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  • Finance 0

    Euro Expected To Rise To 1.0895 Before The Fed Meeting

    Yesterday’s Trading: My euro expectations were fulfilled on Tuesday. The euro updated its maximum against the USD during European trades, dropping to 1.0818 and then returning to 1.0868. The only thing that didn’t fit with my forecast was what happened at the end: the close price was higher than I thought it would be. The maximum was updated after a fall in European stock indices which followed the Chinese ones. The Shanghai composite fell by 6.72% to 2,749.79 due to a continuation of capital flight from China. This capital flight reached $1 trillion last year due to the devaluation of the yuan, a slowing of Chinese economic growth and a ...
    On January 27, 2016 / By
  • Finance 0

    EUR/USD Forex Signal For January 27, 2016

    EUR/USD Signal Update Yesterday’s signals were not triggered and expired. Today’s EUR/USD Signals Risk 0.75% Trades may only be entered between 8am and 5pm London time today. Long Trade 1 * Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0772. * Place the stop loss 1 pip below the local swing low. * Move the stop loss to break even once the trade is 20 pips in profit. * Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride. Long Trade 2 * Go long following a bullish price action reversal on the H1 time fra...
    On January 27, 2016 / By
  • Finance 0

    Why You Should Consider Trading BHP Billiton

    An Australian-based company operating in Brazil has come under fire by the attorney general of Brazil after a dam burst at a BHP Billiton iron ore facility. However, BHP Billiton Ltd  (BHP) unequivocally maintained that it was not a guarantor to the Australian company, Samarco. Nonetheless, BHP Billiton offered assurances that it will do what is required in tandem with Vale SA during the recovery efforts estimated by the Brazilian government at $4.9 billion. These fresh concerns have hit home hard, especially in light of the recent plunge in the price of nickel and iron ore – the chief products of BHP Billiton. If you trade the news, BHP...
    On January 27, 2016 / By
  • Finance 0

    AUD/USD Looks Good After Stable Inflation Data

    Australia’s quarterly inflation report could have triggered rate cut expectations, but the figures were sound enough to stave off such speculation. Headline inflation inflation came out at 0.4% q/q against 0.3% expected. Also year over year, we had a beat at 1.7%, more than 1.6% predicted. Also core inflation, known in Australia as trimmed mean CPI beat with 0.6% against 0.5% q/q and y/y it stands on a healthy 2.1%, which is like in the US and within the RBA’s target. Glenn Stevens and his colleagues at the central bank convene next week after a summer break in January and a cut seems to well off the cards. Internal data looks much bette...
    On January 27, 2016 / By
  • Finance 0

    EU Session – Bullet Report – Don’t Catch A Falling Knife

    EUR/USD Intraday: the upside prevails. Pivot: 1.082 Most likely scenario: long positions above 1.082 with targets @ 1.0895 & 1.092 in extension. Alternative scenario: below 1.082 look for further downside with 1.08 & 1.0785 as targets. Comment: the RSI is well directed.  Gold spot Intraday: further upside. Pivot: 1114 Most likely scenario: long positions above 1114 with targets @ 1124.75 & 1128 in extension. Alternative scenario: below 1114 look for further downside with 1109.5 & 1104.5 as targets. Comment: the RSI is mixed to bullish.  Crude Oil (WTI) (H6) Intraday: supported by a rising trend line. Pivot: 29.95 Most likely...
    On January 27, 2016 / By
  • Finance 0

    European, Asian Markets Buoyed By Oil Rebound

    Most European markets are expected to open higher Monday as investor sentiment was uplifted by a rebound in oil prices and a rally in Asian stocks overnight. The higher open comes amid a bounce in oil prices after traders scrambled to close out short positions. A massive storm on the U.S. East Coast increased demand for oil for heating and proved supportive for prices of the commodity. In addition, European stocks also got support from comments made by European Central Bank President Mario Draghi last week in which he said the governing council would be using other monetary policy tools it has at its disposal. London’s FTSE 100 should s...
    On January 27, 2016 / By
  • Finance 0

    T2108 Update – Rally Or Regress: A Fed-Inspired Binary Trade

    T2108 Status: 15.8%T2107 Status: 15.7%VIX Status: 22.5General (Short-term) Trading Call: bullishActive T2108 periods: Day #13 under 20%, Day #16 under 30%, Day #32 under 40%, Day #36 below 50%, Day #51 under 60%, Day #392 under 70% Commentary Will the U.S. Federal Reserve deploy its typical forces of anti-volatility? Or will the Fed put on some blinders to the ugliness in financial markets and charge forward with talk of rate hikes and policy normalization? In the first case, the Fed acknowledges and defers to the market’s on-going push-out for the next rate hike. The odds are now borderline for a July rate hike at 51.5%. I added September ...
    On January 27, 2016 / By
  • Finance 0

    Financial Engineering Chart Of The Day: Fed Balance Sheet Vs. S&P 500

    Fed Balance Sheet vs. S&P 500 I was playing around with some ideas on the St Louis Fed “Fred” database and came up with this....
    On January 27, 2016 / By
  • Finance 0

    US, China Stocks Tumble After Industrial Profits Plunge

    Dow futures are down 100 points and Chinese stocks are pressing new 14-month lows, extending last night’s carnage after Chinese Industrial Profits tumbled. With a dismal 4.7% drop year-over-year, led by a near 60% collapse in the mining industry, early strength (after some jawboning from Abe) gave way to fresh lows and US equity futures are also responding. Offshore Yuan refuses to drop since Xinhua wrote a 3rd hit piece against George Soros and his “speculative snap profits.” This year is just getting uglier… Offshore Yuan has been interfered with twice now in the last 24 hours as Xinhua unleahes its 3rd hit piece ...
    On January 27, 2016 / By
  • Finance 0

    The Populist Revolution: Bernie And Beyond

    The world is undergoing a populist revival. From the revolt against austerity led by the Syriza Party in Greece and the Podemos Party in Spain, to Jeremy Corbyn’s surprise victory as Labour leader in the UK, to Donald Trump’s ascendancy in the Republican polls, to Bernie Sanders’ surprisingly strong challenge to Hillary Clinton – contenders with their fingers on the popular pulse are surging ahead of their establishment rivals. Today’s populist revolt mimics an earlier one that reached its peak in the US in the 1890s. Then it was all about challenging Wall Street, reclaiming the government’s power to create money, curing rampant d...
    On January 27, 2016 / By