Commodities markets have performed poorly compared with stocks over the past 3 years. From industrial metals to agricultural commodities deflationary pressures are being felt worldwide. Platinum prices which is almost 50% lower than 2008 historical high levels, is now testing a 15 year-long trend support. Usually prices should rebound sharply from such historical level. However, over […]
During the sharp correction in October 2014, S&P 500 index reached 1,800 levels and CBOE VIX jumped to 31 levels. VIX is often called the “fear index”. Higher levels of VIX can coincide with market corrections. Over the past 2 months CBOE VIX has been consolidating in a tight range. Consolidation can be a symmetrical […]
Austria Vienna ATX Index formed similar chart patterns in different time frames. Since 2009 the index has been consolidating in a wide range. Long-term chart pattern is a symmetrical triangle. Over the past six months, ATX index formed a short/medium-term consolidation; another symmetrical triangle. Direction of the breakout from the short-term consolidation range will be important. Breakout above […]
Volatility can move higher in the following months if we see a decisive weekly close above 22 levels. In the last two years CBOE VIX consolidated in a range between 11 and 22. Six year-long downward trend line and the upper boundary of the horizontal consolidation range meet at 22 levels. A decisive break above 22 […]
Strong trends usually emerge from low volatility periods. Low volatility reading on long-term charts is more significant. MSCI Emerging Markets index is getting closer to a strong directional movement after the band width reached multi-decade low level. Index is now in a tight range between 910 and 1,100 levels. Breakout in either direction will result in […]
FEEDER CATTLE had a strong bull market since its long-term breakout in 2010. Though, this uptrend might be over. Feeder Cattle which had a strong rally after breaking out of its 2005-2010 consolidation period, formed a head & shoulder top chart pattern. Both the neckline and the 200-day moving average were between 208-215 area. Price […]
Over the past two decades Copper underperformed Gold during turbulent times in the financial markets. Ratio between Copper and Gold declined sharply during 2000-2003 and 2007-2009 periods. Latest breakdown from the consolidation range can result in further underperformance for Copper. This is a powerful long-term chart with a strong message.
When Japan’s Central Bank announced its QE program in April 2013 it was a big surprise for the public at least according to the way some of the mainstream media announced it. The Independent wrote “Japan tries shock and awe to jump-start stalled economy”. At the time Japan had already elected a new government which […]
Two-decade long horizontal support at 280K on the U.S. weekly jobless claims chart suggest we might be at a “positive extreme” for the U.S. job market. 1989, 2000 and 2006 have proved to be the lowest levels for the weekly jobless claims. Reversals from 280K area resulted in a weak U.S. job market in the […]
This update will cover several markets. There has been significant developments in the first half of January. I’ve given the title MSCI ALL COUNTRIES WORLD INDEX because I think it is one of the most important chart in this update. However, developments in Copper, Palladium and Emerging Markets index are also exciting. Over the past few weeks […]
