NAS100
The inflation score on NAS is now at -1 due to the rise in Core CPI, but a drop in the current inflation y/y value. The two scores on CPI y/y cancel each other out because although we saw a drop from last month, we are still above the target range of 1-3%. NAS is in a strong uptrend since late October of last year and has used this level of support as a means for higher highs. If the trend continues, we may see the index move higher towards the $18,050s again.
-Frank
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Despite this news, bitcoin is continuing to perform well. A bitcoin ETF was launched today on the New York Stock Exchange which sparked a large amount of demand at the opening bell. Price has finally reached the $48,000 mark that I've been looking for since November.
However, now that we have seen this move complete, what's going to come next? There are arguments against the crypto ETF because it has made bitcoin more regulated than before. If the crypto can't close above this strong level of resistance, we could be in for a pullback. -Frank
All pairs trading against the USD have lost points on their previous bullish scores. CPI y/y rose higher than expected and Core did not move. On the EU pair particularly, the inflation score fell by 3 points because of what happened today.
This could spell more downside for the pair because rate cuts are not coming any time soon to weaken the dollar. EURUSD is mixed on retail sentiment with a slight lean in euro favor on the COT report. -Frank
BOUGHT SPX500 / S&P 500 (VIP TRADE UPDATE)
Entry: 4700.02 (468.25 on SPY ETF)
Stop: 4763.20 (474.30 on SPY ETF)
Target: N/A
ANALYSIS
Price holding support here, which was previously resistance. Nice push overall despite stronger than expected inflation readings (CPI).
Locking in more, as this print actually worries me a bit... Will continue to monitor. - Nick
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BOUGHT SPX500 / S&P 500 (TRADE UPDATE) - From VIP
Entry: 4700.02 (468.25 on SPY ETF)
Stop: 4732.30 (471.21 on SPY ETF)
We're moving now! - Nick
ANALYSIS
Now that price is moving bullish, I am locking in some profit behind key market structure. Price seems to be attempting to breakout at resistance on the 4H, I will look to trail further on a bigger push
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Tech stocks are near break even on the day after taking a slight dip in early trading. Monday caught some optimism from investors as we approach CPI, but today looks a bit uneventful after a solid day yesterday. We may have to wait for more moves on USD-based assets until we get our first inflation reading of the year for the month of December. -Frank
Читать полностью…EURUSD is still clinging to a rising trend line on the 1D timeframe, but has not moved for the past five trading sessions. At the mercy of dollar news, this pair is waiting to make another move until CPI this Thursday. Higher inflation will likely cause the price to fall, and vice versa if CPI is lower. Core is a key component in USD sentiment as it is the Fed’s main inflationary gauge. -Frank
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CPI news from the US is probably going to have more of an impact on this pair than CPI from Australia. Although Core CPI is expected to come down on Thursday's report, the other two (m/m and y/y) are forecasted to be higher.
Right now, the pair looks like it has caught support on the 1D timeframe on a previous top and supportive trend line. The two rejections on the day suggest that price wants to move higher, and COT shows buying of the AUD and selling USD. Perhaps smart money is betting on weaker inflationary reports for the dollar. -Frank
AUDCHF is the most bearish score on the EdgeFinder now. A couple factors keeping score from becoming a strong bearish score (-10) are the labor market and COT data. Switzerland reported an uptick in CPI this morning which is what CHF bulls would want to see.
AUD will release their latest monthly inflation data today. However, they are expected to see a decline in the CPI y/y. If this comes to fruition, AUD demand will likely continue to dissipate. Interestingly enough, smart money is upping their long positions on Aussie and selling CHF from last week. Retail is also majority long. -Frank
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Inflation up, but the dollar rallied?? This is a common question traders have, but hopefully this explanation helps!
- Nick
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Gold is now leaning bearish on the EdgeFinder after higher CPI. What we are seeing now is a score flip from +6 to -4. This could suggest that gold has reentered bearish territory. Retail is still showing us a mixed sentiment overall.
Higher rates for longer could clog economic production which may help gold's bullish case, however. The metal also performs well during periods of high inflation. The problem is that the dollar may get stronger as a result too. -Frank
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US30 is now a strong buy on the EdgeFinder, making it the strongest reading of all assets to the bullish side. Our most recent reading showed a slowdown in the trend score as indices stall ahead of CPI news tomorrow. On the 1D timeframe, price seems to have entered a wedge pattern and will have to make a move above the $37,686 level in order for a breakout. Investors are hoping for a lower CPI number tomorrow to make that breakout happen. -Frank
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Gold is still at the same trend line on the 1D timeframe, unmoved as the EURUSD pair. Price could also be waiting for CPI before making another move. In this environment, it’s probably safe to say that a lower inflation number Thursday would be a good sign for the metal. However, if price breaks under this trend line, there may not be any notable levels of support until we get to the $1970-80s range. -Frank
Читать полностью…GBPUSD looks bullish on the EdgeFinder as well. Seasonally, the pair does well in the month of January and is one of the best performing months of the year on a 10 year average. The economy category is holding the score back from getting to a +8 or higher.
Although the UK is not reporting CPI this week, they are showing GDP numbers on Friday. The forecast of a higher GDP could be a good sign that the pound could be getting stronger. If we see a combination of weaker inflation in the US and higher GDP in UK, the pair seems likely to find more upside. -Frank
BOUGHT NAS100 / NASDAQ UPDATE (Entered 4 days ago)
📈 Bought at: 16314.7 (Floating +290.40 pips 🔥)
🚫 Stop: 16515.51 (Trailed: +200.81 pips above entry)
-Frank
Smart Money is Buying Gold 🧐
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