Yields
Copper is Screaming! Are you listening?Why is Copper so important to track and what can we learn from studying its price action. Copper simply put is the most used base metal in the world and really powers every aspect of world. Doctor Copper is telling us something.
Copper has had an impeccable rally of the lows, this has been confirmed with the major rally in copper mining stocks.
In this chart we have overlayed the inflation rate in orange with the price action in copper.
The inflation rate has a delayed reaction based off of the price action in Copper.
What we can observe recently is the price of copper topping 112 days before the inflation rate. Copper had a significant decline which was followed by a decline in peak inflation.
Over the last 148 days, Copper has rallied 38%. Could this mean that we are about to see a delayed spike in the inflation reading?
Do you Hear Lumber Screaming?Lumber is at a critical inflection point.
Its likely telling us that Central bank policy is about to experience more inflation if they start to ease to soon.
If Lumber continues to rally, its screaming more housing inflation could be around the corner.
Since we have a major Technical Topping formation in play, Lumber is still vulnerable to more downside which could also mean the housing market has much softer prices ahead.
If lumber is to show nay chance of negating this bearish pattern it needs to close above the yellow trendline for 2 consecutive weeks.
Is lumber Spiking?This Lumber Weekly chart clearly shows the unique parallell range that confirmed a breakdown.
Now to determine what likely happens next we wait to see if we get a close above or below the weekly key channel Resistance line.
If rates remain soft we will likely get a continuation move to the upside.
MICROSOFT - EARNINGSMSFT is trading under key resistance as seen by the white trendline. The price action and trend still favors downside bias however there is a key gap fill around $257 that would be a perfect short level if it popped off of earnings.
Based off of the rally in the indexes, MSFT has been a lagger in tech which could be displaying relative weakness.
Is Coinbase Leading Bitcoin?Coinbase had an epic reversal in todays session: a Bearish Engulfing Daily Reversal to be exact. Just like Bitcoin had a multiday rally Coinbase has had a great multi day rally.
Hitting the next support will be telling for Crypto. If we lose key support on Coinbase - Bitcoin Liquidity will likely be strained.
Coinbase needs to recapture the red trendline for any meaningful move to continue...unlikely.
BONDS YIELD PREDICTION!!!!! US02YDESCRIPTION: In the chart above I have provided a macro analysis for 2 year bond yield on the Daily Timeframe.
POINTS:
1. Since the beginning of this upward trend on January 2022 we have seen that bonds and the overall market are said to share an inverse relationship but during pivotal moments that has not been the case as you can see that the stock market has risen along with bonds and vise versa .
2. Deviation in SUPLY & DEMAND POCKETS is clearly shown to be every 1% RISE IN YIELDS . (Refer to BLUE & ORANGE Horizontal Lines)
3. Before entry is made into a new DEMAND POCKET price action has a distinctive pump that has occurred several times. (Refer to white lines between SUPPLY & DEMAND POCKETS).
4. Predicted rise was formulated by using the average of previous last two pumps of +40.92% and +54.21% = +48% when rounded.
5. Average does in fact coincide with previous point of resistance when bond yields rose to 6% in the early 2000's. (A POINT THAT I WOULD CONSIDER TO BE A PIVOT POINT)
6. When you observe MACD we can also conclude that downward pressure is looking for relief like in past occasions.
SCENARIO #1: Bond Yields continue to rise and follow uptrend into early 2023 which can then signify that a market bottom is yet to be confirmed.
SCENARIO #2: Bond Yields break crucial SUPPORT OF 4.000% and will invalidate current setup. Possibly being followed by capitulation in the stock market since falls in yields seem to be more closely tied to falls in the overall market than the inverse relationship.
TVC:US02Y
XAUUSDHello traders.
Gold is unstoppable. It has not retraced at all to any fibonacci levels or whatever.
Last time it touched the demand area of 1618, it bought straightly up. Two consolidation boxes during this formation of uptrend.
On 15 of August, close to 180x area, there was the starting point of the last bearish leg for gold.
price violated 1680 area and created new key levels around 1616. Now, due to weak USD the price has been immensely increased.
1780 - 1790 area may give nice sell opportunities but I am more into the scenario of 1805 area.
This seems to be more interesting in price action of recent months and this will be the key resistance level range.
It is highly possible to open at highs and go for 1800 psychological point.
However, patience is key and thing will get cleared on Tuesday's night and starting of Assian Session, when it may give reversal for gold.
Keep at your watchlist DXY, US10 Years Yield Bonds as well 30 years Yield bonds. When these three start getting green and upcoming week
fundamentas related to dollar give a breath to the currency, gold will drop.If they support dollar. Otherwise, this scenario is not valid anymore and
we go for a break - retest of 1813 area and long continuation.
Multiple ideas either for buys or for shorts. Others with good RRR other with poor. But still valid.
Good luck!
XAGUSDHello traders.
These are my scenarios for possible xagusd continuation.
tomorrow is Monday so I propose stay away from the markets until the makers initiate the week's structure.
Be careful of mid week reversal - Tuesday night.
The orders of sell and buys are indicating in order to have a benchmark.
For entries do your own analysis in lower timeframes.
Keep an eye of Yields 30Y and 10Y as well as of DXY. If they are red this will fly and vice versa.
Retails sales from USA incoming this week with pessimist point of view.
23.8 as Fib Retracement level is important.
Gold Weekly Forecast 14-18.11Last week I targeted 1760 level and the bias was right. Price moved even more and faster, without retracements.
This week my bias is bullish again and I will share my confirmations with you.
I am expecting from Gold to go a little bit higher, reaching daily manipulation zone and the monthly pivot point. After that a retracement is expected.
Price moved up very fast, leaving an inefficiency behind. For a healthy trend price must to move without imbalance or small one.
Other reason that I am expecting a retracement is, because lot of retail traders seeing this big move will buy Gold. The institutions want their money and will manipulate price down.
Price should go down and test the previous daily manipulation zone, before continue up. This is a very strong level of confluence - manipulation zone, monthly pivot, Fibonacci retracement (61,8%-70,5%), 50% of the consolidation, strong psychological level, very strong SnR. This will be the perfect scenario.
If you have issues to draw the manipulations zones, the indicator will do it instead you ( SFC Smart Money Manipulation - Zones)
COT Reports will be released on Monday, so I can not include them into Analysis, but we have enough information to make the forecast.
Macroeconomics
The market sentiment has changed.
CPI reading showed significant slowing down of inflation. FED already announced that they can hike the rates above 4,5% if the inflation is not going down, but now there are speculations that FED will be more dovish. Market already priced in and made huge bullish impulse move.
There are speculations that FED overreacted and the monetary policy is too tight ,thats why they will go with smaller pace or even pause the rate hike.
There are signs that China is easing the Covid restrictions. This should increase the demand for Gold.
More info you can get from the my monthly economical report.
Right now the Yields are not so attractive for the investors and the issues with cryptos leave no choices for investments, except the metals.
Buying banks + investors = big bullish moves
Sector Metals
The whole sector is going up. I dont see divergence. This is confirmation that there is no anomaly and Gold should continue up.
Advanced Market Structure
Higher highs and lower lows can be labelled from everyone, even indicators - for example "SFC Smart Money Manipulation - Structure, Liquidity".
On this chart I am presenting you an advanced understanding of the market structure. This give me the ability to make projections and get idea how eventual the market can move.
According to my count, price formed Long Term Low (LTL) and this is indication that this Low will hold, at least for a while.
Price already broke the key level, which is indication that the main trend is changing. If price break the critical level this will be the confirmation.
On this chart we can see that price is forming Head and Shoulders reversal pattern.
This chart looks like to me as ICT buy model.
Top-Down Analysis
Monthly
Price is making a huge monthly candle. This is typical, when institutions are buying. When they are buying, we should buy too :).
If we analyse the candles, we will see that when price is dropping it makes small candles, but when is pushing it makes big candles. This means that the main trend is bullish.
Weekly
Pretty much the same story - very big weekly candle, definitely anomaly in price action, meaning that something is happening.
Price already made high confluence buy setup and we saw the result. After this big candle I am expecting some retracement to a cover part of the imbalance.
Daily
On daily TF price is breaking every last lower high, meaning that structure is changed or changing. Behind the big candles are the banks.
Yields
10 Years Yields already pivoted by forming the Head and Shoulders reversal pattern.
2 Years Yields also turned very sharply, by breaking the bullish channel.
The bullish Yields were only competitor for the Gold, but they are no longer an issue. Now Gold can start to acting as inflation hedging asset.
GDX and XAUUSD
They both go up, no divergence. It is a confirmation for the direction. GDX already started its retracement. Now is XAUUSD's turn.
My opinion is that GDX will test the consolidation, before continue up.
Last few weeks XAUUSD was underperformed against GDX, which lead me that XAUUSD will retrace deeper to 50% of the consolidation, where is my target and confluence of confirmations.
Gold-Silver
It seems to me that Silver is showing more bullish momentum last few weeks compared to Gold. It already reached a consolidation zone, which means to me, it will retrace or consolidate again. The retracement already has started.
Gold should follow Silver and will retrace.
Elliot-Wave Analysis
I follow and label the price for a while. My last count suggested that Gold will make a big retracement or started new impulse up ( I wrote in my last forecast). In current economical situation and price action, I believe that the new impulse already started.
VSA
On this chart I marked the current Wyckoff patterns and made my projection for the future patterns.
In my opinion the last lower low was only a fake-out(spring) to clear the major liquidity at 1680 area.
On this chart we can also see that price lost the bearish momentum in the consolidation and created bullish one. Another confirmation for the new bullish trend.
Momentum
From this chart we can see that the momentum already turned and now is showing bullish momentum.
Price already reached the long term moving average. From MA normally price bounce a bit before break it.
RSI is has bullish momentum and is about to break the consolidation range. Right now is in overbought condition, which is one more confirmation that Gold will retrace.
For more information contact me.
What is happening to Bitcoin and Crypto?!! Wow.... I think that yesterday is a day that no one was expecting and was ready for! As we are seeing Bitcoin making newer lows due to the bad environment we cannot tell what is about to happen next. But we have some data to look at.
We are seeing that BTC wallets with 10k BTC are making a new ATH and they are not getting liquidated. Most of the people are interested in opening a low the moment BTC hits a newer low resulting in a strong bounce back up. The DXY is on the edge of falling down just like the Yields. Tomorrow the CPI numbers will get released so expect even more volatility in de markets.
Trade safe and don't let emotions take over your trading decisions.
US-DOLLAR falls with rising YIelds? NonSense!Hey tradomaniacs,
we currently see weird correlations as YIELDS are going up (especially shorter-term-yields which are likely to move up faster when facing a recession) while the US-Dollar falls.
As you might know, this makes less sense and we should soon see who one of those is lying.
The mixed NFP-Result which was actually bearish for stocks (not in detail due to poor jobs) is causing a little bit of confusion.
Technically we could see a bounce in USD... or a breakout soon? Will YIELDS go down and stocks pump? Since market bets against FED its getting tricky again!
We might see again correlations with sense and more moves after CPis on thursday.
What do you think?
Apple stock historically bottoms out at higher earnings yields In last 20 years, apple stock has 'bottomed' out at earning yields in the 6-10% range. However, in the past it was a smaller company with a high growth rate potential. Current earnings yields on apple are in the 4% range and now its a near 3 trillion dollar company. I dont know if thats an apples to apples comparison ;) NASDAQ:AAPL QQQ MSFT
US Dollar Index ForecastDemand for the dollar is usually high as it is the world's reserve currency. Other factors that influence whether or not the dollar rises in value in comparison to another currency include inflation rates, trade deficits, and political stability.
The dollar has been gaining strength against the currencies of other major economies. The dollar is strong because the US economy is healthier than those of many other countries and because the Federal Reserve keeps raising interest rates.
Does the dollar get stronger with higher interest rates?
But the overriding reason for the strong dollar is the fight against inflation. The Federal Reserve is ratcheting up interest rates to attack the current near-constant rise in prices and said last week it expects more hikes this year. As it continues to raise rates, the dollar will strengthen.
<-- https:// tradingeconomics.com/ united-states/ interest-rate --->
How do bond yields affect the dollar?
Bond yields actually serve as an excellent indicator of the strength of a nation's stock market, which increases the demand for the nation's currency. For example, U.S. bond yields gauge the performance of the U.S. stock market, thereby reflecting the demand for the U.S. dollar.
<--- https:// ycharts.com/indicators/ 10_2_year_treasury_yield_spread --->
Strong Reversal SPY/SPX IHFundamentals: Slowing growth from Google and Microsoft continued our confirmation of a slowing macro environment. Microsoft reporting slowing growth in cloud revenue. Google even said their strongest ad flow of "search" saw a decline in revenue. Ad spend being the canary in the coal mine indicates the market is ready to continue it's collapse. META continues to blow through cash to build the metaverse.
-3 month/10 year yields inverted
-Yields/Dollar continue their climb - taking a break the last couple of days.
-BOJ intervention
-Canadian central bank increasing just .5
-Chinese Xi reigns again and this time with complete dominance - Speaks of a great challenge ahead - Taiwan in the crosshairs
-Russians talking nuclear attacks
Technical Analysis: The low from Sept 6th, the downward sloping trendline from August 26th, the 50 day MA, combined with the upward trend line from the recent lows created a strong resistance after a 3.5 day run up. ES1! futures stopping a few ticks below 3900. 3 day pumps are the norm.
-Gap at 408.6, 200 MA and downward trend line from the ATH creating the next target to the upside.
Outlook: I definitely believe there is more downside ahead for the markets into 2023. Although today's price action and macro indicators are pointing down that does not guarantee we have seen the end of this rally. Upside gap to 408.6 is being eyed by the bulls. Perhaps by no coincidence the 200 MA is closing in on that price. Those combined with the downward trend line point to a mid November rally adjourning. Bulls looking to load back up around 375 SPY. Breaking through 375 shows the bears have gained control and we have entered into a longer correction formation or new wave down.
US10Y Huge Bearish Divergence on RSI calls a drop!The U.S. Government Bonds 10YR Yield formed Lower Highs on its 1D RSI while the price action has been trading on Higher Highs. This is a major Bearish Divergence that technically calls for a price reversal to the downside.
What's even more interesting is that every time the same RSI Bearish Divergence has been formed in the past 12 months, the US10Y always pulled-back and hit its 1D MA50 (blue trend-line). This is currently at 3.563 (and rising).
A reversal on the bond yields can have a major impact on the financial markets, especially ahead of next week's Fed Rate Decision, as it is negatively correlated with stocks and Gold.
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sp500 and apples earnings yield look wimpy #aapl #spywith rates rising to fight rising costs, stock earnings yields might need to rise to compensate investors for the risk. shown in the videos are some historical earnings yields, dividend yields, and shiller PE ratios. NASDAQ:AAPL AMEX:SPY SP:SPX NASDAQ:MSFT