Markets Morning - Buckle Up for the US Open!
Buckle Up
Sit down, put your seatbelt on and buckle up because things are about to get seriously interesting as we start the week.
I personally can't see anything other than more selling in equities to start the week as the flow on effects from Trump's protectionism policies and the mounting trade war with China continues to play out.
Futures markets across Asia are all opening down and further losses are expected to continue through Europe and into the US session when things should get really interesting. Take a look at the following chart:
S&P 500
Last week's selling rout took back all of the small recovery that saw price push back up to swing highs from the previous February drop. Textbook price action and a textbook sell off that should see new lows made from here.
I see some of the big banks such as JP Morgan are all issuing buy recommendations, but you know what I think of that biased, self serving bullshit...
All About Price
Heading into a quiet week in terms of data all that matters is price. Well, like anything else matter anyway, but you know what I mean!
I see people talking about whether the S&P 500 can close below the 200 day moving average, but I'm all about these swing lows and whether any short term strength continues to be sold. There are going to be some good trades in there for the short term guys, I can feel it.
What we definitely can see already, is a clear change in sentiment from bullish to bearish. The party is over and things are going to get fun from here.
Just lastly, we also had Treasury Secretary Steven Mnuchin speaking on the weekend and saying that he's cautiously hopeful that the US and China can agree to terms on this tariff rubbish. China have been talking publicly about opening their financial services sector, but if I'm honest, both are going to just say things publicly to appease political influencers behind closed doors.
It's sad when the US is spoken about around the same smoke and mirrors bullshit that China is. Welcome to 2018.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
Hi @forexbrokr,
Good subject to share with us. How is the down pricing of S&P going to effect either bullish or bearish price movement for over all Forex and BTC markets?
That is a good question. I have been doing some research on this. IMHO the falling S&P will not lead to a flow of money into crypto as some people expect.
I think you’re right in theory... but it’s not playing out that way in reality. YET.
This is what makes tonight’s price action so interesting if stocks crash deeper.
That chart looks nasty. I think the market has been running on fumes for some time now. The 'trade war' headlines might be the final nail in the coffin in the short term.
I want to see it go further just to see where the money flows. Will it come to crypto?
I think so, it's the next viable asset class.
currency markets looks bearish this week too. i'm looking to take short positions on most of my trades today and adopt a see how it goes attitude.
Just make sure you manage your risk. Things can change in an instant.