Last week, as the market continued to edge higher on weakness, we started initiating large short positions on stocks, crypto and REITs.

This was due to many bearish overbought technical indicators, as well as bearish price patterns like bear flags or head and shoulders patterns.

Markets were mostly flat the whole week until Friday, when stocks plummeted after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank won’t back off in its fight against rapid inflation.

Now our shorts are greatly in the money, and we will monitor our positions to see if the decline continues next week.

This could potentially be the biggest trade of the year, if markets continue to fall.

Stay tuned for more real-time updates in our “Daily Trading Signals” Telegram channel!

[Photo: Vernice, Italy – See my full travel photo log!]

For our weekly market wrap, we go through some of the trade calls and analysis from last week, which gives us valuable insights for the week ahead.

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

• Forex, CFDs, commodities, bonds
• US stocks, ETFs, global stock indices
• Cryptocurrencies, crypto indices

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Click here to receive all these signals in real-time for only $67 a month! You will get several signals a day, and even taking just 1 trade the whole month can easily cover the fee, so what are you waiting for?

Portfolio Highlights

Portfolio updates:

Mainly riding the bearish momentum now, and seeing if it leads to a resumption of the bear trend.

Forex & Commodities Market Highlights

With most risk assets heading down again, USD has risen to the top as a safe haven.

Looking at the weekly chart of the EURUSD, you can see that we started calling for shorts since 1.14, and now prices have declined more than 12%.

EURUSD has now broken the crucial 1.000 price level again, and is likely to continue heading downwards.

We can look for more pullback opportunities to short.

GBPCHF is bearish on the daily chart, but having bullish momentum on the H1 (hourly) chart.

Watch and see if there is any price rejection at the resistance zone here to initiate a short trade.

Following up on the H1 chart of GBPCHF, the trade has triggered and is starting to head down.

Another way to trade the CHF strength would be to short the NZDCHF using a tight SL.

The NZDCHF has broken below resistance, and formed a bear flag.

Besides all the USD trading positions we have been posting the past few weeks, you can also consider looking at the CHF.

The CHFJPY is breaking out of a small rectangle pullback, and we can enter early using a tight SL.

Previously, I thought the breaking of support would be bearish for Crude Oil (WTIUSD), but after seeing the tweezer bottom candles and the bullish pin bar, I think it is more likely that was a false breakout and prices will now head higher.

This is why I closed all my short positions on commodities yesterday.

Also, looking at the daily news on water/energy shortage and rising food prices, I think it would be better to be neutral or long on commodity prices.

Power prices in Germany surging

Stock & Bond Market Highlights

Following up on the NASDAQ 100 (US100), I have been accumulating shorts, and prices have indeed fallen, giving me some decent profits.

Now prices have fallen to another critical point, and the breakout on either side will determine the trend for the next few months.

So to be safe, I will be taking some profits, to stay nimble in case I need to switch to long instead.

We have hit the top of the trendline for S&P 500 (US500), and the RSI oscillator is showing an overbought signal.

There might be some correction soon.

Crypto Market Highlights

Bitcoin (BTCUSD) looks like it might finally have broken out of the bear flag pattern, have added more short positions to this.

Monthly and annual performance (%) of Bitcoin and Ethereum over the years.

Click here to receive all these signals in real-time for only $67 a month! You will get several signals a day, and even taking just 1 trade the whole month can easily cover the fee, so what are you waiting for?

Good luck, and may next week bring more excellent profits!

The latest CPI data showed that inflation was almost flat for the month of July, which suggested the possibility that inflation had peaked, and might be turning down soon. But is this scenario likely?

Since there are so many factors that affect inflation, it is really impossible to tell at this point, so a simple way is to wait for the next 2-3 months and see if the CPI continues to make new lows, or proceeds to make new highs.

Because long-term trends like these take months or years to play out, so trying to predict the trend using 1 month of data is not very useful.

If we look at risk assets like stocks and crypto, they have all rallied a lot since the lows, so I’m not sure how much more they can go from these levels even if the Fed decides to keep the current interest rate levels at status quo.

This is because the impact of increased interest rates are still gradually taking effect throughout the economy, and might lead to further bearish impact. And the Fed is also unlikely to start cutting rates so soon either.

At this point I am more inclined to look for potential shorting opportunities in the stock market, but I will not pull the trigger until the trade signals are given.

Stay tuned!

[Photo: Milan, Italy – See my full travel photo log!]

For our weekly market wrap, we go through some of the trade calls and analysis from last week, which gives us valuable insights for the week ahead.

We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:

• Forex, CFDs, commodities, bonds
• US stocks, ETFs, global stock indices
• Cryptocurrencies, crypto indices

By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.

Click here to receive all these signals in real-time for only $67 a month! You will get several signals a day, and even taking just 1 trade the whole month can easily cover the fee, so what are you waiting for?

Forex & Commodities Market Highlights

On the forex front, the USD has weakened considerably in recent weeks, which is why I hedged my USD exposure by diversifying in these other currencies.

This AUDUSD trade is almost 400 pips profit! ????

This NZDUSD trade is now 300+ pips profit! ????

This USDCHF trade is now 150+ pips profit in the money! ????

Keeping an eye on the Clean Energy ETF (ICLN) weekly chart as a potential long-term investment, since the US is looking to reduce its reliance on oil.

Stock & Bond Market Highlights

Not much change on the NASDAQ 100 (US100), so we need to exercise patience and not act rashly if the market is not moving much. If price start breaking lower, we can get ready to short.

https://awealthofcommonsense.com/2022/08/the-michael-scott-economy/

https://www.wsj.com/articles/feds-inflation-battle-is-far-from-won-11660144110

https://www.cnbc.com/2022/08/08/bed-bath-beyond-shares-jump-30percent-as-message-board-mentions-soar.html

Crypto Market Highlights

Looking at Ethereum (ETHUSD), the short and medium term trend is actually pretty bullish, with prices above the 20 and 50 EMA.

We can also see where the 20 and 50 EMA crossed over in the red circle.

As long as the momentum is bullish, I would avoid going short, and either stay out, or take small swing trades (buying on pullbacks and selling after small moves).

Do note that prices are still below the 200-EMA, hence long term trend is still bearish, and I have not switched into aggressive accumulation mode.

https://www.forbes.com/sites/billybambrough/2022/08/07/opening-the-floodgates-crypto-braced-for-a-10-trillion-earthquake-as-the-price-of-bitcoin-ethereum-bnb-xrp-solana-cardano-and-dogecoin-swing/

? CeFi degeneracy knows no bounds. Here's a case study into Hodlnaut – a centralized yield platform – and why I believe they have both lied to & misrepresented stablecoin staking risks to customers. These websites are not as trustworthy as you may think. (1/25)

— FatMan (@FatManTerra) June 26, 2022

Click here to receive all these signals in real-time for only $67 a month! You will get several signals a day, and even taking just 1 trade the whole month can easily cover the fee, so what are you waiting for?

Good luck, and may next week bring more excellent profits!