Looking at the Monthly chart of the CAC40 you can clearly see its heading into a Wall of Resistance. Fibonacci cluster, LT T-Line Resistance, Wedge Resistance and Price resistance. This is the real test for the CAC40 bulls. Clearly the bulls have the QE wind in their sails but it is PARAMOUNT that they confidently clear the Brick Wall. Tentative Elliott Wave Count...
Eur vs Usd - 1 months Long-term view 1.0450 main support . The break of support with the closing of the the monthly candle inside downward channel push the cross to parity by June or at the September 2015. Trade from 1.0450 - Area of earnings up to a minimum of 2001 , stop at max last month ( March 2015 ). The FIB retracement from top 2014 seems to confirm the...
$EURUSD Appears to have failed below the #FOMC high, carving a lower high around 1.0950. Shorts valid with stops above swing high, targeting the bottom (1:2.5 Risk:Reward), continuation. Stop should be trailed if aiming for continuation.
To be transparent and clear I am short the market, fully invested. This is my further attempt to be objective. Bears will justify many reasons why QE4 is not possible. At the very least it's not probable, but in all honesty, after reading Bernanke's SA on reasons for using QE in a deflationary cycle, there is no reason the US will not go the way of Japan, by...
The Big Bubble ... as every time this time is different ... it's true this time the outbreak was unprecedented... QE effects from the beginning - start end 2008 S&P(orange) +186% - USD/JPY +22% USD/EUR +15% Nikkei (blue Mountain) +165% JPY/USD -22% FTSE100(blue points) +80% GBP/EUR +21% GBPUSD+3% DAX(green points) +201% EUR/USD -15% MIB Italy( brown points) +46%...
Bubble from QE on Italy Stock index Compensation loss index value The devaluation of the euro is offset by index 06062014 index 22500 eurusd 1:36 180316 index 22500 eurusd 1:05 theoretical value index change at 1.05 is 17500. The QE and the weakness EURUSD have created a bubble in the value of 5000 points.. is not now but in the end the bubbles burst...
Earlier this month, the idea of lumber being a signal for economic data was brought to the table (here). Lumber is not necessarily a trader’s first go-to for evaluating economic forecasts, but there is a striking resemblance in trend for lumber and the ISM manufacturing PMI data. As lumber prices dive, manufacturing data tends to do the same (and vice versa)....
ECN's QE has been republished, market always buy the news, sell the truth. So EURUSD has been near the bottom. Create long position at Weekly Channel support around 1.0400. What's more, 1.0400 is 100% expansion after breakout 1.2200 trend line support at 2014-12-22..
For those of you who are following my analysis on a regular basis, you should not be surprised by the situation of GOLD. I've already written in previous analysis the level of LEvel and the headline goal. Although 1040-1060 is the tricky level of GOLD bellow which the precious metal may fall well bellow 980. But we are not htere yet. Having said that, the...
Silver is, at times, violently volatile and noticeably a proxy for the US dollar. With the dollar at levels not seen since 2005 and 2006, sentiment for precious metals remain weak. There are two factors for this, and it does not matter which one chooses. The dollar has been able to hold current levels via the perception that the Federal Reserve will - at some...
Maybe a little labour intensive for some but a safe way to book profit without much risk. Buy and sell in 2 units at support and resistance. Move stops to protect positions. Take one unit profit at either support or resistance. Wait for break out in either direction. Repeat until breakout. Or leave it alone if it looses it's neatness and starts getting...
The Swiss franc is lower on the day amid speculation that the Swiss National Bank (SNB) will intervene in the foreign exchange market in order to actively weaken the currency. As you can see by the comparison, gold tracks the Swissy rather closely. Interestingly enough, gold's all-time high of $1,923 ended at about the same time the SNB decided to peg their...
Price action broke from consolidation, and hovered underneath resistance at $333. Instead of trending lower, price action climbed the ascending trend line and rallied to $306. As said many times, these rallies are almost sold. This one was no exception. Technically speaking, traders should have exited their trades after the ADX ticked lower, which is the first...
Historically, gold and the US dollar move inverse of each other. Time to abandon this preconception? The US dollar is going strong, but is it time to change the preconception that a strong US dollar is automatically bad for gold? Perhaps. The inverse relation has historically occurred, but in times of uncertainty, the inverse breaks and gold typically remains on...
(Originally posted yesterday with appropriate charts) Gold takes a breather, while negative data continues to pour in. Gold’s inability to close above $1,300 is a mild hit for bulls, but prices will likely consolidate prior to the next leg higher. Prices declined to $1,280 per toz., just above the descending trend line, now support. The likely scenario is that...
The GLD has seen inflows increase since the SNB debacle, up 1.57 percent today. If anything was learned last week when the Swiss National Bank (SNB) unequivocally shocked the markets is, gold is the ultimate central bank hedge. Gold has always been a go to during times of uncertainty, but it is the simplest way to hedge away currency and counter-party risk; and...
Gold is up 9 percent YTD. Gold is on a tear since I warned that negative price action was waning on January 6 (here). Gold has been able to overtake the $1,240 per toz. hump and chug along on global growth concerns. The IMF, just among the bunch, lowered the outlook for growth prospects; and the second largest economy – China – is pulling back, down to the...
Arguably the biggest news event this week will be the ECB press conference Thursday 14:30 CET. Officially its just a periodic meeting where they convene to vote on their benchmark interest rate. But in reality, they will discuss the purchase of government bonds and all eyes will be on the press conference after the rate announcement, as the market expects Draghi...