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 […]
One of the strongest bull markets in the metal complex is about to end. Tin is highly used in electronics. It is mixed into solder for circuitry in smartphones. Tin is used in everyday life in almost all electronic item. Notebooks, tablets, smartphones… Chart pattern suggests prices are headed for lower levels as we have […]
For those of you who don’t follow twitter, here are some of the important charts that I shared today. Both MSCI ALL COUNTRIES WORLD INDEX and MSCI EMERGING MARKETS INDEX are at critical levels. Multi-year low volatility in equity indices and commodities (metals) suggest we are approaching strong trend periods. MACD rolls over with steep […]
Negative divergence on Palladium chart is a red flag. Divergences are first warning signals of a possible trend reversal. However they should be confirmed by price action – a decisive breakdown. There are few negative signs on this long-term (monthly scale) chart. 1) Price breached its previous high but failed to hold above that level (865). 2) […]
In a downtrend the lower boundary of a trend channel represents the “negative” extreme and the upper boundary the “positive” extreme. Price is expected to rebound from the positive and negative extremes. A downtrend is likely to reverse when the upper boundary is broken on the upside. Likewise an uptrend is likely to reverse when the lower boundary […]
