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Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...

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...If the dots don't connect, gather more dots until they do...or, just follow the $$$...

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NOTABLE POSTS WITH IMPORTANT UPDATES...

Monday, August 19, 2019

MSCI World Indices Weakening

The following daily chart of the MSCI World (ex USA) Index shows that price has dropped, once again, to just above the 1800 level (as of last Friday's close).

The MACD histogram and RSI indicators are hinting that price is attempting to stabilize on this short-term timeframe and may reverse its decline that began in early July.


The following monthly chart of the MSCI World, Global (incl USA) Indexes shows that price is stuck at a triple-top formation, after failing to break out and hold above an all-time high set in January 2018.

The RSIMOM and ROC indicators have yet to make a new swing high above those also set in January 2018.


In summary, keep an eye on:
  • both of these indices and short and longer term timeframes, along with their indicators, as well as 
  • US 10-Year Treasury yields and ROC and ATR indicators, as outlined in my post of August 16
for clues that world markets may, finally, be paying attention to negative effects of negative bond yields and then weakening further as a result.

In this regard, this Zero Hedge article outlines why negative rates do not bode well for world economies, markets and more...

Source: ZeroHedge.com


Sunday, August 18, 2019

High Yield Corporate Bonds: Breakout Or Breakdown?

The High Yield Corporate Bonds ETF (HYG) is at an interesting juncture.

There are, potentially, two uptrend lines that one could apply to form a large long-term triangle pattern on the following monthly chart. In turn, two possible triangles and two apexes emerge.

Price has been bouncing in between both apexes (and upper edge of this triangle) since February of this year. Attempts to fully break out and move higher have failed repeatedly since then.

In the short term, I'm more interested in the upper apex (blue) because the price, once again, sits outside and below the smaller triangle, while it's still inside the larger one.

I've added the rate-of-change (ROC) indicator in two formats. The input value of the first one is the default nine-period length, while I've changed the input value on the second one to a short one-period length.

If price breaks and holds above this upper apex, I'd monitor the second ROC indicator in the near term to see whether there is a sustained acceleration (above its zero level) to confirm support for continued buying. At the moment, it is accelerating to the downside below the zero level.

Otherwise, if it holds below this upper apex, price may decline to the lower apex, or lower, especially if the second ROC continues to accelerate on the downside.


Friday, August 16, 2019

US 10-Year Treasury Yields Near 60-Year Lows

* See UPDATE below...

Once again, US 10-Year Treasury yields are approaching 60-year historical lows set in mid-2012 and mid-2016, as shown on the following monthly chart.


Shown on the next shorter-term monthly chart are the Rate-of-Change (ROC) and Average True Range (ATR) indicators (in histogram format and with an input value of one period).

Should this rate continue to fall, and, in particular, if it breaks and holds below the previous lows, I'd say that US equity markets would weaken considerably. In that regard, watch for accelerating larger spikes on both histograms for confirmation of further yield drops. Otherwise, watch for large sustained spikes to confirm a serious turnaround to the upside...with US equities strengthening.


* UPDATED August 18...

This Zero Hedge article outlines why negative rates do not bode well for world economies, markets and more...

Source: ZeroHedge.com


In this regard, the following daily chart of the MSCI World (ex USA) Index shows that price has dropped, once again, to just above the 1800 level.

The MACD histogram and RSI indicators are hinting that price is attempting to stabilize on this short-term timeframe and may reverse its decline that began in early July.


The following monthly chart of the MSCI World, Global (incl USA) Indexes shows that price is stuck at a triple-top formation, after failing to break out and hold above an all-time high set in January 2018.

The RSI, MOM and ROC indicators have yet to make a new swing high above those also set in January 2018.

In summary, keep an eye on both of these indices and short and longer term timeframes, along with their indicators, as well as US 10-Year Treasury yields and ROC and ATR indicators, for clues that world markets may, finally, be paying attention to negative effects of negative bond yields.


What Does Dr. Copper Signal For Global Markets?

The following monthly chart of Copper shows that price is hovering above the apex of a very large long-term triangle.

Since early 2018, it hasn't been able to break out above the upper edge of this triangle, confirming the weakness that we've been seeing in global markets, to date. My last article summarizes this weakness in a nutshell.

I've shown the Rate-of-Change (ROC) and Average True Range (ATR) indicators in histogram format with an input value of one period. I'd watch for a series of larger spikes on each to signal, either serious and sustained buying, or a plunge to further lows (as another gauge to track global market strength/weakness). Otherwise, continued smaller spikes would accompany more range-bound, tepid trading in Copper, as well as global markets, in general.


Monday, August 12, 2019

World Market Weakness & Negative Yielding Debt

The following 1-year daily charts of major world markets show that some of them have broken below their mid-year lows, while others are close to a retest.


In the following two videos of BNN Bloomberg's August 9 interview with David Prince, it's clear that market weakness is not President Trump's fault, in spite of what many media pundits would have you believe.

As David outlines, there are many factors at play, contributing to economic slowdown, that are affecting markets worldwide.
"New records are being made, specifically with the value of negative-yielding debt (that you basically pay to own) now screeching to $15 Trillion worldwide."

Just glancing at the charts above, I'd say that if the remaining markets break and hold below their mid-year lows, we'll likely see an escalation of, not only worldwide market weakness, but also economic weakness...potentially leading to a recession in the not-too-distant future.






N.B. If you can't see or play these videos, you can find them here and here, respectively.

Monday, August 05, 2019

NEWSWORTHY

Source: ZeroHedge.com

Trade War Battles Escalate As The Alligator Bites

My post of July 14 discussed the trade war between China and the US and the effects it was having on China, in particular. Since that date, I added several important updates on that post, which are definitely worth reading...the latest one was earlier today (Monday).

The following World Stock Markets heat map shows the major losses incurred by world markets at their respective closes today...not a pretty picture.


Volatility has ramped up significantly since July 26 and price closed on the following SPX:VIX monthly ratio chart well below the 150 Bull/Bear Line-in-the-Sand level at 115.69.

Price action on this ratio peaked in January 2018 and it has made a series of lower highs, which are clearly evident on the next three charts (depicting monthly, quarterly and yearly timeframes, respectively)...indicating that the successive rallies in the SPX were getting weaker.

A drop and hold below 100 on this ratio could produce an acceleration of the selloff, sending the SPX down to, at least 2600, or even 2400, as I described in one of my updates in the above-mentioned post.





A drop to 2600 would land price on the median of this long-term uptrending regression channel (after nearly tagging a target price of 3047 identified in my post of June 29), as shown on the following SPX monthly chart.


And, as I warned in my aforementioned post of June 29, the alligator formations on the YM, ES, NQ and RTY E-mini Futures Indices have now crossed, hinting of further weakness ahead.

Of note, is price relative to the 200-day MA (yellow). If we see an acceleration of selling to take the ES and NQ below it, I'd say that the SPX has a good chance of hitting 2600, or lower...watch for price to drop and hold below 100 on the SPX:VIX ratio for confirmation. Inasmuch as the YM and RTY are already below their 200 MA, we'll see if they can catch a sustainable bounce anytime soon to lead the other two back into recovery mode. Otherwise, look for the YM and RTY to lead the others in a continued selloff.