Friday, March 16, 2018

Some Worrying Ascending Wedges in SPY and QQQ

There's not much to say except a couple of ascending wedges have appeared with patterns that may resolve in some pretty key ETFS, namely QQQ and SPY. Near term sell signals have also appeared in the EMA's so its very likely, as I have alluded to in previous posts, the fall last month has not resolved and that there would be a bounce.

Thursday, March 15, 2018

An Unwelcome Development: Faith Is Being Lost

China unloads Blackstone stake amid Trump trade tension

China's sovereign wealth fund has sold its stake in Blackstone Group, the US private equity firm has said, ending a decade-long investment at a time of simmering bilateral trade tension. Blackstone said in an annual report released earlier this month that China Investment Corp (CIC) had recently unloaded the stake that it first began to acquire in 2007 when China sought lucrative ways to invest its massive foreign exchange reserves.

China Continues To Clean

State Grid supplies cleaner energy

The State Grid Corporation of China is building an energy-services company to promote the distribution of clean energy as part of its efforts to restructure energy consumption in the country, said the corporation's chairman.

Update: Financial Services (XLF) Ascending Wedge Forming

Sorry my previous post was supposed to be published two days ago and the picture has now changed quite dramatically. It no longer looks like a breakout but rather a bearish ascending wedge!

Financial Services (XLF) Breakout OR Double Top Forming?

I'm being inundated by moves in the charts because everyone seems to be moving at once, but Financial Services ETF XLF has just broken out of a condensing triangle. My apologies but the signal went in a few days ago but yesterday we had a confirmation signal with a move and close above $29.40. I'd be very careful as this approaches $30.20 and for now I'm just watching. Many observers have said that the bearish case has not been totally invalidated from a technical standpoint and for now (as I am pessimist and rather cautious by nature) I think watching is just fine. You have to wonder, perhaps this is a double top going in? I'm interested in hearing what others think.

Tuesday, March 13, 2018

Why Does This Always Sound Like History Repeating Itself?

J-20 stealth fighter's capabilities to be enhanced

China will continue to improve and upgrade its cutting-edge J-20 stealth fighter jet, giving it more capabilities than merely penetrating an enemy's air defense networks, according to its chief designer.

Monday, March 12, 2018

Emerging Markets (EEM) And China (FXI) Set To Breakout

I'm not sure where all this optimism and euphoria is coming from but China Large Caps ETF FXI and Emerging Markets ETF EEM are set to breakout despite a warning that they are at risk of a banking crisis (Bloomberg article here). Everything looks to be in place with some long-term markers imminently about to turn over while the near term EMA's already have. FXI is currently caught in a condensing triangle so it could go either way but my feeling is it's about to go upside.
EEM looks very similar here with a convincing breakout. Today will be our confirmation of the breakout if we have a close above the resistance line.

I Expect The Chinese To Be Buying All These

France gears up for next wave of asset sales

French President Emmanuel Macron will be putting his investment banking chops to use in coming weeks as his government prepares a new wave of state asset sales to pay for his "disruptive innovations" fund.

Uhhh I Don't Think So, Some Other Warning Signs Are Present

Return of market volatility no cause for alarm: BIS

Volatility on the financial markets is back, but central banks need not be alarmed by any sudden ructions and jolts as crisis-fighting measures are gradually rolled back, the Bank of International Settlements said on Sunday.

Fintech Continues To Spread, Still Bullish On Blockchain

How Blockchain can 'revolutionise' the world

Proponents of blockchain technology say that it is set to revolutionise the world with wide-reaching applications in finance, academia, and international trade. Blockchain - known as distributed shared ledgers - is a technology that records and verifies transactions based on cryptography.

Sunday, March 11, 2018

An Exercise We Are Only Starting Now

Trade wars: Counting the cost of Trump's tariff plan

In a controversial move this week, US President Donald Trump has imposed steep tariffs of 25 percent for steel and 10 percent for aluminium imports to the US, which will take effect in two week's time.

Friday, March 09, 2018

BTFD For Consumer Staples?

Maybe the signing of the Tariff Law had something to do with this although in reality it should be having the opposite effect if Trump understood the kind of refined products his country makes rather raw resources, but Consumer Staples ETF XLP is showing some life. We have a break in the sharp trend line as well as a buy signal on one of long-term indicators. XLP also makes these episodic dalliances below the MA(144) to power ahead for a while on longer term charts. It is an awkward pattern I'll admit but it feels like a good move and I think yesterday confirms that. I expect overhead resistance to be somewhere around $56.40.

Steel Tariffs: He's Clearly Making This Up As He Goes Along

Canada, Mexico, Others Could Be Spared From US Tariffs on Metals

Some countries are now likely to be spared from planned tariffs on metals advocated by U.S. President Donald Trump. "We expect that the president will sign something by the end of the week, and there are potential carve-outs for Mexico and Canada, based on national security, and possibly other countries as well, based on that process," White House press secretary Sarah Huckabee Sanders told reporters Tuesday.

Thursday, March 08, 2018

I Agree, But Do You Think This Is Really Going To Happen? I Mean, Really?

Rand Paul: It’s time to pass Audit the Fed

Despite overwhelming support from the American people for action, and a grassroots push that has led to multiple victories in the U.S. House of Representatives, the Senate has so far failed to follow the lead of our colleagues across the Capitol to Audit the Fed.