Month: June 2020

Scandinavian Capital Markets

Identifying the Next Major U.S. Dollar Index Level

Scand.Ex is pleased to present the next video with trading analysis by Jamie Saettele, our Chief Technical Analyst.

Scandinavian Capital Markets

Market Update – June 12

Finally something else besides ‘melt-up’. Index action in 2020 is basically straight up or straight down. Once the market picks a direction, it goes quickly in that direction without much of a counter reaction. In ES, pay attention to 2976 for a bounce. If it does bounce, then note 3065 for resistance. IF a larger reaction materializes (which would be a change) then 3137 should provide resistance.

Scandinavian Capital Markets

Good Trade, Bad Trade: Quantifying the Shape of Trades

Every trade can be quantified in the degree of their being Good Trades or Bad Trades. Read this article by our guest blogger Abe Cofnas to understand how to evaluate your trade.

Scandinavian Capital Markets

Greenback Gains Against Comdolls As Risk Sentiment Dampens

The US dollar advanced against risk-sensitive currencies including the Australian dollar, New Zealand dollar and Canadian dollar in early trading on Thursday. The move came after a gloomy economic forecast from the Fed and reports of rising coronavirus cases in the US.

Scandinavian Capital Markets

Market Update – June 11

QQQ is running into lines that extend off of highs over the last 9 years. A close-up view is below. The red line extends off of the December 2014 and March 2018 highs. That line was resistance for the August 2018 and February tops. It was reached today. The line that originates at the February 2011 high is slightly higher…about 251.70 in QQQ.

Scandinavian Capital Markets

USDCAD Important Support Reached

Scand.Ex is pleased to present the next video with trading analysis by Jamie Saettele, our Chief Technical Analyst.

Scandinavian Capital Markets

Market Update – June 10

Stephen Roach, former Morgan Stanley economist and currently employed by Yale, published A Crash in the Dollar Is Coming yesterday. He may be correct but these types of articles are usually published at near term price extremes (in this case a USD low). Technically, this is the perfect spot (December low) for a bounce. Also, DXY made a slight new low today but EURUSD did not make a new high. This non-confirmation is typical at turns. Back to 98.27 or so wouldn’t be a surprise. Finally, consider the extreme short term sentiment readings (DSI readings from Monday) in front of FOMC on Wednesday. The narrative heading into FOMC is that there is no limit to the Fed’s balance sheet. What else can they say that would ‘surprise’ markets in that direction? Risk for tomorrow seems like a classic ‘sell the news’ event.

Scandinavian Capital Markets

Gold Advances Ahead of FOMC Meeting

Gold edged higher in early Tuesday trading, lifted by a weaker US dollar as investors eye the Federal Reserve meeting set to conclude on Wednesday. Meanwhile, inceased risk appetite and robust equity markets threaten to keep a lid on the yellow metal’s price.

Scandinavian Capital Markets

Market Update – June 9

USDJPY plunged today. Price could bounce from the lower parallel of the short term fork near 108.00. Proposed resistance is the year open and center line at 108.75-109.00. Seasonal tendencies have turned down and the rally from the May low is in 3 waves. The implication is that the rally is complete as a correction and that price is headed for a break of the May low of 105.99.

Scandinavian Capital Markets

Market Update – June 8

TLT reached the noted support line on Friday and reversed higher. The importance of this line cannot be overstated. This is the same line that was resistance for major tops since 2012. Another leg higher from here is possible but I don’t have a strong opinion on whether or not that happens. Favor the upside as long as Friday’s low holds. 162 is initial resistance.