InvestMacro

By Money Metals News Service

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

In light of the incredible amount of activity in the precious metals industry and back to back to back record days at Money Metals Exchange as a result of the coronavirus and tumultuous nature in financial markets, we are forgoing a guest interview this week as we work feverishly to fulfill the extraordinary order volume we’ve been dealing with. And there’s certainly a lot to talk about in this week’s market update.

Another week of wild market volatility hit all asset classes, and precious metals were no exception.

Gold continues to be the least volatile metal. And it continues to hold up better than the chaotic stock market during most trading days. But it is experiencing some downside this week.

Gold currently shows a weekly decline of 2.6% to bring spot prices to $1,494 per ounce. Its more volatile counterpart, silver, is down 15.2% this week to trade at $12.70 an ounce.

But that quote of $12.70 for an ounce of silver is only on paper. You can’t obtain physical silver in the bullion market without having to pay a sizeable premium over spot.

Money Metals Exchange and other bullion dealers have experienced an unprecedented surge in demand for silver.

The month of March could set an all-time record for sales of Silver Eagles. That will depend on whether the U.S. Mint is willing and able to supply coins to dealers in volumes that the market demands. So far, it unsurprisingly failing to keep up with demand – resulting in dealer inventory shortages, rising premiums, and abnormally long delivery windows for most orders.

Money Metals’ premiums have certainly risen sharply, but not as much as our competitors. But this is not price gouging. It’s that coin prices are reflecting the fundamentals of the bullion market – which include massive demand, production bottlenecks, and shortages.

A growing number of Americans are facing tremendous financial strain and may have no choice but to liquidate assets and raise cash.

Money Metals is paying unusually large premiums on any silver an even gold items we can buy from customers. If you are willing to sell your precious metals, please know that we will buy them — and pay you handsomely for them.

The advantage of holding physical silver during times like these instead of futures or exchange-traded instruments is clear. During the market mayhem over the past couple weeks, some exchange-traded funds began diverging in price from their own underlying assets in cascades of selling.

One exchange-traded silver product, which trades as PSLV, began trading at a discount of over 10% to net asset value. That means if you owned shares of this vehicle and had to sell, you would be getting significantly less for your shares than they are supposed to be worth.

Part of the explanation for anomalies such as these is that markets become less efficient when they are being driven by panic selling and extreme swings in the value of underlying assets. But a deeper and more troubling potential reason for the large price discrepancies is that investors may have grown increasingly concerned about the layers of credit risk and counterparty risk associated with exchange-traded products.

A rising perceived risk of default or failure could certainly cause the market to attach a discounted value to any financial instrument. That’s certainly been the case for a lot of corporate bonds and shares now that many companies are in a cash crunch.

Precious metals in physical form carry no counterparty risk, cannot default, and will never go to zero – although as we’ve seen that their spot prices can still succumb to waves of selling that grip capital markets.

Silver has gone from incredibly cheap to insanely cheap during this coronavirus crisis. One measure of just how depressed prices have gotten is that on Wednesday the gold:silver ratio closed at a record 125:1. It took 125 ounces of silver to buy a single ounce of gold!

Also, this week, the VIX volatility index for the stock market spiked to an historic high, slightly above the level registered during the peak fear period of the 2008 financial crisis. While there is certainly much more damage yet to be inflicted in the economy and quite possibly much lower stock market levels ahead, it’s also likely that many assets that were unfairly put on the chopping block this week have put in their final lows.

Even as the U.S. economy remains on virtual lockdown, demand for commodities is likely to start picking up from China. The COVID-19 new infection rate there has slowed dramatically and nearly flatlined, if you believe government reports. As, Chinese factories return to production and motorists return to the roads, demand for raw materials will increase.

It may be a many weeks, or even many months, before the United States economy returns to something akin to normal. But when it does, a massive amount of pent up demand will hit the energy sector and commodities more broadly. Consumers and corporations will also be armed with trillions of new coronavirus dollars that are set to be distributed to them by the federal government.

We have never seen a bailout attempt like this before. Certainly not on this large a scale or this wide a scope.

Hard to believe just a few weeks ago, Americans were feeling grateful to not be living under an authoritarian country like China that can arbitrarily decide to quarantine populations and shut down entire cities.

Well, Americans are now effectively living under a command economy. Political decisions will now determine which businesses are allowed to operate and which will ultimately survive. Will we ever get back the freedoms we used to take for granted? Or are we in a long emergency that will never see a return to normalcy?

The ultimate consequences of this economic lockdown and the coming helicopter drops of cash are difficult to predict. This crisis could render government deficits unmanageable, destroy Uncle Sam’s low interest rate borrowing capacity, and force officials to adopt Modern Monetary Theory – essentially bypassing the bond market and having the Federal Reserve print whatever cash the government needs.

As severe as this recent deflation scare has been, the inflationary snapback to come could catch a lot of investors completely unprepared. And as disappointing as silver’s spot price performance has been of late, it has the potential to deliver truly explosive gains when the pressures now building in the physical bullion market blow the lid off the paper market. In the meantime though, please be careful out there.

Well that will do it for this week. Be sure to check back next Friday for our next Weekly Market Wrap Podcast. Until then, this have been Mike Gleason with Money Metals Exchange, thanks for listening and have a great weekend everybody.

The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.

By OilPrice.com

– The Airbnb of energy, the Uber of zero-carbon transportation, the VRBO of blockchain electricity-sharing… a collection of new startups are about to revolutionize the sharing economy – and smart money is starting to pay attention.

The sharing economy has become an unstoppable force–and the collaborative, peer-to-peer economy has grown from a curious fad into the trend-to-beat-all-trends over the past decade.

Popularized by ride-hailing apps like Uber and Lyft; home-rental companies like Airbnb and HomeAway; and crowdfunding apps like Kickstarter and Fundablem, this economy has transformed into one of the fastest-growing business trends in history.

McKinsey now estimates that 162 million people or 20-30% of the workforce in the U.S. and Europe alone are providers on sharing platforms.

The latest startups making huge waves and threatening to disrupt sharing as we know it include a Slovak outfit that is fashioning itself as the Airbnb of clean energy …

A Canadian startup that meets the widespread demand for a green ride-sharing solution by giving consumers a choice of vehicle and by contributing to planting a tree for every ride ..

And an Australian peer-to-peer energy trading platform that is storming the renewable energy halls of Silicon Valley.

All three combine the best of IT with the biggest of trends: sharing and environmentally responsible investing.

Meet the three startups rewriting all the rules:

#1 Fuergy

Slovak startup Fuergy plans to turn household renewable energy-sharing into a reality.

One of the latest is a Slovakian startup that is now fashioning itself as the Airbnb of clean energy, with a mission to turn household renewable energy sharing into a reality.

Using the Fuergy platform, home users who generate surplus solar or wind power can sell it directly to other members in their community instead of the usual model of feeding it to the grid.

This way, the consumer bypasses high processing fees thus allowing them to earn more from their renewables. Meanwhile, the buyers are able to purchase the shared energy at cheaper rates than buying it from the main grid–a classic win-win for both the seller and the buyer.

Obviously, sharing something as unpredictable as solar and wind power can be a really tough call and nothing like sharing an Airbnb. After all, the system should be able to accurately predict power generation and user consumption at any given time of the day so as to only buy what’s necessary or sell what is surplus to requirements.

This is where Fuergy’s artificial intelligence (AI) platform comes into the equation.

Fuergy optimizes energy consumption by using its ability to connect with IoT (Internet of Things) devices, including a diverse range of home appliances including heat pumps and washing machines.

By connecting to the IoT, Fuergy is also able to schedule energy consumption to times when energy is cheaper, or even store it in the form of heat or cold. By using a weather forecasting system and consumer habits analysis, the system is able to, for example, adjust heating settings so that no energy is wasted for heating an empty house at the beginning of a sunny day. Based on these inputs and parameters, the AI system is also able to evaluate the amount of energy it can sell or purchase to ensure a trouble-free operation of the delivery point.

As Branislav Safarik, COO at Fuergy, has told Observer:

“Green energy is highly weather-dependent, and therefore, it is very hard to predict how much energy they will produce throughout the day. So, first of all, we need to get the renewables under control. This can be done with the help of batteries or other kinds of energy storage. We can store the green energy and use it when needed. This must be done at the level of energy supplier.”

The open, distributed and dynamic energy model that Fuergy is building will probably be an easy sell because of one key attraction: significantly lower energy costs.

Fuergy’s pilot project for businesses has already realized 50% lower energy costs.

#2 Facedrive

Canadian Facedrive is like Uber, only better–because it’s green.

Facedrive is the next-generation ride-sharing company that gives the segment’s key customer base exactly what they want: A green alternative in the fossil-fuel driven ride-sharing sector.

Facedrive (TSX:FD.V) is the first ride-sharing company that contributes to planting a tree while you ride, and lets you choose exactly what kind of ecological footprint you want to leave behind.

The next-gen ride-share company offers customers a choice for every ride, whether they want an EV, a hybrid, or a conventional car. And even if they choose conventional, they’re still making a green choice because the CO2 is being offset for them.

While Uber was busy spending tons of capital on making ride-sharing a thing, Facedrive was predicting where things would go next, and laying the green groundwork.

“We’re all about grabbing onto the biggest trends in tech before they’re mega-trends. So that takes us back to 2016, when we first came up with the idea. Whenever a major new trend emerges, it’s the job of the truly innovative to step back and say ‘OK, this is an explosively great idea – so what’s wrong with it?’ When you figure that out, and you’ve got the right network and the right people behind you, you can jump in on one of the biggest trends and disrupt a massive market at exactly the right time,” Facedrive CEO Sayan Navaratnam told Oilprice.com.

Already, Sayan is attracting huge names with Facedrive (TSX:FD.V) because it’s been recognized as the #1 eco-friendly and socially responsible TaaS (Transportation as a Service) platform. In addition to celebrities, including Will Smith and Jada Pinkett Smith, WestBrook Global Inc. is also on board. The company has even partnered with a major telecom firm to offer drivers significant discounts.

Facedrive has already planted 3,500 trees, and its ride count has gone from 200 a day just 4 months ago to 1,000 rides per day right now–and counting.

The next big push comes in Q3-Q4 of this year, when Facedrive targets expansion into U.S. and European markets.

#3 Power Ledger

Power Ledger is based out of Australia and functions as a peer-to-peer energy-trading platform and the first ever carbon credit project of its kind.

Imagine, as a household, being able to monetize your renewable energy investment while simultaneously providing your community with cheaper energy via the blockchain–all thanks to an innovative peer-to-peer platform.

The bigger this gets, the more likely it will be to disrupt the energy sector by helping to make renewable energy more affordable and attractive.

It’s been making waves around the world, and now it will be hitting up California in partnership with Silicon Valley Power and the Clean Energy Block Chain Network.

That partnership will create a digital record of Low Carbon Fuel Standard (LCFS) transactions. For anyone not familiar with carbon credits–it’s a complicated and cumbersome process that was just waiting for someone to come along with a better way of tracking renewable energy use and offsets–and hopefully, a better algorithm, which is exactly what Power Ledger offers.

Power Ledger tracks energy production, storage and use with full-on transparency, and Silicon Valley is by no means its first carbon credit rodeo.

They’ve also been busy in Japan, in partnership with the Kansai Electric Power Co. (KEPCO) for a renewable energy sharing project, and back in Australia, they’ve been working on micro-grid projects, hitting up Southeast Asia and New Zealand in between. They also just won a contract with an Italian energy giant that sets the stage for what’s to come next …

So whether it’s Uber–only better, or energy we can buy, sell and lease like an Airbnb, or a novel AI-inspired way to make carbon credits actually makes sense … These startups have one thing in common: They watched all the sharing giants on their foundation-laying spending sprees, and then they focused on what was missing. What comes next? These are the innovations driving the disruption.

Other tech companies poised to ride the ride-share boom:

Google’s parent company Alphabet (NASDAQ:GOOGL) is a shining star in the tech world. Despite being one of the largest companies on the planet, in many ways it has lived up to its original “Don’t Be Evil” slogan.

Though it has had its controversies in the realm of data collection and advertising, Google has led a revolution in the tech world on multiple fronts.

First, and foremost, it has officially powered its data centers with 100% renewable energy over the last two years. A massive feat considering exactly how much data Google actually processes.

Not only is Google powering its data centers with renewable energy, it is also on the cutting edge of innovation in the industry, investing in new technology and green solutions to build a more sustainable tomorrow.

Plus, Uber’s losses are linked to its IPO and its rapid expansion rate: once the company solidifies its dominance of ride-sharing and makes inroads to self-driving cars, Uber’s profits are likely to prove sturdy.

Moreover, while $5 billion sounds like a lot, it pales in comparison with what other big companies have suffered through-GM posted $48 billion loss in 2009, and it’s held on despite it.

Apple (NASDAQ:AAPL) has always thought outside of the box. And when it brought back Steve Jobs in 1997, the company really took off.

Jobs also paved the way to a greener future for the company.

From the products themselves, to the packages they came in, and even the data centers powering them, Steve Jobs went above and beyond to cut the environmental impact of his company.

After his passing, Tim Cook took these principles to heart, and picked up the torch, transforming all of Apple’s operations into models of a sustainable future.

Now, all of Apple’s operations run on 100% renewable energy.

General Motors (NYSE:GM) has created its own brand of electric bikes, called Ariv. The bikes were just launched this year, but have already captured the attention of the European market.

While they err on the side of pricey, coming in at $3,800 per unit, they do boast a high top speed and can travel a modest distance on a single charge.

The kicker for many, however, is that they can fold into an easily carriable pack, making them the perfect choice for a lot of commuters. Especially in big cities like London or Berlin.

Ford (NYSE:F) is taking a different approach. It’s swooped right into the scooter market, buying Spin for a clean $100 million.

Initially deployed in San Francisco back in 2017, Spin is widely considered to be a part of the Big Three of the scooter world, along with Lime and Bird.

While Ford’s buyout of Spin made headlines, it’s certainly not the first urban transportation alternative Ford’s sunk its teeth into.

In recent years, Ford also bought commuter shuttle service Chariot, Autonomic and TransLoc, aiming to ensure that it does not miss the boat as this new movement accelerates.

NextEra (NYSE:NEE) is the world’s leading producer of wind and solar energy, so it’s no surprise that it has received some love from the ‘millennial dollar.’

In 2018, the company was the number one capital investor in green energy infrastructure, and fifth largest capital investor across all sectors. No other company has been more active in reducing carbon emissions.

And they’re just getting started.

BCE Inc. (TSX:BCE) is a Canadian giant. Founded in 1980, the company, formally The Bell Telephone Company of Canada is composed of three primary subsidiaries. Bell Wireless, Bell Wireline and Bell Media, however throughout its push into the position of one of Canada’s top telco groups, it has bought and sold a number of different firms.

BCE is also at the forefront of the Internet of Things movement in Canada, something that is going to be vital in building a greener future. Its Machine to Machine solutions are being used by numerous businesses throughout North America and its new LTE-M network is sure to rapidly increase the adoption of these solutions.

The Descartes Systems Group Inc. (TSX:DSG) (commonly referred to as Descartes) is a Canadian multinational technology company specializing in logistics software, supply chain management software, and cloud-based services for logistics businesses. The company is making waves in the tech industry with its futuristic products and visionary leadership.

Recently, Descartes announced that it has successfully deployed its advanced capacity matching solution, Descartes MacroPoint Capacity Matching. The solution provides greater visibility and transparency within their network of carriers and brokers. This move could solidify the company as a key player in transportation logistics which is essential in the world of commerce.

Power Financial Corp (TSX:PWF) has been in the finance industry since 1984. The company operates in three segments: Lifeco, IGM and Pargesa Holding SA (Pargesa). And, with its holdings in a diversified portfolio spanning the United States and Europe, Power Financial is a leader in its field.

Focusing its investments in emerging industries, Power Financial stands to benefit by riding this wave into the future. The company’s forward-thinking attitude and liberal approach to technology is sure to leave investors satisfied.

Redline Communications Group Inc. (TSX:RDL): Redline is not a giant, but it does operate in more of a niche environment—in hard-to-access places, providing wireless for critical industries, including oil and gas, and anywhere from the rainforests of South America to the slopes of Alaska and the deserts of the Middle East.

While the company has struggled in the past, we expect it to improve its operations results. The company’s main challenge remains to expand and attract new customers for its new products.

Shaw Communications Inc (TSE:SJR.B): Shaw Communications, a giant in the Canadian telecoms sector, saw a drop in its share price following its disappointing forecasted earnings growth in 2017. In a sector that is set to see growth, undervalued and experienced companies such as this can make for a great hold play.

Shaw owns a ton of infrastructure throughout Canada and its cloud services and open-source projects look to address some of the biggest issues that its customers might face before the customers even face them.

With a market cap of $13.73 billion, Shaw Communications is going to be a big player in the sector for quite some time to come, and as it nears its 52-week low this could be a great time to pick up a telecoms giant.

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that the demand for environmentally conscientious ride sharing services companies in particular will grow; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plan. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities; the ability of the company to attract a sufficient number of drivers to meet the demands of customer riders; the ability of the company to attract drivers who have electric vehicles and hybrid cars; the ability of the company to keep operating costs and customer charges competitive with other ride-hailing companies; and the company’s ability to continue agreements on affordable terms with existing or new tree planting enterprises. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

DISCLAIMERS

ADVERTISEMENT. This communication is not a recommendation to buy or sell securities. An affiliated company of Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) has signed an agreement to be paid in shares to provide services to expand ridership and attract drivers in certain jurisdictions outside Canada and the United States. In addition, the owner of Oilprice.com has acquired additional shares of FaceDrive (TSX:FD.V) for personal investment. This compensation and share acquisition resulting in the beneficial owner of the Company having a major share position in FD.V is a major conflict with our ability to be unbiased, more specifically:

This communication is for entertainment purposes only. Never invest purely based on our communication. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the featured company. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.

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Link to original article: https://oilprice.com/Energy/Energy-General/The-Most-Exciting-Green-Startups-To-Watch-In-2020.html

By Meredith Taylor

By Orbex

As we mentioned in our last article, we are in the midst of a credit crunch.

Central banks are engaged in unprecedented actions in an effort to stave off a financial crisis which could lead the world into a recession.

We already talked about how to trade in a recession, but what about just ahead of the recession?

After all, we don’t know if the current situation will evolve into a major recession, or there will be a quick contraction and a relatively fast rebound.

Extrapolating from Chinese data, some have argued that from the peak of cases (that is, when the spread of the coronavirus gets under control) there are about three to four weeks until the economy starts reactivating.

That has led some analysts to optimistically hope that maybe we’ll be back to “normal” before the end of the semester.

Why is All the Money Gone?

What’s happening right now is somewhat unique, in the sense that there isn’t anything inherently wrong with the financial markets.

The risk to the economy is an external factor: the policies of the government to control the COVID-19 outbreak. This means we are a lot closer to a 2001 scenario (post 9-11) than a 2008 scenario.

In any case, one of the traits of a credit crunch is that everyone needs cash. Right now most major businesses are drawing down on their pre-authorized loans from major banks. This is so that they have cash on hand during the period they are forced to shut down.

Essentially, it is to replace their normal cash flow and to continue to pay suppliers and employees.

The Failure of Safe Havens

The extraordinary demand for liquidity is putting a huge strain on the financial industry, which generally functions by balancing relatively stable inflows and outflows.

This is where central banks come in to supply them with the liquidity customers are demanding. If the economic shutdown is short-lived, then the companies will restart operations and pay back the money they’ve borrowed.

That’s the best case scenario and offers the best opportunities for traders.

But, we also have to be mindful of the risks, where the credit crunch turns into a crisis; then into a recession. After all, traders make money by balancing the risk-reward ratio in their favor.

Volatility

No one knows for certain where this is going to end. So, the markets get very jumpy. There can be massive swings even in forex – with GBPUSD dropping 5% in one day! That’s 500 pips!

Since the idea is to conserve liquidity to buy in on the bottom, when trading a credit crunch, you want to be especially mindful of your margins and risks.

Yes, broader swings mean you can make more. But, you also want to be able to maximize your ability to seize an opportunity. Smaller, shorter trades help take advantage of market moves and generate some profit while keeping you from being locked in trades that might prevent you from taking a better position.

Going into a Potential Recession, Cash (Liquidity) is King

Credit crunches are often where more conservative traders excel. There is a lot of risk in the market. And more risky traders are being forced to liquidate because they are overextended.

A composed trader with extra capital in their account can find some really good deals if they look carefully.

By Orbex

By CentralBankNews.info

Six major central banks have for the second time this week taken steps to ensure that U.S. dollars are readily available worldwide by increasing the frequency of their funding operations to daily from weekly.

The U.S. Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank said in a joint statement they were “announcing further coordinated action to further enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.”

Starting on Monday, March 23, the six central banks will increase the frequency of 7-day maturity operations to daily from weekly, continuing at least through April. Weekly 84-day maturity operations will also be held, they added.

On March 15 the same six central banks lowered the price of their standing U.S. dollar liquidity swap arrangements by 25 basis points and began offering U.S. dollars weekly with a 84-day maturity, in addition to the 1-week maturity operations they were offering.

On March 19 the Fed then established temporary swap lines with the central banks of Australia, Brazil, Denmark, South Korea, Mexico, Norway, New Zealand, Singapore and Sweden.

The six central banks released the following statement:

“The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to further enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.

By IFCMarkets

Rising Canadian retail sales bearish for USDCAD

Canadian core retail sales declined 0.1% over month in January after 0.5% growth in December, when a 0.2% growth was expected. This is bullish for USDCAD.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By CentralBankNews.info

Russia’s central bank left its key interest rate steady at 6.0 percent despite a plunge in the ruble’s exchange rate, saying any rise in inflation will be temporary as slower global and domestic growth will limit price hikes and inflation will return to its target in 2021.

The Bank of Russia, which has cut rates six times since May 2019 by a total of 175 basis points, added the spread of the coronavirus – which had led to restrictions in international trade and travel, and a rapid deterioration of commodity and financial markets – may lead to a downturn in already-moderate economic activity in coming quarters.

And while the growth path will depend on the scale of the fallout from the spread of the virus, Covid-19, and the actions taken to counter it, the central bank said the economy will be supported by measures taken by itself and the government.

So far Russia has reported relatively few infections and only one death from the coronavirus, but on the government on Monday announced a $4 billion package of measures to help businesses that are facing lower demand, and has banned foreigners from entering the country, shut its land borders with neighboring countries, closed schools, and restricted outdoor and indoor gatherings.

In addition, domestic demand is to receive a boost from additional social policy measures announced in January along with national projects that are being implemented.

Russia’s ruble plunged 26 percent from Jan. 12 to March 18, hit by the collapse in oil prices from the dispute with Saudi Arabia and the flight to the safe-haven U.S. dollar amid the fallout from the spread of the coronavirus worldwide.

In recent days the ruble has bounced back slightly though it fell in response today to trade at 79.6 to the U.S. dollar, down 23 percent since Jan. 12 and 22 percent this year.

Russia’s inflation rate eased to 2.3 percent in February from 2.4 percent in January but the central bank said it may temporarily exceed its 4.0 percent target due to the weaker ruble.

This rise in consumer prices may also trigger a temporary rise in inflation expectations but slowing domestic and external demand will be a “significant disinflationary factor,” and inflation should return to 4 percent in 2021.

Russia’s economy has been slowly recovering since a deep recession in 2015 and 2016 and in February the central bank forecast growth this year of 1.5 to 2.5 percent, up from 1.3 percent in 2019,  helped by infrastructure projects.

The Bank of Russia issued the following press release:

By IFCMarkets

Weak UK data bearish for GB100

British economic data didn’t improve following Bank of England decision to cut rates half a percentage points to 0.25% at its March 11 meeting. Manufacturing production decline deepened to 3.6% over year in January from 2.5% in the previous month. Balance of trade surplus declined to 4.2 billion Pounds from 6.3 billion. And labor market report showed unemployment ticked up in January to 3.9% from 3.8%. To combat coronavirus impact on economy UK government announced £330 billion financial aid program ($398 billion) of government-backed loans and guarantees. Deteriorating economic data are bearish for GB100.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By Orbex

The financial meltdown has spared no indices. The UK100 plummeted to levels last seen in 2011, just shy of the critical level at the 4500 handle.

It’s a confluence of some major tops and bottoms seen during the 2008 market crash. These were broken to the upper side causing one of the best bullish rallies lasting 12 years.

The weekly chart above speaks of volume. However, it hints at a major support structure.

We just had a full retest of the multiyear descending wedge prompting a quick bounce, which is looking healthy. But, it needs to test the 5750/800 region and attain a daily close above to fortify the view of a bottom being in place. This should allow rallies to commence.

While we hold on to the lows of the week, price action shows a high potential of a reversal. We can then start to look for prices to register 5800, followed by 6500, to begin with.

The 2-hour chart below represents a current descending trendline break structure to the higher side. Overall, the chart layout still projects a potential bear flag and it still carries a risk for a further drop back to the weekly lows as long as it remains trading within the ascending channel.

It is very likely to see a test to the upper band of this potential bear flag channel, near the 5640 level.

In case of a break higher we can expect rallies to test 5750. A full retrace would call for further gains towards the 6500 level.

By Orbex

By TheTechnicalTraders – Exactly one month ago, on February 20th, the SP500 made an all-time high and reversed its trend to the downside. What a wild ride the last month has been across virtually all asset classes.

Out of all the major indexes, commodities, and currencies, only one asset and trade moved higher. It’s no surprise given the title that cash or the US Dollar is the asset of choice having rallied over 9% while everything else fell with bonds down 22.75%, stocks 30%-40%, gold miners 58%, and crude down 62%.

My team and I have talked about this rotation to safety into USA/US Dollar) since the lows back in 2018. During the recent stock and commodity price crash, we have seen where investors are dumping their money. It’s not gold, it’s not bonds, but the US Currency. Stocks and commodities are being sold around the globe, and that money is buying up the US dollar.

US Dollar Rises Above the Rest
Proof the Greenback is Still the #1 Currency World Wide

Daily S&P 500 Index – Support, Bottoming signal, and Resistance

The 30+% correction in the ST&P 500 index has been an extraordinary event. Those who have proven trading strategies and abide strictly to position, and risk management rules have been able to not only avoid the market crash but profit and reach new account highs. While those who trade for the thrill, expect oversized gains regularly, and who don’t have a clear trading plan or position management are suffering from the recent selloff.

Last night I watched a great video talking about performance and the winning mindset that both traders and top athletes share. The different ways someone can trade profitably in the markets is fascinating. If you want to be inspired to be a better person and trader, take a look at this video by Real Vision with Dr. Gio Valiante.

Ok, so let us jump into the charts. As a technical analysis and trader since 1997, I have been through a couple of bull/bear market cycles. I have a good pulse on the market and timing key turning points for short-term swing traders and long-term investors.

As you will see from the chart below, I keep things easy for you to see visually and get the idea of what to expect moving forward. The green line is a very significant long term support level on the S&P 500 index. Knowing that price has fallen straight down to this level gives us a much higher chance of a bounce at a minimum.

Trade Tip: The faster the price moves to a critical support or resistance level, the higher the chance you will have a bounce back from that level for a candlestick or three.

The pink arrow on the chart points towards a candlestick pattern, which I call Tweezers. These should be seen as a possible reversal signal.

Lastly, is the red resistance zone. I know it’s a huge range, but at this point, it’s the area we will zero in on once/if price starts to near that level.

30 Minute S&P 500 Trading Chart

This chart is the 30-minute chart of the index and only shows regular trading hours between 9:30 am ET and 4 pm ET. While this is only 1/3rd of the trading day for futures, it is when the majority of contracts/shares are traded, so that is my main focus for analysis.

Since 2001 I have been building and refining my trading strategies to make them somewhat automated. This chart below shows my trend colored chart, which is the basis of my trading for almost all asset classes. What the S&P 500 does directly relates to how I trade or avoid other asset classes.

Recently, we created a market gauge showing you visually where the market is within its 30-50 day price cycle.

When the trend changed, and the bars turned orange on Feb 25th subscribers, and I closed our equities position because they were now out of favor. This allowed us to avoid the market crash through trend analysis, and from our trailing stop order.

First Wave of Safety Was in Bonds

The two charts below of bonds show the same trend and trades but share some different trading tips.

The first 30-minute chart shows a pink line, which was our trend trade. The strategy is to look for large patterns, wait for a trend change, and then take advantage of the new trend. This trade we entered mid-January.

The key points from this chart are to know when the price goes parabolic in any direction and with huge price gaps, know its time to start scaling out of a trade, or close it.

Bonds Daily Chart – Spot Large Pattern, Trade The Breakout

The second point is that you must have a trading plan and actively manage your trade by moving up protective stop orders, so when price corrects, you are taken out of the trade automatically.

This daily chart of bonds shows the large bullish chart pattern (bull flag). I waited for price to breakout, the trend to turn green, and then entered the trade using Fibonacci extensions for price targets, which I have found are the absolute best way to spot our price targets. If bonds were to rally to the 100% measured move, we would close the trade, and that is what happened exactly.

A few things took place at that price level, which has the charts screaming at me to sell. First, the 100% target was reached. The second was that price was going parabolic with a 10% gap higher above my target, and volume was extremely high, meaning everyone, including their grandmother, were buying bonds. If everyone is buying the same thing, its time to move on to a new chart.

Gold and Gold Miners as a Safe Haven

While subscribers of my ETF trading signals and I profited on GDXJ as an early safe-haven trade exiting our position at the high tick of the day before it reversed and fell 58%, most traders I know still hold their gold miner’s positions.

For most of us, it is tough to sell a winning trade, and it is even harder to sell a losing trade. And knowing most trades will turn into a losing trade if you hold them long enough, the odds are clearly stacked against you as a trader.

This pullback in metals and miners, which turned into something much larger than I ever expected, is a huge shock to most people. The reality is history shows during extreme volatility/fear both gold and bonds collapse, and it is nothing new or unexpected.

In fact, I posted a warning that both will fall two days before they topped and collapsed in this special report.

Concluding Thoughts:

In short, we are experiencing some unprecedented price swings in the financial system, but other than extra-large market selloffs, and rallies the charts are still moving and telling us the same things for trading and investing.

There are times when the markets are untradable as a swing trader, which is has been the last 15 days because of how them market has been moving. It is a fantastic time for day traders, but with some sectors moving 10-25% a day back to back like the gold miners or crude oil, it is high-risk trading (gambling) right now.

With all that said, my inter-market analysis is pointing to some tradable price action potentially starting next week. The potential is larger than normal because price volatility remains elevated, meaning 10-20% moves over a week or two are expected.

Visit my ETF Wealth Building Newsletter and if you like what I offer, and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen

TheTechnicalTraders.com

By George Prior

The price of Bitcoin is likely to recover to at least $7,000 in the next week, with the wider cryptocurrency market receiving a major resurgence.

This is the bullish forecast from Nigel Green, the chief executive of deVere Group, one of the world’s largest independent financial advisory and services organizations.

It comes as the price of Bitcoin, the largest digital currency with a current market capitalisation of around $130bn, shot up by more than 20 per cent in 24 hours on Thursday.

Mr Green, who launched the deVere Crypto app in 2018, says: “Global financial markets – such as stocks, oil, currency, bonds and gold – experienced a massive sell-off this week. Investors who needed cash went into panic-mode about the coronavirus pandemic and whether governments’ and central banks’ policies are enough to mitigate the economic impact.

“Bitcoin was no different from any of these other assets – including the safe havens – it was just another asset to sell at the time.

“However, it has recovered significantly better than many other assets, jumping 20 per cent in 24 hours.”

He continues: “I’m confident that this upward trajectory will remain strong.  The price of Bitcoin is likely to recover to at least $7,000 in the next week as the volatility in traditional financial markets, including fiat currency markets, looks likely to remain in the near-term.

“As such, a growing number of institutional and retail investors will seek to diversify their portfolios and hedge against the turmoil by investing in decentralised, non-sovereign, secure crypto assets, such as Bitcoin.

“In other recent times of market uncertainty, a growing consensus has been revealed that Bitcoin is becoming a flight-to-safety asset.

“Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin  – which shares its key characteristics of being a store of value and scarcity – could potentially dethrone gold in the future as the world becomes increasingly digitalised.”

Mr Green adds: “Moreover, the upswing in Bitcoin’s price will remain on track because the fundamentals remain intact – namely that cryptocurrency is the future of money.

“Cryptocurrencies like Bitcoin are digital and global. Digitalization is often called the fourth industrial revolution and cryptocurrencies are digital by their very nature. Meanwhile, the borderless nature of cryptocurrencies makes them perfectly suited to an ever globalized world of commerce and trade.

“It is also about demographics.  Younger people, who are of course the future, have always lived in a digital era, so using digital currency is going to be second nature.

“In addition, there will be an acceleration of institutional investment which is likely to be driven by greater regulatory clarity. More and more global jurisdictions can be expected to join the likes of Malta, Hong Kong, Japan and Switzerland in becoming crypto-friendly from a regulatory and pro-business viewpoint. The institutional expertise and capital will bolster prices significantly.”

The deVere CEO concludes: “Volatility in traditional markets, combined with a growing consensus of it being a flight-to-safety asset, plus its strong inherent fundamentals will ensure Bitcoin’s continued upward trajectory.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.