After touching 101 on the dollar index, we had a huge selloff in the overnight trading session that took us to the 200d MA in the 1 hour chart. As we enter the NA trading session, its likely that we will see some type of bounce here in the dollar and a retest of the 101 mark. The following level to the upside in the DXY can be found at 103. However, if we are...
The 10 year treasury market hit 2.98% overnight, just 2 bips shy of the 3% mark before rallying back up. As we mentioned earlier in the week, the 3% target was the likely area the treasury market wanted to revisit so it would be likely that it will see buyers coming in around there. As of now, the risk on nature in the overall markets suggest that the treasury...
The sp500 caught a huge bid in the overnight trading session helping it to break through our resistance at 4465. As we speak, the market is developing an inverse head and shoulder which is usually a sign of more upside movement in the market. Our target for the breakout can be found at 4530 and 4640 depend on the NA trading session unfolds.
Bitcoin and the cryptocurrency market in general survive the dip below 40k over the Easter weekend and is quickly bouncing as we enter this trading week. The price action in the bitcoin market is giving buyers hope that any dips to critical levels is being meet with buyers coming in quickly. The next target to the upside for bitcoin can be found at 41.5k. If we...
The crude oil market has been making a low trek back up ever since the Biden's SPR news and it appears that we are about to retrace the entire move and break higher. This trading behavior would be bad for the Biden Admin and inflation in general. However, it does suggest the overall tightest in the oil market. As of now we are settling in at the 103 mark with...
Over the Easter long weekend, the gold market hit 2k during low liquidity trading before pulling back. This gave us a clue as to what the market wants to do and will establish precedence for this weeks trading. Our clear target now is 2k as the price of gold pulls back into the POC zone of 1975. We will be looking for dips to buy gold back up to the 2k level with...
After the strong move in the dollar index leading into the Easter long weekend, the dollar index has settle at our covid range level of 100.7. As we speak, the consolidation at the highs of this range suggest to us that the market is still bullish on the dollar index and that we are likely to see further upside. The next target for us on the dollar index would the...
The treasury market has been dropping hard with a predicted target at 3% on the yield. Currently we are only sitting at 2.9%, which means we still have another 10 bips to fall before the market is satisfy with pricing in the aggressive FED tightening cycle. We are looking for a break of the most recent low at 119.45 and the next target for the 10 year treasury...
After the Easter long weekend and low liquidity trading, the SP500 has developed a strong sideways trading range within the 4415 and 4365 zone. This is typically to see the market create a neutral trading pattern during times of market closure. As we enter the new trading week, the sp500 range is looking like a positive setup for a move to the upside. As always,...
After tumbling earlier in the week to below 40k handle, bitcoin has bounced back and began to consolidate above 41k. A good sign for bitcoin bulls as the short term sell off is being met with buyers coming in to hold the 40k level. At this point the market needs to hold the recent support at 39k or else it will not look good for the bulls. As for the buy side, if...
As the crude oil market trades and holds above the 100 handle, we can being to speculate at which price this market will pull back to too allow dip buyers to reenter the trade. We anticipate a pull back into the low 100's handle would be a great place to start accumulating. Any levels at 100 or 98 would be a sufficient pull back to get back on the long side for...
Gold has slowly broken above the 1960 mark and has moved its way towards reclaiming 1980. The next logical step for gold is a retest of the 2k handle. At this point its a matter of when not if it will retest 2k. With a slew of big economic data coming out this morning, there is a good chance that there could be enough volatility to take us higher towards the 2k mark.
After breaching the 100 handle on the dollar index, we have seen several central bankers from the BoC, RBNZ and now perhaps the ECB shift towards tighter policies. This is helping to pressure those currencies higher and as a result is helping opt drive the dollar index lower. As we move pass these events, will the market shift back to stronger dollar? By looking...
The bond market appears to making a corrective wave back up after creating a new weekly low. As we move higher in the bonds, the technical analysis is suggesting to us that a short term reverse head and shoulder may be building up. With the neckline at 121.35, a break of this resistance can quickly see bonds trading back towards the 122.07 or 123.10 levels.
The SP500 has developed a sideways trading range with the highs at 4460 and the lows at 4385 since yesterdays trading session. As we enter the NA trading session this morning, we dont have enough clues as to which direction the market wants to go, although the slew of economic data suggests to us that this range will not hold for long. If we get a rally back up,...
We mentioned yesterday that bitcoin could drop lower towards the 40k or even the 38k handle. It appears that we have found a new short term floor and the market is bouncing back up. With the big CPI data from the USA being lrelease this morning, we can anticipate volatility in the markets. In which direction it will go? That is difficult to predict until after the...
As we anticipated, the crude oil market wanted to retest that 93 handle. After bouncing from that area we believe its safe to take cautious positions in oil going long with a clear stop below 93. If this bounce is real, than 93 would serve as a near term floor for crude oil as the market beings to pick back up on its way towards 100 handle.
As we mentioned in yesterdays post, we had anticipated gold would pull back into the overnight zone around 1940 before bouncing. After doing just that, we quickly moved again towards the 1950 handles. Now as we write this mornings post, gold is approaching 1960 with the next resistance at 1965. If we can get a clean break and closing above this point than it would...