EconomicsGlobal

EconomicsGlobal

As the US-China trade war rhetoric continues to heat up, with both countries enacting another round of tariffs upon one another, copper ($CPER and $HG1!) continues to take it on the chin. Consequently, for the first time since 2017, copper has closed down below its key weekly support level of $2.6225, a multi-year low for the industrial metal. To pour more salt...

EconomicsGlobal

As volatility has come back to the global markets with a vengeance, one headwind that continues to blow even stronger continues to be the US-China trade war. On August 2nd, the US unexpectedly imposed additional tariffs on Chinese goods, with the Chinese now threatening to retaliate in kind. As a result of this renewed volatility, Emerging Market stocks ($EEM)...

EconomicsGlobal

The S&P 500 was hit hard this week after macro headwinds such as the less than dovish Fed meeting, and more China tariffs, the $SPY has taken a beating over the last few trading days. However, despite this short-term rough path, it appears that a "Bull Flag" ("Flag") seems to be forming at the moment. If prices can bounce off the bottom of the Flag at $288, move...

EconomicsGlobal

After a volatile week, $QQQ has been hit by some short-term selling pressure. This in turn, has made its technical patterns look quite bearish at the moment. However contrary to this, it may appear that a "Bullish Flag" pattern may be forming. If the price can bounce of the bottom of the channel pattern ("Flag") at $186.31, move higher and breach the top of the...

EconomicsGlobal

After a breakout first half in 2019, Emerging Market equities ($EEM as a proxy) have begun to loose some steam. Since February, Emerging Market stocks have been treading water, in relation to their US equity counterparts, trading in an established range of $44-$40 since then. On a technical basis, $EEM weekly chart is showing that Emerging Market stocks are not...

EconomicsGlobal

Despite the market chatter of rate cuts by the Fed at the end of July, it seems that one area of the market that is not paying much attention are US 10-Year Treasuries ($IEF as a proxy). After posting an "Evening Star" pattern on July 3rd, US Treasuries have been selling off since. As can be seen in the attached chart, the RSI has been showing negative divergence...

EconomicsGlobal

One area investors and traders should take a look at is the Aerospace and Defense industry ($XAR as proxy), which is currently the best performing industry year-to-date (as of July 5th), generating 28.59%. On a technical basis, $XAR is trading above all three EMAs, indicating strong price action at the moment. Further, its RSI as been steadily trending higher...

EconomicsGlobal

A chart with better commentary

EconomicsGlobal

After laying dormant for most of 2019, Gold prices ($GLD as a proxy) took off in late May/early June 2019 and have experienced a nice rally since then, rising 7.7% in June 2019 and posting its best monthly gain for the year so far. However, it appears that the rally may be taking a breather. As of July 5th, prices have remained in the Fibonacci 100 zone($135.55),...

EconomicsGlobal

May's "Risk Off" has catapulted Long-Term Corporate Bonds (LQD) and 20+ Year Treasury Bonds (TLT) into two of the top 5 performing assets YTD: LT Corp Bonds: +10.41% 20+Year Treasuries: +9.02%

EconomicsGlobal

May's "Risk Off" has catapulted Long-Term Corporate Bonds (LQD) and 20+ Year Treasury Bonds (TLT) into two of the top 5 performing assets YTD: LT Corp Bonds: +10.41% 20+Year Treasuries: +9.02%

EconomicsGlobal Updated 

As the global economy continues to slow, and as global macro headline risks become more prevalent, oil has been the one asset that has felt the brunt of these developments. After suffering its worst week on record, loosing over 6%, oil is experiencing quite a bit of bearish activity. On technical level, oil is trading below both its 10-Day and 50-Day EMAs for the...

EconomicsGlobal Updated 

As the trade war heats up, risky assets are getting hammered, and one area where this is evident is in small cap stocks. On a technical basis, small cap stocks have been deteriorating. Since May, prices have fallen below both the 10-Day and 50-Day EMAs, with a deteriorating MACD to back it up . Furthermore, prices have suffered from lower highs and lower lows...

EconomicsGlobal

As patience grows thin on PM Theresa May's tenure and Brexit deal, global traders have put a beating on the British Pound, sending the $GBPUSD to fresh new lows for the year. To add more fuel to the fire, on a technical level, prices remain firmly below the 10-Day EMA without any sign of a reversal. With a political crisis looming, we see more downside for the...

EconomicsGlobal

With market volatility back in the global markets with a vengeance, and the US Dollar remaining strong, one EM equity market that has been hit particularly hard this year has been the Brazilian Stocks (EWZ). Sluggish growth forecasts, combined with waning support for the Brazilian President, has sent Brazilian Stocks to its lowest level of the year so far, down...

EconomicsGlobal

As market volatility has come back with a vengeance and the US Dollar continues to remain strong, one EM currency that has been hit particularly hard this year has been the Brazilian Real ($USDBRL). Sluggish growth forecasts, coupled with waning support for the Brazilian President has sent the Brazilian Real to its lowest level of the year thus far. The sharp...

EconomicsGlobal Updated 

As the trade tension heats up between the US and China, global traders have been putting pressure on the USDCNY. On a technical basis,the RSI and MACD are strongly trending higher, indicating strong momentum higher for the USDCNY. Further, with the ADX firmly in trend, there are no signs of the rally in USDCNY slowing down. If trade talks worsen or even fall...

EconomicsGlobal

As trade tensions heat up between the US and China, the AUDUSD seems to be caught between a rock and a hard place. In recent sessions, the AUDUSD failed to breach its 10-Day EMA, indicating weakness for the Aussie Dollar. Further, its MACD is stubbornly below the signal, and with the ADX in trend, it appears that this downtrend still has room to run. Look for...