Hey tradomaniacs,
The forex-market has been really choppy yesterday due to chaotic equityflow in the stockmarket as Hedge-Fonds are re-positioning.
After the big players were forced to generate margin by closing their red positions volume and open interest decreased drastically for stocks like Gamestop showing that there is no fuel for price to move up anymore. Also suspicious is that demand and supply were very equal and it looks like fonds are exchanging their contracts among themselves.
After a deleveraging-process that you can observe in stocks like Amazon, which dropped by almost -5% fonds took the chance and instantly bought shares back to re-position with longs.
Statistics are showing that fonds are primarily LONG in stocks, which means we might see a contiuation of the current rally and so soon a falling US-Dollar.
This chaotic cashflow out and back into stocks is obviously causing a weird price-action for the DXY (US-DOLLAR-INDEX) as its to and fro in demand and supply.
This current up-move by USD is by the way a very nice chance for fonds to sell as more retailers don`t want to miss the boat and buy.
As long as these reddit-groups are not causing too much uncertainy and fear we have to expect the primary trend to continue.
I`m still waiting for fresh CoT-reports but so far retailers are long against the large speculators.
DON`T get FOOLED by aby patter- THERE is no reason for USD ot go up (fundamentally) as long as the stockmarket stays bullish and BIDEN provides the promised liquidity!
LEAVE A LIKE AND A COMMENT - I appreciate every support! =)
Peace and good trades
Irasor
Wanna see more? Don`t forget to follow me!
The forex-market has been really choppy yesterday due to chaotic equityflow in the stockmarket as Hedge-Fonds are re-positioning.
After the big players were forced to generate margin by closing their red positions volume and open interest decreased drastically for stocks like Gamestop showing that there is no fuel for price to move up anymore. Also suspicious is that demand and supply were very equal and it looks like fonds are exchanging their contracts among themselves.
After a deleveraging-process that you can observe in stocks like Amazon, which dropped by almost -5% fonds took the chance and instantly bought shares back to re-position with longs.
Statistics are showing that fonds are primarily LONG in stocks, which means we might see a contiuation of the current rally and so soon a falling US-Dollar.
This chaotic cashflow out and back into stocks is obviously causing a weird price-action for the DXY (US-DOLLAR-INDEX) as its to and fro in demand and supply.
This current up-move by USD is by the way a very nice chance for fonds to sell as more retailers don`t want to miss the boat and buy.
As long as these reddit-groups are not causing too much uncertainy and fear we have to expect the primary trend to continue.
I`m still waiting for fresh CoT-reports but so far retailers are long against the large speculators.
DON`T get FOOLED by aby patter- THERE is no reason for USD ot go up (fundamentally) as long as the stockmarket stays bullish and BIDEN provides the promised liquidity!
LEAVE A LIKE AND A COMMENT - I appreciate every support! =)
Peace and good trades
Irasor
Wanna see more? Don`t forget to follow me!
Comment:
Comment:
Hey guys,
the market is still not moving as it should looking at fundamentals and news which is why I`m still staying aside.
A positive newsflow of economic data and very good earning reports plus a rising stockmarket are not really driving currencies as they should due to the fact possible stimulus could continue to boost US-YIELDS, which is currently in favour of the US-Dollar.
In this case we got two intermarket-correlations which are contrary making it harder for forex-pairs to move smooth and clear (especially risk-on-pairs such as AUD/USD and NZD/USD).
Another example is USD/CAD as the market does not really know where to go as CRUDE OIL currently rises with the US-Dollar.
DXY (US-DOLLAR-INDEX) is by the way creating its first divergences looking at Momentum and indicators such as MAC-D and RSI and I`m waiting for the market either to break through the key-resistance or to create a double-top.
Bond prices and yield are by the way inversely related.
#Patience
the market is still not moving as it should looking at fundamentals and news which is why I`m still staying aside.
A positive newsflow of economic data and very good earning reports plus a rising stockmarket are not really driving currencies as they should due to the fact possible stimulus could continue to boost US-YIELDS, which is currently in favour of the US-Dollar.
In this case we got two intermarket-correlations which are contrary making it harder for forex-pairs to move smooth and clear (especially risk-on-pairs such as AUD/USD and NZD/USD).
Another example is USD/CAD as the market does not really know where to go as CRUDE OIL currently rises with the US-Dollar.
DXY (US-DOLLAR-INDEX) is by the way creating its first divergences looking at Momentum and indicators such as MAC-D and RSI and I`m waiting for the market either to break through the key-resistance or to create a double-top.
Bond prices and yield are by the way inversely related.
#Patience