Take a look how we navigated you correctly about USDINR!
The well-respected Reserve Bank of India (RBI) has been active in fx markets.
This gives us a flashback to Turkey's Central Bank, when they sold fx reserves to keep the currency. We all know that it ended badly and things usually escalate fast.
Keep your eyes on USDINR, as we expect it will soon break out.
USDJPY has been rallying like there is no tomorrow.
Yet as we have seen before, Japan tend to not digest USDJPY above 150.
We ask bulls to be careful of an immediate unexpected intervention!
Have you ever wondered why on Earth equity traders cannot take their eyes off from US10Y chart?
The answer is the alternative trade. What does that mean?
When you invest in a company, such as buying its stock, you are taking risk. However, US10Y are riskless. This means every time you take a risk, you have to look at what the other less risky investments promise...
Today, TESLA will announce the quarterly earnings after market close.
The setup implies the stock is ready for the big move.
Question is where.
We believe it is down because of shrinking profit margins and ERP.
Nasdaq is forming a very clear bullish wedge form which we think it gets ready for new highs.
We suggest playing the breakout and putting the appropriate stop loss based on your risk profile.
The very reason Oil, along with other commodities rallied on Friday is because of the weekend hedging. Weekend did pass quite calmly, thanks God.
We do believe it is time to Friday's bid to fade away.
Fear stemmed from Israel-Palestine conflict feeds the Gold markets.
Of course, all fears fade away as time passes.
This is important to understand. Question is which scenario is Gold going to follow?
We believe 70% chance it is scenario 1 and 30% chance scenario 2
Take a look at how we navigated correctly the whole EURUSD move.
This is not 'We told you so' brag, simply trying to share our knowledge and way of thinking about the markets.
We believe some relief is on the way for EUR because of the moves in the US10Y.
EUR has been sliding for some time.
The downtrend channel, as shown, has been well intact.
EUR price respect channel border. No channel lasts forever.
The question is will this channel be broken to lower or higher?
Our bias is lower.
EUR bulls are in trouble, as always.
ECB never allowed highly indebted EU countries to have a higher yield. Italian, Greek government bond yields are lower than the US which makes zero sense.
Here is a catch: you cannot have a lower yield but strong currency.