft says that because of AI, the business of Google and Amazon will not be sweet 📉
In general, such a situation does indeed take place.
Therefore, in a year or two, the familiar abbreviation FAAMG may become: FAM.
You can find even more profitable ideas in the profile header 🎩
If you are interested in analysis of any other asset - write in the comments and I will do it.
USA
BTC Up trend 3rd stage or crashing 24800 to 23600 is my target for the bottom falling from the week of 22nd to 31st high of 27800-27400. Note that the 19th of May was not the formation of a Head and shoulders as the right side of that pattern is higher and an H&S pattern right shoulder is always lower. I will wait to see confirmation of this pattern in the next week or 2. If we fall below 23600 then the uptrend is over and we could fall more 22k or 20k, all depending if Biden has to use the 14th amendment or not. In no case will the US be better off, there is no way out The great depression of 2023/24 starts June 1st. BTC will be forced to become a Currency and US law will be forced to just accept it or fall, Exactly how and why BTC was formed. The era of printing money to make only governments rich is over. We The people are rising and a new system of Blockchains will run the world. God Speed to the People!
SPX -More upside before relevant downside for US indexesHello traders!
We are still tracking a double three structure for a primary wave B to the upside on the Us indexes. In NDX the structure appears clearer in his last zigzag, and as we argued before a descending broadening wedge and a W pattern have targets above 13600.
Even if the wave structure on SPX is less clear, bounce from the bottom show corrective character but bullish pattern are present with higher targets. Below the Inverse Head and Shoulder highlighted:
The confluence zone that comprehends the Patterns targets, the fibo EW targets, and the volume cluster resistance is 4235-4326 for SPX and 13615-13900 for NDX.
We will hold our long from 12909.1 on NDX up to the confluence zone, where we will reevaluate the price action looking for possible short setups. At the same time we will look for a macro wedge retest on VVIX:
Bests
GMR
NZDUSD Long Setup H1 after USA news!NZDUSD is presenting a bullish setup, today the price has risen after the release of US inflation data. Currently, the price is located within a supply zone around 0.6370. My plan is to wait for a retracement to the 0.6340 area where I have marked a point of interest (POI), and there I will look for an entry point for a long trade. The trade target is set at 0.6390.
Let me know what you think.
Happy trading, everyone.
USDCAD Finally is It ready for a long?On USDCAD, we have great long potential, given the strength of the dollar, which is gradually rising. There will be inflation and GDP data released this week, so we may see some dollar increases between Wednesday and Friday. In this analysis, I have identified a possible long entry point at 1.3340. Please note that this is a setup defined through the Forex48 strategy. Take Profit for a long trade will be at 1.35.
Let me know what you think.
Happy trading, everyone.
Forex48 Trading Academy
NZDCHF Short Setup and Signal On this pair, I have identified a supply zone at 0.5650. Applying the Forex48 strategy, the zone has already been validated, so it is a good opportunity to look for an entry point. I have identified a Point of Interest (POI) within the main supply, and I will wait for a retracement at that point before entering short. L
et me know what you think.
Happy trading, everyone.
Forex48 Trading Academy
EURUSD Long Trade very soon!On EURUSD, a bearish setup is presenting itself today. I have identified a demand zone at the level of 1.1085 that the price will use as a retest point before continuing the descent to the 1.0960 zone, where there is a POI, an entry point for a long trade. The target is at the 1.1095 zone.
Let me know what you think.
Good trading to everyone.
GBPUSD Long before the US Rate? On GBP/USD, I am betting on a rise this morning before the rate announcement. I am expecting a weakening of the dollar, as large banks are starting to sell the currency in anticipation of buying it back at a more advantageous price after the data release. This setup comes with a very high risk.
Let me know what you think.
Happy trading to all.
Forex48 Trading Academy
USDJPY Short SetupWe currently have a bearish situation on USDJPY, and we could look for a short if the market creates a short setup in the 137.70 area within the highlighted supply zone. However, tomorrow, the US interest rate data will be released, so maximum clarity and attention will be required before setting up any type of operation.
Let me know what you think.
Happy trading to all.
Forex48 Trading Academy.
EURAUD - LONG SETUPOn EURAUD, we have a market that is consolidating on a demand zone after a sharp decline of 160 pips this morning following the release of the interest rate data in Australia. The goal now is to wait for a breakout of the high first in the 1.6403 area before looking for a rebound to enter long.
Let me know what you think.
Have a nice trading.
Forex48 Trading Academy
USDCAD Is It ready for the Fed's day?In USDCAD, we currently have a price that is in a long trend. Everyone is waiting for the big day of the FED, which is tomorrow. Technically, we have two scenarios: a short one, aiming for a price rebound in the 1.365 area within the supply I have highlighted, or a rebound in the 1.353 area within the demand I have highlighted, aiming for a long trade.
Let me know what you think.
Have a nice trading.
Forex48 Trading Academy.
The FED foresees "mild recession" later this year Multiple interesting developments took place in the U.S. market yesterday. First, CPI and inflation rate came in better than expected (although the core inflation accelerated by 0.1% year over year), sparking a short-lived bounce in U.S. indices, followed by relative stabilization in the market ahead of the FOMC minutes. Then, once the report came in, the market started to decline amid a sudden change in the tone of the FED officials, which now foresee a “mild recession” later this year.
This comes to us as no surprise since, already last fall, we noted that the FED projections were implicitly pointing to the recession in 2023 and 2024. However, this shift from an implicit tone to an explicit one is a major development that should not be overlooked, especially as the FED continues to indicate higher interest rates from the current levels. While hiking interest rates is very effective at fighting inflation, which will continue to decline toward the end of 2023, it is hardly bullish for the equity market.
Due to that, we maintain a bearish stance on the U.S. market and the price target for SPX at HKEX:3 400. We will pay a lot of attention to banking earnings (starting tomorrow with Citigroup, JPMorgan Chase & Co., and Wells Fargo and continuing with other major and regional banks in the following weeks). In general, we do not expect the current earnings season for stocks to be any better than the previous one. To confirm our bearish thesis, we will seek more downgrades in the outlook and decline in corporate profits. Furthermore, we will monitor the labor market, bank deposits, loan delinquencies, consumer spending, and rate of consumer savings (among other important metrics).
Illustration 1.01
The picture above shows the 1-minute chart of SPX. The yellow arrow indicates the time when inflation and CPI data were released.
Illustration 1.02
Illustration 1.02 displays the 1-minute chart of SPX and the subsequent price action following the release of FOMC minutes.
Technical analysis gauge
Daily time frame = Slightly bullish
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Illustration 1.03
The illustration above portrays the daily chart of SPX and fan lines acting as resistance and support levels.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
NZDCAD Long-Short or Long and Short?On NZDCAD, we have the price located in the 0.8375 area. According to my view, there are three possible scenarios, two bullish and one bearish. The first aims at a break of the supply zone in the 0.84200 area. The second scenario aims to wait for a retracement of the price in the 0.82900 area, where there is a very effective demand zone that has generated further demand within it, which will be our entry point in case the market goes down. Finally, the last scenario expects the price to bounce off the supply zone before falling to the demand zone.
Let me know what you think.
Good trading to everyone, bye.
AUDUSD Short or Long?On this pair, I have highlighted a very strong demand zone at 0.6570 - 0.6580. At this point, there is a possibility that the price will create an area to use as an entry point for a short or long trade. However, the possibility of a long trade does not exclude that of a short trade. Remember to look at both directions and never focus only on one perspective.
Let me know what you think.
Good trading to everyone, bye.
Relationship of the Fed interest rate + SP 500 index Logarithm. The time frame on both charts is 1 month. It is worth considering as an indicator of large market cycles in general.
I will not describe it, because I have already said a lot about it before. There is a correlation, which is logical, but not always. There are also reasons for this, which I have voiced before.
Expensive and cheap money - the regulation of the growth and decline of the U.S. economy (the whole world).
The Fed Funds rate , is the target interest rate set by the Federal Open Market Committee (FOMC) on the basis of which commercial banks borrow and lend their excess reserves to each other for short periods (usually overnight).
The Federal Open Market Committee (FOMC), the monetary policy setting body of the Federal Reserve, meets eight times a year to determine the federal funds rate.
The federal funds rate can affect short-term rates on consumer loans and credit cards, as well as the stock market.
By law, banks must maintain a reserve equal to a certain percentage of their deposits in a Federal Reserve Bank account. The amount of money a bank must keep in its account at the Fed is known as the reserve requirement and is based on a percentage of the bank's total deposits.
The rate target set by the Federal Reserve is achieved through open market operations. Since the Fed cannot set the rate's exact value through such operations, the actual value may fluctuate near the target rate.
The Fed Funds rate is one of the most important interest rates in the U.S. economy because it affects monetary and financial conditions, which in turn affect critical aspects of the overall economy, including employment, economic growth and inflation.
SP 500 Index .
S&P 500 (SPX) is a stock index whose basket includes 503 stocks of the 500 selected publicly traded companies with the largest capitalization on U.S. stock exchanges. The list belongs to and is compiled by Standard & Poor's. The index is published since March 4, 1957.
Major trend (long term)
SP500 index. The entire trend. 100th Anniversary
Plot of the index during the "Great Depression."
SP500 index. Pumping before the "Great Depression" Code 372-69
The march to an inevitable North American world hegemony is ...... picking up pace. - A lot, lately!
TLTR
The war in the Ukraine was essentially over the day it began. Now, with western interests notably starting to fade, it will start to make it's way to the back pages of daily reportage.
Why was this even an issue of US interests, to begin with? ...
Washington had this far fetched dream - although, not entirely without historical bases - to create a Polish-Ukrainian-Lithuanian superstate , entirely funded on US interests, unifying over 80 million people, populating 5 million square kilometers, right up against the Russian Federation and China's western sphere of interests. Nice try!
The real problem with this wishful thinking is multi-fold.
While those above mentioned peoples do have a lot of similarities in culture, language and historically undesirable (for them) outcomes, the facts remain the same;
- Ukrainians do not play well with others! Notably one of the most chauvinist cultures, their mistreatment of minorities is (or should be!) rapidly becoming legendary, the largest of which are the Poles;
- "My enemy's (i.e. Russia) enemy is my friend." - As incredibly profound as that may sound, it also makes for extremely unstable, impossible to maintain alliances;
- The Organization of Turkic States (Azerbaijan, Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, Turkey) do have a lot to say about this and, not surprisingly, they do not approve - to say the least;
- Then there is Turkey (a regional super power) which, not in the least, together with China, had managed nothing less than to broker a piece between Iran and Saudi Arabia;
In summary, a now defacto Russian-Chinese-Iranian-Turkish coalition is enough to make even the United States to stop and think twice what it's wisest next step may be, in the region. OK, so no big deal. The US blew ~7% of it's annual defense budget on this still-born idea but, since it can, will likely call it a day , in the very near future.
The EU , which is essentially nothing more than a German franchise, is looking at it's End of Days . The German industrial base managed to go 0-3, much like on the two previous occasions when they fielded their dream team , an outcome that is all but inevitable. Any doubt?! ...
Just this week Volkswagen and BASF both announced that they are "considering to explore their North American options with regard to future investments". That is the German Industrial Base ! - Apparently looking to seek asylum in the US.
German infrastructure and industry, which took over 30 years to build, only took two(2) short years to gut and to irreversibly break apart. No shock, there.
Germans always had to be the best at whatever was the vogue of the day and clearly, self-mutilation and ultimately, economic suicide, not being an exception.
(I spent a lot of time in Germany and to get a Wifi signal - cellular or otherwise -, the quality and frequency is right up there with Lebanon's. German pensioners blow their retirements on turtle neck sweaters because state sanctioned energy cut-backs simply turn off their central heating in the middle of January. The fastest growing manufacturing sector, as of right now, is wood-burning stoves! - The effect of which on the lumber industry is interesting, in itself but that's a whole other conversation.)
Germany's largest trading partner is China! (40% of exports.) Chine is notably not found of the present, vigorous German ra-ra which would have the average mainstream news consumer believe that Kiev has won the war last christmas and that right now, Polish troops are storming the walls of the Kremlin, under German leadership.
E.g. China, ultimately, does have an awful lot of pull in the case of German foreign policy and, lately, Beijing's patience appears to be wearing thin.
Long story short; "It's been nice signing with you Coco, but it's over!" - Bet on it!
China is dying! (Present tense.)
As stated previously, the inescapable reality of a demographic collapse - it's first, truly major wave - is descending on China at the time of this writing.
A total of 1/2 (50%) of China's population will not celebrate New Years Eve, 2035! - Leaving about 800 Million de-industrialized, de-urbanized, subsistence farmers in it's wake, by the middle of the next decade. As rapid extinctions go, this one is for the books. (As a personal reflection perhaps of mild interest, I have spent some time in the Mekong Delta, planting rice - just to see what it's all about. Afterwards I can safely state that there is no more expensive crop or an other, more soul-sucking, endlessly laborious occupation than rice farming! As for automation? ... What automation?! - It will never happen! To grow rice is a 24/7, all out battle with Nature, which uses up every living thing - including people and the environment - in a merciless fashion. I, personally, would much rather go back to pyramid building, as one of the slaves. My point being; Can anyone imagine china without rice? - )
In short, if there ever was a sure thing , this is it! (Feel free to do the rest of the math - i.e. a world without China.)
Now, having argued why "everyone dies, except for the USA" , that, of course, is not the same as all of them will walk off into the sunset with a whimper . (Although, under the circumstances, even that isn't very far fetched.) Who will be able to muster at least a last, dying spasm, is yet to be seen but if it happens it will be violent! Be prepared!
"Crises take much longer to unfold and run much deeper than anyone would expect."
All that is outlined above is already happening (no more "unfolding" ) and perhaps with traders' typically myopic view, a lot that is about to hit the fan could seem "unexpected", at that moment. Don't be caught off guard! Trade it with the lay-of-the-land in mind and make the most of what promises to be a once in many-generation opportunity.
EUR/USD Short Bias (from here on out, essentially for ever );
USD/CNH Long Bias (from here on out, essentially for ever );
US Equities & Treasuries over any off-shore, Bias
p.s. The US of A still maintains marginally beneficial demographics, with no near term dangers on the horizon. On the top of that, it also boast one of the few optimally dispersed populations - from a systemic point of view. E.g. "Globalization", in reality, is just a less pointed pseudonym for US world hegemony.
S&P 500- Still targeting 4300+Hello traders!
Many times in previous post we talked about a primary wave (B) to the upside to conclude above 4300 for the S&P.
We believe that we are currently going for wave 5 of C, as also the inverse head and shoulder suggests.
clearer picture on Nasdaq, where W pattern and descending broadenign wedge are targeting at least 13600 for this upside correction (end of double zig zag).
There we will re consider the possibility of a short, tracking the possible Wolfe Wave in the making.
For now, we opened a small long at the recent dip at 12909.1. Will update below!
Bests!
GMR