The difference between success and failure in Forex trading is very likely to depend upon which currency pairs you choose to trade each week, and not on the exact trading methods you might use to determine trade entries and exits. Each week I am going to analyze fundamentals, sentiment and technical positions in order to determine which currency pairs are most likely to produce the easiest and most profitable trading opportunities over the next week. In some cases it will be trading the trend. In other cases it will be trading support and resistance levels during more ranging markets. Big Picture 3rd December 2017 Last week, I saw the best po...
With so much news hitting the market on Friday, I decided to stick to the benign analysis of the final character of my Modern Family I presented on Facebook Live-Biotechnology-IBB! (To read thoughts on the market and analysis, please refer to the ETF section). He is called the Family’s Big Brother although also known as Big Pharma. Why do I address him as Big Brother? IBB has a hand in everything you do. From headaches to depression to chronic pain to cures for most illnesses,yep, that’s IBB. IBB is the most highly speculated and volatile sector. His parents (XRT IWM) and siblings (KRE SMH IYT) may be great at tracking the US economy y...
Talking Points: GBP/USD nears levels last seen on UK referendum day, nearly 18 months ago. Brexit talks are moving forward but nothing has been decided yet. GBP/USD may need to consolidate ahead of the expected Fed Fund rate hike. Fundamental Forecast for GBP: Neutral We remain neutral on GBP/USD with a lot of the recent positive news, both economic and political already priced into the pair. Any sell-off however would offer an opportunity to go long GBP on a medium- to long-term basis where we see GBP returning to pre-referendum levels. As it is, a close above 1.36500 would see cable at an 18-month high and back to the June 20, 2016 cand...
As the U.S. stock market continues to rally relentlessly it is most likely on its path to set a major top and correct sharply anytime soon. If and when that happens we believe at InvestingHaven that capital will rotate out of U.S. stock markets into emerging stock markets. So the question is, if that is true , which emerging market to choose? InvestingHaven’s research team strongly believes that China must be on your radar. China’s stock market outlook for 2018 is bullish to very bullish, find out in this article why we believe so. China’s foundations: amazing +6 pct economic growth in 2018 and beyond It is amazing that there are count...
The new monthly cycle of high frequency economic data has begun. The manufacturing PMI shows the synchronized global recovery is continuing. The service sector and composite PMI will be reported in the week ahead. They are unlikely altering the general expectation for robust growth in Q4. Even the disappointing US auto sales (17.35 mln seasonally-adjusted annual pace vs. expectations for 17.5 mln and 18.0 mln in October), the US economy appears to be accelerating. The Atlanta Fed GDPNow points to 3.5% Q4 GDP.The New York Fed GDP trackers see a 3.9% pace. The November jobs report takes center stage in the week ahead. Although the month...
The Australian dollar managed to stabilize amid OK data. A very busy week awaits the Aussie, including a rate decision and the GDP data. Here are the highlights of the week and an updated technical analysis for AUD/USD. Data coming out of Australia was mostly positive: private capital expenditure came out as expected but came with a small upwards revision. Building approvals already beat expectations outright. China’s manufacturing PMI picked up in November. However, this was not enough to tackle the rising US dollar: a potent mix of data, including GDP, consumer confidence, and new home sales, joined an upcoming tax reform and up...
At this year’s Sohn Investment conference in London, some of the renowned hedge fund managers shared their best ideas about investing next year. According to a report from Financial News London, money managers from Lansdowne Partners, Och-Ziff Capital Management, Andurand Capital, Polygon Global Partners, Bodenholm Capital, and Pelham Capital talked about their investment ideas on technology,stocks, and oil at the conference. Each year, the Sohn Investment conference is held by the Sohn Conference Foundation to bring investors and hedge fund managers together. The conference was called by the Wall Street Journal as “the Superbowl of...
The “Santa Claus rally” refers to the tendency for the S&P500 to do well in December, and specifically the last part of December. We can assess this quantitatively with the first chart showing the average price experience across the year by trading day – it also shows how 2017 has been tracking against the averages, and so far it has been lining up reasonably well (except for defying seasonal gravity in Sep-Oct). But perhaps more telling it the detailed statistical table of monthly returns. It shows December ranked no. 2 in terms of average returns, first equal on the percentage of times returns were positive, respec...
The good news is: All of the major indices except the Nasdaq composite (OTC) hit all time highs last Thursday. The Negatives The market is overbought. Seasonality for the next 2 weeks is negative. The first chart covers the past 6 months showing the S&P 500 (SPX) in red and a 10% trend (19 day EMA) of NYSE new highs (NY NH) in green. Dashed vertical lines have been drawn on the 1st trading day of each month. The new high for the SPX was unconfirmed by NY NH. Notice how the SPX has gone ballistic in the past week or so. The next chart is similar to the one above except it shows the OTC in blue and OTC NH, in green, has been calculated us...
Fundamental Australian Dollar Forecast: Neutral AUD/USD remains trapped in long downtrend This week will see the RBA make its December interest rate call, followed by official GDP data Neither is very likely to change the backdrop, but both could Things don’t look great for the Australian Dollar, especially against its big US cousin. AUD/USD has been sliding consistently from the year’s highs and that broad downtrend remains very much in play. Relative interest-rate prognoses are doing much of the damage. The US Federal Reserve is expected to raise its own rates again this month and, should it do so, it will be a significant moment ...