Currencies

Japan Markets: The Great Keynesian Fail Of 2016?

Today, we look at the Japanese markets and their big monetary policy gamble that has yet to pay off. Interest rates went to zero, then negative. How far will policy makers go to create growth? We will likely find out soon if Japanese markets continue to lag and/or inter market…

Global Divergence Warned Of Pullback In U.S. Bank Stocks

In May, Arun Chopra, CFA, CMT and I noted the following market divergence between U.S. bank stocks (XLF) and Deutsche Bank (DB). We were concerned that U.S. bank stocks may get pulled down by fellow European banks such as Deutsche Bank. Here’s the chart from May: In May, we asked “It doesn’t matter…

BREXIT Vote To Clarify British Pound’s Next Move

As of this writing, we do not yet know the outcome of the Brexit vote. Even so, we expect the event to jostle the British Pound into one of two possible Elliott wave scenarios. Whichever path the British Pound takes, it should produce good trade openings over the coming months….

Japanese Yen Wave Pattern Points To Coming Decline

If the U.S. Dollar continues to rally, as we showed in the forecast we posted in May , then it should set up favorable conditions for short trades with respect to paired currencies. Often we chart those developments using futures contracts, but there are also several forex ETFs that are…

US Dollar Index: Time To Start Buying The Dips?

The latest US Dollar Index rally has been met with a lot of conjecture around what it means, etc.  It seems that most don’t believe in the rally and are expecting further weakness. I agree on the possibility for near-term weakness in the US Dollar, but that’s a matter of technical…

5 Trading Ideas For Bulls ($RTN, $CHKP, $MDT, $UPS, $BTCUSD)

At the end of every trading month I like to scan through monthly charts to gain some context about the general health of the market and to see what kind of stocks are setting up for longer term moves. It also helps me find some high probability trading ideas. The “Sell In May”…