Stocks surprised even is yesterday as we stated that ‘even though the China trade optimism is nonsense, that stocks would continue to rely on the unicorns farting rainbow idea that Powell had been assimilated.’ Apparently he is doing the assimilation now. More below.
Global equities are lower. Following through yards yadda yadda. You get it. When the US sells off the world follows. When the world sells off, the US doesn’t as much.
Gold held its own as stocks dropped, yields broke their streak lower, and the USD weakened. *example of lazy journalism explained*
So Far Today:
DX is stronger, and Gold is trading $1226.40. We are watching the technical levels given by Mr. Moor today closely.. and may play a trade on his levels simply because it is consistent with our macro and likely a micro signal today.
Technicals via Moor Analytics:
Today’s VBS/ RTM Levels:
- Daily- none
- 4 hour- none
- 1 hour- 1225.6- 1222.90 (Low confidence)
+Bank of Japan Governor Kuroda stuck to his stance. Negative interest rates are still needed.
+ the RBA said that the next move in rates is more likely to be higher than lower, but there is no strong case for a near-term move. *IMF counterpoint*
+ The UK-EU negotiated deal has few friends, but there is no agreement on an alternative or even an alternative leader.
+ Powell, Clarida, and Williams. We understand all three to have signaled intentions to continue to raise interest rates gradually.
+Aud- lets go to the charts
+US dollar continues to be within striking distance of MXN20.50, the recent high.
+US dollar looks content in a CAD1.3150-CAD1.3200 near-term trading range.
+The euro initially extended its gains toward $1.1470 in late Asia before being sold to nearly $1.1420 where bids were found in early Europe. The $1.1400 area offers support, and there is a $1.15 option that is rolling off today for nearly 615 mln euros.
+Sterling is trading just inside yesterday’s range (~$1.2795-$1.2885). Chart resistance is seen in the $1.2900-40 area.
+Yuan chart- gold is a Yuan tracker more and more.
Data on Deck:
+The US reports housing starts: Housing starts stood at 1.201 mln in September. Bloomberg survey is for pick up to 1.225 mln.
Took a long position on a 60 minute break out that was stopped proper. Subscribers saw some good stuff from The Godfather in ES as he was in his element
Dalio and Gold:
Bridgewater, the world’s largest hedge fund with about $160
billion in assets, has been a steady holder of gold through the
two largest bullion-backed exchanged-traded funds, Bloomberg
News reported last week. Dalio has said that investors should
consider placing 5 percent to 10 percent of their assets in gold
as a hedge against political risks.
One of Dalio’s main points, backed up by the rise in global
debt, is that the entire world is “leveraged long.” Low interest
rates fueled buybacks, acquisitions and increasing stock prices.
That can’t last forever. Broadly, “You need to prepare for lower
expected returns in the future,” Dalio said. “You can expect
Good Luck. See you in the chat