Trump escalates trade war into high gear, DAX30 CFD bears in control

By Admiral Markets

Source: Economic Events August 26, 2019 – Admiral Markets’ Forex Calendar

After the complete escalation in the trade war between the US and China last Friday, the outlook for the DAX30 CFD is clearly bearish.

The initial news that China would retaliate to the latest tariff announcement from US president Trump by slapping 10% tariffs on 75 Billion USD in US imports was responded to by a solid appearance from Jay Powell, as his speech at Jackson Hole stabilised markets and let them recover some losses.

Shortly after, “hell broke loose” when US president Trump asked whether Fed chairman Powell or Chinese prime minister Xi is the bigger enemy of the US, and warned that he plans to retaliate towards China (which he ended up doing after markets closed by announcing new tariffs) and ordering US companies to find an “alternative” to China.

As a result, the DAX30 CFD saw a sharp drop, and attacked the region around 11,550 points going into the weekly close, and should clearly be considered bearish into the start of the week.

A break lower activates 11,250 points as a first target and below 10,800 points.

The technical picture could only brighten with the DAX30 CFD making it back above 11,830/850 points, but this bullish outlook clearly seems to be off the table for the moment:

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between August 5, 2019, to August 23, 2019). Accessed: August 22, 2019, at 10:00 PM GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between May 16, 2018, to August 22, 2019). Accessed: August 22, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it increased by 9.56%, in 2016, it increased by 6.87%, in 2017, it increased by 12.51%, in 2018, it fell by 18.26%, meaning that after five years, it was up by 10.5%.

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By Admiral Markets

EURUSD: safe haven assets open up in the Asian session

By Alpari.com

Previous:

Last week, trading was mixed on the majors against the US dollar. Losing out were the Kiwi dollar (-0.48%), the Aussie dollar (-0.38%), and the Canadian dollar (-0.15%). The biggest gain was made by the pound (+1.16%), followed by the yen (+0.94%), the euro (+0.49%), and the Swiss franc (+0.35%).

On Friday the 23rd of August, trading on the EURUSD pair closed 0.53% up. The price fluctuations on Friday were normal seeing as trading on the pair stayed below the U2 line.

There was a surge in volatility during the US session when Jerome Powell was speaking at the Jackson Hole symposium. It’s unclear, however, whether the dollar slid in response to his comments, or whether it was because of China. It was more likely a reaction to China’s decision to increase tariffs on up to 75bn USD of US imports (from 5% to 10%). The tariffs will come into effect on the 1st of September and will last until the 15th of December.

Meanwhile, at Jackson Hole, Powell said that the Fed’s measures are aimed at stimulating economic growth, which is currently at serious risk. He also noted that economic indicators are close to the regulator’s target levels. Trump once again accused the Federal Reserve of inaction, and labelled the regulator an enemy of the US economy.

Day’s news (GMT+3):

  • 11:00 Germany: IFO – current assessment (Aug), IFO – expectations (Aug).
  • 15:30 US: durable goods orders (Jul), Chicago Fed national activity index (Jul).

Current situation:

On Monday the 26th of August, trading on the safe haven assets opened up. The yuan has hit a new low against the US dollar. On Saturday the 24th of August, Trump announced a 5% increase in tariffs on Chinese goods set to come into effect on the 1st of October.

At the time of writing, the euro is trading at 1.1133. The trade conflict between the US and China is at fever pitch, so the currencies of developing countries are under pressure. The euro has jumped slightly since trading opened as markets digest the weekend’s news and the correction takes place on the safe havens. If the pair holds up above 1.1120, and with a closing price of around 1.1160, we can expect the pair to continue upwards to around 1.1210.

By Alpari.com

Asian markets spurn riskier assets, as investors weather sudden escalation in US-China trade conflict

By Han Tan, Market Analyst, ForexTime

Asian stocks and currencies are painting a sea of red, while safe haven assets have surged. Gold is now trading above $1540, the Japanese Yen is pushing closer to the 105.0 level against the US Dollar, while yields on the 10-year US Treasuries have dropped below 1.5 percent.

The “flee to safety” mantra is glaringly obvious in the market’s reaction to the sudden escalation in the US-China trade conflict over the weekend. US President Donald Trump has threatened even higher tariffs on Chinese goods between September and December, after China expressed intentions to impose extra tariffs on $75 billion worth of US goods during the same period.

Escalating US-China tensions raises prospects of global recession, prompting more central bank intervention

Amid the selloff, market participants must be wondering where does the trade war end? Has the US-China conflict gone beyond the point of no return? As long as these key questions go unanswered, the greater uncertainties will only mean that risk aversion and heightened volatility become the new normal in the markets.

These tit-for-tat tariffs between the world’s two largest economies will only raise the likelihood of a global recession. Central bankers will have to be more open to easing monetary policy in order to stave off such prospects, with policymakers also expected to step in to stem the volatility in the markets.

Yuan to set tone for Asian currencies

Asian currencies are set to take their cues from the Yuan’s performance amidst these turbulent times. The Yuan has weakened to a new 11-year low, despite the People’s Bank of China setting the USDCNY daily reference rate at a fairly stable level of 7.057, indicating that Yuan stability remains a key objective.

Still, the PBOC is having to navigate a fine line between tolerating more Yuan weakness in order to offset economic headwinds, while ensuring it doesn’t cede too much ground to Yuan bears so as to trigger capital outflows. Overall, a resilient Yuan should shore up support for the currencies of regional economies that are highly dependent on China.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Panic returns as US-China trade war intensifies

By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

  • Trade war escalates between China and the US
  • Gold jumps to a new 6-year high
  • Capital spending and share buybacks are slowing in the US

Last Friday was supposed to be all about monetary policy when leaders of major central banks gathered for the Fed’s annual policy symposium in Jackson Hole. Instead, the spotlight shifted to the US-China trade war as both hit each other with new tariffs.

China’s Ministry of Finance announced early on Friday that it will be imposing new tariffs of between 5% to 10% on $75 billion worth of exports from the US. This latest move from China was a retaliatory response to the 10% tariff on $300 billion worth of Chinese goods which was announced earlier this month. The Ministry also announced that a 25% tariff on US automobiles will be reinstated on December 15.

The response came fast from President Trump who tweeted after the market closed that tariffs on $250 billion of Chinese goods will increase to 30% from 25%, while the remaining $300 billion will be taxed at 15% instead of 10%.

The reaction from the financial markets was a steep selloff in equities with S&P 500 shedding 2.6% as investors flew to the safety of Treasury Bonds. The VIX index which often reflects fear in the market soared 20% to trade above 20. Gold also benefited from the escalated tensions hitting a new 6-year high and seems to be heading towards $1,600. Futures are pointing towards a lower open for US stocks today with Asian markets trading deeply in red.

Despite President Trump’s tweets reflecting positive discussions between the two countries, actions show the opposite. It now seems to many market participants that negotiations may get out of control, and likely lead to steeper selloff in risk assets. We’ve already seen the damage this trade war has done to the global economy. Manufacturing PMIs across the world are moving deeper into contractionary territory, including the US which fell below 50 for the first time since September 2009. Europe’s largest economy, Germany, has already contracted in the second quarter of this year, and will most likely fall into a technical recession. UK’s Brexit, Hong Kong’s protests, Italy’s political mess, and geopolitical tensions in the Middle East – while all being political – will probably lead to significant economic burden. Many economists may argue that the recent inversion in the US yield curve is no longer a good indication of an upcoming recession, however, hard data going forward may begin signaling one.

After growing in double digits in 2018, capital spending targets for US corporates are expected to shrink to 3% according to S&P global. US equities which have been heavily reliant on corporate stocks buybacks may not find the same support as in the previous years. Fear of slowdown is leading many CFO’s to rethink their plans of share buybacks. This has already been evident in Q2 as share buybacks fell 12.6% compared to the same period last year.

While monetary policies across the globe are likely to ease further, on their own, it may not be enough to support risk taking. RBA’s Governor Philip Lowe said at Jackson Hole’s closing note that central bankers have limited ability to cushion the global economy from the headwinds of political uncertainty. Unless we see true signs of resolution in trade, expect a further drop in US and global equities.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

US stocks plunge after Trump orders US manufacturers to leave China

By IFCMarkets

Dollar weakened after Powell’s Jackson Hall speech

US stock indexes plummeted on Friday as President Trump announced an additional duty on some $550 billion of Chinese goods after Beijing unveiled new 5% to 10% tariffs on another $75 billion worth of US goods, including autos. The S&P 500 tumbled 2.6% to 2847.11, falling 1.4% for the week. Dow Jones industrial lost 2.4% to 25628.90. The Nasdaq dropped 3% to 7751.77. The dollar weakening accelerated after Federal Reserve Chairman Powell said at annual central banking symposium in Jackson Hole, Wyoming the Fed will do “ what monetary policy can do to sustain the expansion”. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.6% to 97.65 but is higher currently. Stock index futures point to higher market openings today.

DJI bounces off resistance   08/26/2019 Market Overview IFC Markets chart

DAX 30 leads European indexes movement

European stocks retreat accelerated on Friday after China announced it imposes tariffs on $75 billion of US goods. EUR/USD joined GBP/USD’s decelerating climb on Friday with both pairs reversing their directions currently. The Stoxx Europe 600 Index lost 0.8% Friday. The DAX 30 dropped 1.2% to 11611.51. France’s CAC 40 tumbled 1.1% and UK’s FTSE 100 slid 0.5% to 7094.98.

Nikkei leads Asian indexes losses

Asian stock indices are in deep red today after President Trump called for US companies to start moving out of China and announced new tariffs on Chinese goods after Beijing unveiled new retaliatory tariffs last Friday. Nikkei fell 2.2% to 20261.04 despite reversal of yen ‘s climb against the dollar. China’s markets are falling: the Shanghai Composite Index is down 1.2% and Hong Kong’s Hang Seng Index is 2.1% lower. Australia’s All Ordinaries Index turned 1.3% lower as the Australian dollar reversed its slide against the greenback.

Brent futures prices are extending losses today on global growth slowing concerns after US-China trade dispute escalation. Prices fell on Friday: Brent for October settlement ended 1.2% lower at $59.34 a barrel Friday.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Warning for investors: Hopes for a Brexit deal are offset by escalating trade war

By George Prior

A Brexit deal now appears more likely than a U.S.-China trade de-escalation – but global financial markets are still to remain highly volatile in the near term, meaning investors should revise their portfolios.

This is the warning from the CEO and founder of one of the world’s largest independent financial advisory organizations.

Nigel Green comments: “Global financial markets are likely to fall on Monday and remain highly volatile in the near-term on geopolitical headwinds. This means investors should revise their portfolios to safeguard their wealth whilst simultaneously taking advantage of the buying opportunities.”

He continues: “There does seem to be a glimmer of hope of the UK securing a Brexit deal with the EU. This is largely due to fears that a no-deal Brexit will seriously hit EU economies, many of which are already on the brink of a recession, including the largest one – Germany.

“The last thing the EU needs is the UK to crash out in a no-deal scenario, dragging down its own vulnerable economies. As such concessions towards UK Prime Minister Boris Johnson’s approach seems increasingly likely.”

He goes on to say: “However, this chink of light in a major geopolitical issue will be offset by escalating trade tensions between the U.S. and China.

“The increasing trade dispute between the world’s two largest economies is impacting not only their own economies, but also economies across the world.

“And as further tariffs, punitive sanctions on firms and, possibly, currency devaluations are likely, the situation can be expected to create further market turbulence in the near-term.”

In a media statement on Friday, the deVere Group CEO said investors could also capitalize on the current geopolitical climate. He noted: “Investors should embrace some volatility as important buying opportunities.

“Fluctuations can cause panic-selling and mis-pricing. Sought-after stocks can then become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all typically results in better returns.

“A good fund manager will help investors seek out the opportunities that turbulence creates and mitigate potential risks as and when they are presented.”

Mr Green concludes: “Investors need to stay invested, carefully monitor the geopolitical factors that drive returns, ensure portfolios are properly diversified and revise their portfolios where necessary in order to sidestep the risks and benefit from the major buying opportunities.”

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.

 

 

 

Retrophin Shares Fall 30% on Failed Phase 3 FORT Study

By The Life Science Report

Source: Streetwise Reports   08/22/2019

Shares of Retrophin fell to a 52-week low on the news that topline results from its fosmetpantotenate Phase 3 FORT Study for PKNA treatment failed to meet expectations.

Biopharmaceutical firm Retrophin Inc. (RTRX:NASDAQ) shares are trading much lower today as the company announced that the Phase 3 FORT Study evaluating the safety and efficacy of fosmetpantotenate compared to placebo in patients with pantothenate kinase-associated neurodegeneration (PKAN) did not meet its primary endpoint and did not demonstrate a difference between treatment groups. Though fosmetpantotenate was observed to be generally safe and well tolerated in the study, the study also did not meet its secondary endpoint.

The company’s CEO, Eric Dube, Ph.D, commented, “We are very disappointed in the topline results from the FORT Study, particularly because we have seen the devastating impact of PKAN on patients and their families, and a significant unmet need remains with no approved treatment option. We would like to thank the patients, their caregivers, study investigators and our employees, whose dedication made this study possible…We will work closely with the investigators to further analyze the results of the study and share them with the PKAN community to contribute to the growing knowledge of this rare disorder.”

The firm indicated that the data from the FORT Study are expected to be presented at an upcoming scientific congress, and that Retrophin will be working with study investigators to determine the appropriate next steps for the FORT Study, including the ongoing open-label extension of the study.

The company advised that it still remains focused on progressing its two other pivotal Phase 3 programs evaluating sparsentan for the treatment of focal segmental glomerulosclerosis (FSGS) and IgA nephropathy, and continuing the advancement of its commercial portfolio.

The FORT Study was an international, randomized, double-blind, placebo-controlled, Phase 3 clinical trial assessing the safety and efficacy of fosmetpantotenate in 84 patients with PKAN, a rare, genetic and life-threatening neurological disorder estimated to affect up to 5,000 people worldwide. PKAN is characterized by a host of progressively debilitating symptoms that typically begin in early childhood. People suffering from PKAN may experience movement disorders such as dystonia (sustained muscle contraction leading to abnormal posture), rigidity, dysphagia (problems swallowing), and twisting and writhing, as well as visual impairment.

The firm notes that PKAN is caused by a mutation in the PANK2 gene, which encodes a critical protein that phosphorylates vitamin B5 (pantothenate), generating phosphopantothenate. The disruption of this metabolic pathway ultimately leads to decreased levels of coenzyme A (CoA), which is essential in biochemical reactions impacting energy metabolism, membrane integrity, signaling and other critical processes.

Retrophin describes its business as a biopharmaceutical company specializing in identifying, developing and delivering life-changing therapies to people living with rare disease. The Company’s approach centers on its pipeline featuring late-stage assets targeting rare diseases with significant unmet medical needs, including fosmetpantotenate for pantothenate kinase-associated neurodegeneration (PKAN), and sparsentan for focal segmental glomerulosclerosis (FSGS) and IgA nephropathy (IgAN), disorders characterized by progressive scarring of the kidney often leading to end-stage renal disease. Retrophin’s R&D efforts are supported by revenues from the company’s commercial products Chenodal, Cholbam and Thiola.

RTRX shares opened lower today at $12.51 (-$4.89, -28.10%) from yesterday’s closing price of $17.40. Today, the stock has traded between $11.84 and $12.98/share setting a 52-week intraday low price on greater than 15 times average volume. At present, shares are trading at $12.84 (-4.56%, -26.21%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: RTRX:NASDAQ,
)

Novo Scores +1 Gram Per Meter at Egina

By The Gold Report

Source: Bob Moriarty for Streetwise Reports   08/22/2019

Bob Moriarty of 321 Gold comments on the bulk sample assays from the company’s Egina project in Australia.

It’s been eight months since I have delivered an update on Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). While Novo has put out a fair number of press releases since then I have been waiting for some solid red meat. They have just put out red meat that should satisfy the Novo faithful and really irritate all the naysayers who live to rain on Novo’s parade.

In the piece I wrote in December of 2018 I covered the important numbers about alluvial production so any nitpickers should reread the piece. Basically it’s really cheap to process alluvial gravel and is always done with heavy equipment so is measured in cubic meters or cubic yards because that’s how heavy equipment is used. A dump truck or front-end loader will hold X meters or yards. All you are doing is moving dirt.

I was at Egina last year. I made it clear that what I saw was exceptional. Novo owns two mining licenses that cover 5 square km apiece.

Due to very sensitive issues about native title and control, you simply cannot just wander about the desert taking samples. Illegal prospectors will often sneak onto the reserve at night with metal detectors to snipe. If the locals catch them in the act they will give them a thumping, destroy their equipment and throw them off the property. So Novo has been highly limited in what they can and can’t do before coming to an arrangement with the native people.

I think I did a good job of explaining the theory last year but now that Novo has delivered solid numbers I can talk about the practice.

Novo used GPR (Ground Penetrating Radar) to identify a swale or depression in the subsurface terrain on one of their two concessions. In theory that is where you should find the richest gold.

As I write the bid on gold is $1498.70 making a gram of pure gold worth $48.19 USD. In their initial tests, Novo found 292.38 grams of 89% to 95% purity gold nuggets out of 281.9 cubic meters of gravel from surface. Please note that these were gold nuggets of 1 mm or larger. There will be some small gold but Novo has not determined the quantity yet.

If you use a nice conservative 90% purity for the gold and an even 1 g/m at $48 a gram, I come up with a total value of $43.20 per cubic meter. You can add the small gold later but I would be astonished if it were over 5% of the total weight so I will ignore. I love being conservative so I will say in that swale the processed gravel was $40 a cubic meter in gold values.

I could process that for $8 a cubic meter, Keith Barron could process it for $10.70 a cubic meter in Montana but let’s be really conservative and say you aren’t very good at this and it costs you $20 a cubic meter because you are so ham fisted.

A 50% margin on an alluvial project would be a home run out of the park in any alluvial project on earth and half of Mars.

Those who want to whine about everything Novo does will sputter and explain that just because this swale is wildly profitable, not all of the 1,000 square km that Novo owns around Egina would be as profitable. But those people couldn’t get permits to strip mine 1,000 square km in a lifetime of lifetimes.

Just because something is true doesn’t mean it is meaningful. I’m wearing blue socks and there is no elephant in the room. Both statements happen to be perfectly true but are perfectly meaningless.

But by using the GPR to narrow down the most attractive and prospective 5% Novo or whoever buys Novo will be producing gold at a good margin for twenty years past when I am pushing daisies just with their current land position. And who knows, there might be another 25% of that land position that is still economic below $40 a meter.

I’ve been a Novo shareholder since before they were Novo. I’ve participated in almost every private placement and clearly I am biased. Novo is an advertiser so do your own due diligence.

Novo Resources
NVO-V $2.52 (Aug 22, 2019)
NSRPF $1.90 OTCQX 178.8 million shares
Novo Resources website.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Novo Resources. Novo Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: NVO:TSX.V; NSRPF:OTCQX,
)

S&P 500 Index Must Bounce Here Or Hold On Tight!

By TheTechnicalTraders.com

The fragility of the markets can not be underestimated for investors at this time.  Our research has continued to pick apart these price swings in the US stock markets and our July predictions regarding a market top and an August 19th (or near) breakdown price move have been SPOT ON.  We’ve heard from hundreds of our members and followers regarding our research and predictive analysis work – many thanking us for our dedication to helping traders/investors.  Some people, although, didn’t quite understand the message that we were trying to deliver.

So, in this message, we are going to try to make it very clear for everyone. But first, be sure to opt-in to our free market forecasts newsletter

First, we believe the US and Global markets are setting up for a broad price sell-off/reversion move.  This means we believe the US and Global stock markets could move lower and contract by relatively large percent levels (15% to 25% or more) in the coming months.

Second, we believe this reversion process is related to a number of factors which we’ve highlighted in previous research posts.  The US Presidential Election cycle (2020) is one factor.  The continued US/China trade war is another factor.  The slowing global economy is yet another factor, and the concerns regarding the EU, BREXIT and continuing global economic activity are yet more factors.

Third, every investor should be able to understand we have completed a massive phase in the global markets after the 2008 market crisis that includes the bottoming phase, the revaluation phase, the asset inflation phase, and the asset valuation maturity phase which we are currently in now.  In other words, the past 9+ years has resulted in an incredible recovery process that is very mature at this time and full of overvalued assets throughout the globe.

Lastly, we believe the combination of these factors and the process of moving forward through the normal economic cycles related to a mature global asset valuation phase would result in a fairly common process of a “price reversion” which is an attempt to allow price to explore new lower levels to identify “true value” and for traders/investors to begin a new phase of price inflation.

We’ve been sharing one of our favorite price analysis tools with our followers, the Fibonacci price theory.  This theory suggests that price MUST ALWAYS attempt to seek out new highs and/or new lows – AT ALL TIMES.

Think about that for a minute.  If the price can’t move higher to seek out new highs (because of some fundamental or economic reason or event – like the end of a mature economic price inflation cycle), then what would price attempt to do??  That’s right – it would attempt to move lower and establish some new LOW PRICE level as a process of “revaluing” asset prices.  This new “true value” level would allow the price inflation process to begin as the reversion in price would have washed away the concerns of price maturity/overvalued assets.

Now, as we attempt to move forward with our research, please understand that we believe the large downside price move last Friday is just the beginning of an extended setup and downside rotation that may take place over many months.  Ultimately, we believe the end of September and into early October will be the most volatile for the US and global markets.  Still, we have to deal with what is happening right now – before we get to the end of September and into early October.

If you have not seen our July 13th technical analysis talking about the week of Aug 19th for the stock market and vix be sure to read it now.

The Laymans Technical Trading Chart

The chart below shows a simple visual of what we expect over the next few days based on our technical trading tools and signals. IF you dig into the more detailed version using our ES Fibonacci modeling chart you will understand a lot more goes into this analysis, and there are several support levels we are watching.

Daily ES Fibonacci Modeling Chart

This Daily ES Fibonacci modeling chart highlights the fact that the current Bearish Fibonacci Trigger level, near 2880, has been breached and downside target levels are 2685 and 2700.  Obviously, the support level near the ORANGE MA (2800) is still a critical level for the price before we can consider the 2700 level any type of real target – yet we believe this breakdown move is not over.  We believe support near 2780~2800 will still act as an immediate price floor and that price may stall near this level.   The only exception to that support level would be some news-driven event taking place that pushes the price below that support level on very heavy volume.  So, please understand, our expectation is that 2780 will be price support right now – but that support may be completely blown away on heavy selling based on critical news.

Weekly ES Fibonacci Price Modeling Chart

This Weekly ES Fibonacci Price Modeling chart shows a bigger picture of what we are expecting.  The BLUE Fibonacci target square on this chart (just below 2800) is the current price support level.  Notice how that level aligns with our earlier 2780 to 2800 support level?  You’ll find that many times the Fibonacci price modeling tool is showing very similar analysis across different intervals because it attempts to dissect the core price elements that make up the Fibonacci price structures.  Moving on…

The deeper Bearish Fibonacci Trigger level, near 2580, is critical.  We will not enter a new confirmed Weekly Bearish trend until the price is able to CLOSE BELOW that level.  So, we still have -300 points to move lower before we can potentially CONFIRM a new bearish price trend that could continue to move much lower before finding a bottom.  This happens often in very volatile markets where price MUST move outside of existing price rotation levels to establish a new trend.

In Fibonacci price theory, and the way our Fibonacci price modeling system works, price must move clearly outside and away from existing recent price rotation levels (as the adaptive learning Fibonacci model tracks price) to qualify as a new trend.  In this case, we still have a long way to go before we get true Bearish price confirmation on this Weekly chart.

We urge all traders to follow our research and posts so you have a better understanding of where the markets are within the short term, and long term trends and expectations.  We understand you may not completely grasp some of these advanced tools and price modeling systems we use to analyze the markets and price trends.

Because of this and the fact that these market forecasts are not trading strategies joining our Wealth Building Newsletter for ETFs is the best way to be sure you take advantage of these moves without exposing your portfolio to high volatility and added risks.

We, honestly, don’t expect you to have gained the same level of understanding we have because we have been studying the markets and developing specialized tools based with our combined knowledge of 50+ years experience studying all types of price theories, technical analysis, and trading systems.

This experience and knowledge are what allows us to help you find and execute better trades, which is why our trading portfolio keeps making new all-time high watermarks even during this months market correction.  We do the work, you profit from our ETF trading newsletter signals.

Chris Vermeulen
TheTechnicalTraders.com

 

This week in monetary policy: Kyrgyzstan, Hungary, Jamaica, Iceland, Israel, Fiji, Botswana, Gambia, South Korea, Bulgaria, Colombia & Dominican Rep.

By CentralBankNews.info

    This week – August 25 through August 30 – central banks from 12 countries or jurisdictions are scheduled to decide on monetary policy: Kyrgyz Republic, Hungary, Jamaica, Iceland, Israel, Fiji, Botswana, Gambia, South Korea, Bulgaria, Colombia and the Dominican Republic.
    Following table includes the name of the country, the date of the next policy decision, the current policy rate, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.
    The table is updated when the latest decisions are announced and can always accessed by clicking on This Week.
WEEK 35
AUG 25 – AUG 30, 2019:
KYRGYZ REPUBLIC26-Aug4.25%0-504.75%
HUNGARY27-Aug0.90%000.90%         EM
JAMAICA27-Aug0.75%0-1002.00%
ICELAND28-Aug3.75%-25-754.25%
ISRAEL28-Aug0.25%001.10%         DM
FIJI29-Aug0.50%000.50%
BOTSWANA29-Aug5.00%005.00%
GAMBIA29-Aug12.50%0-10013.50%
SOUTH KOREA30-Aug1.50%-25-251.50%         EM
BULGARIA30-Aug0.00%000.00%         FM
COLOMBIA30-Aug4.25%004.25%         EM
DOMINICAN REPUBLIC30-Aug4.75%-25-755.50%