It’s the weekly commodity edition of What the FICC?
Every day we have the choice to either follow the news or follow trends. I choose the latter…
Check it out!
Expert technical analysis of financial markets by JC Parets
by Ian Culley
It’s the weekly commodity edition of What the FICC?
Every day we have the choice to either follow the news or follow trends. I choose the latter…
Check it out!
by Ian Culley
Inflation has peaked!
Or so I’ve been told…
Rates are rolling over, undercutting their June highs from last year. High-yield debt, including emerging-market bonds, is catching a bid.
And major commodity indexes are on the verge of breaking down.
That all sounds logical to me.
But just because inflation might begin to ease doesn’t mean I’m taking a bearish stance on inflationary assets, especially commodities.
As crazy as that may seem, these next four charts support my case…
by Ian Culley
It’s the weekly bond edition of What the FICC?
The relative strength of Emerging Market bonds shores up the ongoing bottoming process for risk assets.
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by Ian Culley
From the Desk of Ian Culley
It’s impossible to ignore – investors are reaching for risk.
Biotech stocks are catching higher. Copper futures are working on their tenth up-day in a row. Even the Emerging Market HY Bond ETF $EMHY is breaking to 7-month highs as it completes a multi-month base.
And don’t forget about Silver! Gold’s crazy cousin has proven by far the best-performing asset since the US dollar peaked last fall. Strength among these market areas indicates a healthy risk appetite.
I can’t overlook these signs of a constructive bottoming process, especially considering the next chart…
by Ian Culley
It’s the weekly currency edition of What the FICC?
The US dollar index $DXY registered a “death cross” last week, confirming a bearish trend reversal.
But it’s not the confirmation of the dollar downtrend that has my attention. It’s what the signal suggests for stocks in the coming months and quarters.
Check it out!
by Ian Culley
From the Desk of Ian Culley @IanCulley
Perhaps you’ve noticed that I don’t use moving averages.
For starters, I don’t like the way they look.
They muddy the pristine waters of price. And if I can’t pick up on the underlying trend by looking at price action, then god help me.
Regardless, I do my best to stay open-minded. Everyone has their own process. Mine works for me, but that doesn’t make it superior by any stretch.
So, when Grant @GrantHawkridge dropped a US Dollar Index $DXY moving average crossover study in our analyst Slack chat last weekend, I couldn’t resist.
It wasn’t because it highlighted the “death cross” (when a 50-day moving average falls below a longer-term 200-day average), which always stirs a great deal of excitement.
Nor was it what his study suggests for the dollar in the coming weeks and quarters.
Rather, it’s what it implies for US stocks.
by Ian Culley
It’s the weekly Gold Rush!
As gold futures approach a significant area of overhead supply, we cover the most important charts in the space.
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by Ian Culley
From the Desk of Ian Culley @IanCulley
The NYSE might be closed today, but futures markets are open.
And while the volume remains low during US trading hours, it hasn’t stopped Gold futures from revisiting a critical level.
Gold currently challenges a price level engrained in goldbugs’ minds worldwide…
The prior commodity supercycle peak!