What is sectior rotation?
Sector rotation is an active investing strategy that involves moving money between stock sectors to keep it in the best-performing sectors. Investors and traders use this strategy in anticipation of the next stage of the economic cycle, when most industries and their companies will either thrive or struggle….AI Overview
July 12 (Reuters) – A look at the day ahead in U.S. and global markets from Mike Dolan
A violent rotation from Big Tech into small cap stocks followed the surprisingly benign June U.S. inflation report, while U.S. borrowing rates and the dollar plunged and Japan’s yen stole the currency show.
EURUSD DAILY CHART – POWER OF 50
1.0852 breakout targets 1.0916 next as long as it stays above this level.
It is why I csaid earlier 1.0850 sets the bias.
Only below 1.0850 would postppne the threat
The high so far has been 1.0899, only GBPUSDD has so far extended its high..
Above 1.0916 would expose potential for 1.10
A market view
Markets are saying what Powell can’t: Morning Brief
After this latest, reassuring inflation reading, markets were pricing in an 84% chance that the Fed will begin cutting rates at its September meeting, up from 73% a day prior, according to CME FedWatch.
“A September rate cut should be a done deal at this point,” said Lazard chief market strategist Ron Temple.
USDX DAILY CHART – KEY SUPPORT ON THE RADAR
USDX IN A DOWNTREND THAT STILL NEEDS A 103.93 BREAK TO FULLY CONFIRM
SO FAR, THE BREAK OF 104.27 HAS NOT FOLLOWED THROUGH, BELOW IT IS NEEDED FOR A SERIOUS RUN AT 103.93
NOTE, WITH EURUSD 57.6% OF THE INDEX, USDX WOULD NEED CONFIRMATION FROM A BREAK OF YESTERDAY’S 1.0899 HIGH (YET TO OCCUR)
EURDLR 108.92
Puppy is likely reflecting political betting – but I could be wrong
On the euro the betting would be on lagarde’s intentions and
On the USD the betting would likely be on biden (and not so much on Jerome anymore atm)
I am trying to take my bead off the US bond yields (as Jay points out) and USDCHF
GBPUSD 4 HOUR – MARCHING FOR 1.30?
GBPUSD so far extending its high by one pip tp the “50” level (1.2950)
Should 1.2950 become support, expect a run towards 1.30
Major technical target remains at 1.3141 following the break of 1.2893
Downside contained as long as it trades above 1,29
Note GBP strength on its crosses as well
USDJPY DAILY CHART – TRENDLINE BROKEN BUT…
Was it intervention or some hedge fund exiting short JPY carry trades when US yields fell after CPI?
All that matters is the market could not absorb the selling.
Key daily trendline was broken but without a close below it.
On the upside, the BoJ will not want to see it back above 160.25
In any case, the market will assune the high is in for now, but would need to get through 167.41 to put 155 in play.
Look for choppy trading but a limited upside while below 160.25.
EURUSD 30 MINUTE CHART – MY MOTTO
My motto: When logic says one thing and The Amazing Trader says the opposite, don’t ignore what THE AMAZING TRADER is saying
What’s it saying
In this case, falling blue lines are saying the intra-day risk had shifted to the downside. Those looking to buy the dip are trading the last episode when a new one had begun. Note I said intra-day as the dollar is still down on the day except vs the CAD,
Similar patterns are in other currencies as well after the CPI dollar dive ran out of steam.
GBPCHF 4H
Kind of a strange choice of instrument for me – Yes, it has never crossed my mind to play with this cross 😀
But one of our new members brought it up to my attention, so I added some of my own recipe to it and Voila…
Robinson saw it on time and together we are now bringing it up to your attention.
Supports at : 1.15350 , 1.15100 & 1.14950
Resistances at : 1.15550 , 1.15750 & 1.16200
We should start paying attention to it….
Thank you Robinson for this little gem 😀
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