Market Analysis – Page 53 – Synapse Trading

Market Wrap: Facebook, Metaverse, Shiba Inu Coin

Happy Halloween everyone! ??

In this week’s market wrap, we will go through the forex market, stock market, and cryptocurrencies, to review major events and trading signals, and look for upcoming trading opportunities.

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 Market Highlights

The forex market was pretty uneventful, but we still got a few trading signals:

AUD/CHF: breakout from inverse head-and-shoulders pattern
EUR/GBP: breaking new lows
XAG/USD (Silver): Potential short near top of range
AUDJPY: Uptrend resume after BO + PB
CADJPY: Breakout + PB
EURNZD: Break new lows
AUDUSD: Uptrend resumes after BO + PB
CHFJPY: Break new highs!
GBPUSD: Possible Type 2 swing setup (short)

Stock Market Highlights

There was a bit of a disjoint in the stock market, with a few huge stocks pushing the market up, while the bulk of the market is down.

This divergence in market breadth is not a good sign, but as long as the overall main indices are still bullish, I will continue to hold my positions in them, while taking strategic short/medium-term swing trades in individual stocks.

Facebook has decide to change their name to Meta to reflect their new direction of building towards the Metaverse, so FAANG is now MANGA. ?

This gave a good boost to Metaverse-related tokens in the crypto market, unfortunately Facebook stock still seems pretty languid.

Here were the trade signals for last week:

S&P 500, Dow Jones, NASDAQ: break new highs!
Facebook: New swing low
China stocks ETFs: Prices falling from top of range?
TWTR: Breaking out of consolidation?
GOOG: New ATHs!
MRNA: Potential double top breakout
V: Break new lows
Z: Potential range bullish breakout (+5% profit the very next day!)
SBUX: Break H&S neckline (bearish)
F: PB buying opportunity?
TSLA: New ATHs!
UBER: Break prior swing low
NET: New ATHs! (up almost 50% since first buy call)

Crypto Market Highlights

Earlier in the week, we saw multiple breakouts and sharp runs of Alt coins and DeFi tokens, which corrected after running into resistance, then later in the week we saw the same pattern for Metaverse and NFT-related gaming tokens.

If you ride the wave well and rotate accordingly, this actually provides insane returns of easily 50-200% in just one week. Not sure how long it can last, but enjoy it while it lasts.

One of the highlights earlier in the week was Shiba Inu Coin (SHIB), which lay dormant for a long time before breaking out and shooting vertically upwards. ?

Here were the trade signals for last week:

FTM: Multiple long positions, TP hit
ATOM: Falling wedge breakout
AVAX: Small bull flag breakout
EGLD: Triangle pattern breakout
AXS: Bullish pennant breakout
ALGO: Symmetrical triangle breakout
NEAR: Break previous swing high
SOL: New ATHs!
ETH: Testing resistance again
CRO: Inverse H&S breakout!
MATIC: Breakout!
SHIB: Pennant breakout, hit profit target!
LUNA: Breakout, almost ATHs
BTC: Pullback to EMA
FLOW: Break new ATLs!

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! ?

Spencer Li

After trading for 18 years, reading 1500+ books, and mentoring 1000+ traders, I specialise in helping people improve their trading results, by using tested trading strategies, and making better decisions via decision science.

0 Comments/by Spencer Li

How Much Profits Did You Make from the Crypto Crash?

Market Analysis

Recently, there has been a lot of volatility in the Crypto market, with many bullish and bearish factors moving the market, which resulted in a big crash.

In this post, I’m going to do an overview of the crypto and forex market, review some of our recent trades, and discuss the current trading opportunities.

If you want to get all the analysis and charts mentioned in this post ahead of time, don’t forget to join our free telegram channel! https://t.me/synapsetrading

Covid updates

Before we go into the markets, let’s take a quick look at the Covid situation, with a focus on vaccination.

As you can see from this chart, the developed countries have surged ahead with vaccinations, with 50-60% of their population getting at least one dose.

For many of these places, life has almost gone back to normal, and the economic recovery has started.

Unfortunately, this recovery is going to be another K-shape recovery, because if you look at the overall numbers, only 10-15% of the global population has had at least one dose.

My guess is that by Q3 or Q4 this year, travel will resume in some developed countries.

Bitcoin: Shorting the Big Crash!

In early May this year, I started calling for a short on Bitcoin, after seeing the rising wedge pattern which evolved into a head and shoulders pattern.

Bitcoin (BTC/USD) is starting to form a potential reversal pattern. We need to watch out in case this price movement develops. Trade according to the trend! ??

Following up from our Bitcoin (BTC/USD) analysis just a few days ago, we accurately predicted the sharp drop of Bitcoin before it happened!

Congrats to those who followed and shorted! ???

Bitcoin: Buying Opportunity Now?

More recently, I noticed that Bitcoin has bottomed out for the medium-term, so I issued a buy call, which is still valid now.

Following up on our series of uncanny accurate predictions on Bitcoin (BTC/USD), it has now formed a mini double bottom (tweezer bottom), and we could well see a medium-term swing upwards, after the huge sell-down that went into oversold territory.

Though the major trend might still be bearish, this looks like a good low-risk counter-trend buying opportunity to capture a swing up.

Following up on Bitcoin (BTC/USD), this is the 3rd test of support (and it held), which is a sign of bullishness.

Looks like a good time to start accumulating some. ??

Ethereum: Profits from the Crash

Looks like Ethereum (ETH/USD) is in for some correction as well, with the first major support at 3000. Will reevaluate when prices get there.

Following up on Ethereum (ETH/USD), our prediction was also spot-on, and the crash exceeded our expectations and went all the way to TP3 in just one day!

Congrats to those who followed and shorted! ???

Recent Forex Trades: AUD/CHF & EUR/JPY

Looking at the chart of AUD/CHF, it has tried 3 times to break the resistance to new highs, but failed 3 times.

This suggests that there may be more downside, especially if it breaks the bullish trendline.

Following up from AUD/CHF, it has broken to new lows as predicted, and is now trending downwards.

Congrats to those who followed! ???

EUR/JPY remains on a strong uptrend, clearing the recent resistance, and formed a bull flag after pulling back to the 10&20-EMAs.

Following up on EUR/JPY, it has gone up by +276 pips since our last analysis.

Congrats to those who followed! ???

I have come to the end of this market analysis.

Now that I have shared my views on the various markets, do you think it is a good time to start buying cryptocurrencies?

Let me know in the comments below!

P.S. Check out our mentoring programs if you are keen to start your trading journey today!

Spencer Li

After trading for 18 years, reading 1500+ books, and mentoring 1000+ traders, I specialise in helping people improve their trading results, by using tested trading strategies, and making better decisions via decision science.

2 Comments/by Spencer Li

Crypto Updates: 102% Profit on Bitcoin, Ethereum & Dogecoin!

Market Analysis

In the most recent FOMC meeting, the Fed held rates unchanged, which was no surprise, and it meant that this liquidity-driven long-term bull market in stocks and crypto will continue running.

Stocks and crypto are actually pretty correlated, and the biggest danger to the uptrend is if yields start rising.

In this post, I’m going to do an overview of the stock and crypto market, as well as review some of our recent trades.

Covid updates

Before we go into the markets, let’s take a quick look at the Covid situation, with a focus on vaccination.

As you can see from this chart, vaccination rollout globally is progressing slowly, with less than 10% of the world population having at least one vaccine dose.

In addition, numerous variants have been detected globally, such as Britain’s B117 strain, Brazilian P1 variant, South Africa’s B1351 and India’s “double-mutant” variant called B1617.

This does not bode well, and we can see a large disparity between the richer and less affluent countries.

Nevertheless, the financial markets seem to disjointed from the real world, as asset prices continue to climb.

Earnings & Employment (NFP)

If we look at the daily trends, the crypto market, stock market, and even the oil market are all in a strong bull trend.

And with the recent earnings season, a record 87% of S&P 500 companies have beat earnings estimates, and earnings look to be growing by more than 46%, according to Refinitiv.

Credit Suisse’s chief U.S. equity strategist, Jonathan Golub, has raised his forecast for the S&P 500 based on strong earnings.

He wrote, “we are raising our 2021 S&P 500 price target to 4600 from 4300, representing 9.2% upside from current levels, and 22.5% for the year.”

This coming week, we will also see the data from the NFP (non-farm payrolls), which will tell us how good the job market is amidst the US recovery from Covid.

Stock Market Targets Hit

In my previous market analysis posts, I predicted the breakout of the S&P 500 with the first target of around 4120 and the second target of 4215.

On 13 April 2021, it hit the first target of 4120, and in the Telegram screenshot above, I said that it would continue to the next price target of 4215.

Just a few days ago, we saw that exact target being hit. Congrats! ???

Bitcoin: 24% profit in 7 days!

Bitcoin was very exciting because we traded it downwards, and then upwards, and both trades were very proftable!

We spotted this rising wedge in Bitcoin, which was bearish, so we took a short position, and from here we saw a 25% correction from its all-time highs.

Following that, I pinpointed a rebound for Bitcoin, with uncanny precision.

Within just 2 days, we saw a sharp rebound of 17% from the lows, but we were still not done.

Finally, after 7 days, we took profit at the resistance level, netting a 24% profit in 7 days. Ka-ching! ???

Dogecoin: 38% profit in 5 days!

Dogecoin admittedly was a more volatile creature, so we had to be more careful in finding trading opportunities for this.

Finally, we spotted a huge pin bar (bullish hammer candle), and this was the perfect opportunity for a long trade.

From there, it went up 38% in the next 5 days, and it still looks like it can continue going up, so we are still holding on to this. ??

Ethereum: 50% Profit in 13 days!

I mentioned in my previous market analysis post that Ethereum is even more bullish than Bitcoin based on the chart, and now you can see why.

In just 13 days after hitting the support level (great place to buy), we netted a profit of 50%, and the price still looks to be heading higher.

At this point, I won’t be too greedy and will take most profits and wait for the next pullback to enter again.

Here’s some feedback from one of my new students, and I’m glad to see they are profiting from the Crypto bull run as well.

I have come to the end of this market analysis.

Now that I have shared my views on the various markets, do you think the markets will continue going up, or will it be a case of “sell in May and go away”?

Let me know in the comments below!

Spencer Li

After trading for 18 years, reading 1500+ books, and mentoring 1000+ traders, I specialise in helping people improve their trading results, by using tested trading strategies, and making better decisions via decision science.

0 Comments/by Spencer Li

Stock Market Surges As Predicted – What to Buy Now?

Market Analysis

As countries around the world roll out their vaccine plans, we can see different industries and different countries recovering at different rates.

However, only a small percentage (about 5%) of the global population is vaccinated, so it might take a while before we start to see the results of the vaccines kick in to reduce new Covid cases.

If you look at the graph of new cases, it is still on the rise.

Given such a scenario, how does this affect the financial markets, and what are some of the investment opportunities we can look at?

Stock Market Surge

On 31 March 2021, I shared this important snippet in the public Telegram channel, because I felt that S&P 500 was going to have a breakout.

“Following up on the S&P 500, it is still within the range, but now the odds are much higher that it will continue going higher.

If I had to guess, I would estimate 70% bullish and 30% bearish.

This means it’s a good low-risk opportunity to add long positions, with a SL just below the recent swing low (around 3840).

Shared this with my students a few days ago, will tonight be the night the S&P 500 makes a new high?”

That very night, stocks broke to a new high, and has been steadily heading up for the past 1-2 weeks.

“Following up on our last post, the market is surging up as predicted. Congrats to those who followed! ???“

As of Friday last night (9 April 2021), the S&P 500 has hit our first price target of 4125, giving us close to 4% gain so far.

We have taken half profits, and there might be small pullback where we can add positions before gunning for the next price target.

Not Much Upside for Oil Markets

On 27 March 2021, I shared a chart on the long-term outlook of the Crude Oil market, and I felt that that most of the post-Covid recovery has been priced into oil, and since it won’t be going up much, I suggested taking a long-term short position on it.

“Looking at the long-term chart of Crude Oil, we saw it bottom around April last year, before recovering all the way to previous highs in a 2-legged move.

Something interesting to note is that the 2 legs of the 2-legged move are exactly the same length.

Now that it has reached the pre-Covid highs, I do not see much more upside for Crude Oil.”

“Following up on Crude Oil, it has started turning down as predicted. Possible short entry for the next leg down.”

Since then, prices have started to turn down a little, and I will continue to hold my short positions for another possible leg of price movement downwards.

Will USD Become Bullish?

On 27 March 2021, I noticed that the USD was picking up strength, which was surprising, considering how much money the US has been printing.

My guess is that currently, the US is recovering faster from Covid as compared to many of the less developed countries.

“Looking at the US Dollar Index (DXY), it seems like after a multi-year downtrend, the USD is picking up strength.

It has broke the long-term bearish trendline, formed a small double bottom, and is now challenging the 200-EMA.”

Looking at the larger chart of the US Dollar Index (DXY), you can see that price has formed a double bottom, however the size of this pattern is not that convincing since it is comparatively small.

Price is now fighting in the middle of the EMAs, and we will need to see if it can emerge victorious and stay above all the EMAs.

Relative Strength of Forex Pairs

Let’s take a look at the other currencies and their relative strength.

This shows the current ranking of different currencies, from strongest to weakest.

“Stocks continue to surge as predicted, and because the JPY is weakening, all pairs of /JPY are very bullish too.”

This shows the trends of the different currency pairs, stocks indices, commodities and bonds.

From these 2 tables, we can see that JPY & GPY are bearish, while USD & CHF are bullish.

Crypto: Bitcoin & Ethereum

Cryptocurrencies are really heating up right now, and I’ll be focusing on the 2 major ones – Bitcoin (BTC/USD) and Ethereum (ETH/USD).

Looking at the chart of Bitcoin (BTC/USD), it is still staying nicely within the uptrend channel, with a nice ascending triangle building up for more bullish pressure.

It is very likely that it will break new highs this weekend.

Looking at the chart of Ethereum (ETH/USD), it is possibly even more bullish than Bitcoin, after a breakout of a ascending triangle, a pullback to test the breakout, which also formed a bull flag.

That is already a confluence of 3 bullish factors.

Needless to say, I will be holding on to this as well.

Market Summary

In this post, I have covered many markets, and the key things to note are:

Bullishness of the stock market
Long-term bearishness of Crude Oil
Potential bullish reversal of the USD
Bearishness of JPY & GPY
Bullishness of USD & CHF
Bullishness of cryptocurrencies

Now that I have shared my views on the various markets, what do you think is the best investment at this point of time?

Let me know in the comments below!

Spencer Li

After trading for 18 years, reading 1500+ books, and mentoring 1000+ traders, I specialise in helping people improve their trading results, by using tested trading strategies, and making better decisions via decision science.

0 Comments/by Spencer Li

Is the Stock Market Heading for a Correction? (While Bitcoin Surges…)

Market Analysis

is the market heading for a correction thumbnail

After the sharp run-up in stocks from last year’s March lows, some people are starting to wonder if the market has got a bit too bubbly.

In this post, we will compare the different stock indices, as well as some other products, to see if there are any good opportunities.

The Meteoric Rise of Bitcoin

When placed on the same scale, the epic 700+% returns on Bitcoin (BTC/USD) dwarfs everything else, and has also provided some of the best returns for my portfolio last year.

Looking at its strong trend, it does look like there are a few more legs for it to go, so I will hold onto it for now.

To see the rest of the products, I will now remove Bitcoin from this comparison.

Overview of Various Markets

The top 3 you see are the 3 indices of the US stock market, and the one in candles is the S&P 500. The other 2 are the Dow Jones Index and the NASDAQ.

The Nasdaq had the sharpest recovery at the start, but the other 2 recently caught up, especially in the last few weeks where the NASDAQ corrected sharply.

So in terms of percentage recovery, all 3 indices are roughly at the same level.

Next if we look at the line in dark purple (2801), which is one of the China Stock ETFs which I invest in, it had a good run, and just earlier this year it was on par with the NASDAQ.

However, in recent weeks, it has corrected sharply and is now below the 3 US stock indices.

The STI Index (Singapore market) was pretty much lackluster last year, but has picked up in recent months, making it one of the top performing stock markets this year.

The last line on the chart is Gold (one of the Gold ETFs to be specific), and it seemed to have hit its recent peak in August last year.

Will Rising Rates Kill the Stock Market?

Historically, rising yields have led to recessions, but the lag time could be years, so it’s not like we won’t be able to see it coming as it happens.

Looking at the charts of bond prices (which are an inverse of interest rates), we can see that it peaked around the same time the stock market bottomed (March 2020), and in recent weeks has been dropping faster.

This in itself it not necessarily a bearish indication for stocks, because it is more of a sign of potential rising inflation, but as long as inflation remains low, then it may not necessarily be bad for stock prices.

Which means the best way is still to check out the charts of the stock indices.

Chart Analysis of S&P 500

In summary, the stock indices are currently trading within a sideways range after a long run-up, so it won’t be surprising if there is some medium-term correction before the trend continues.

Stay tuned for more real-time market updates in our Telegram channel:
?? https://t.me/synapsetrading

Spencer Li

After trading for 18 years, reading 1500+ books, and mentoring 1000+ traders, I specialise in helping people improve their trading results, by using tested trading strategies, and making better decisions via decision science.

0 Comments/by Spencer Li

Market Wrap: Facebook, Metaverse, Shiba Inu Coin

Forex Market Highlights

Stock Market Highlights

Crypto Market Highlights

How Much Profits Did You Make from the Crypto Crash?

Covid updates

Bitcoin: Shorting the Big Crash!

Bitcoin: Buying Opportunity Now?

Ethereum: Profits from the Crash

Recent Forex Trades: AUD/CHF & EUR/JPY

Crypto Updates: 102% Profit on Bitcoin, Ethereum & Dogecoin!

Covid updates

Earnings & Employment (NFP)

Stock Market Targets Hit

Bitcoin: 24% profit in 7 days!

Dogecoin: 38% profit in 5 days!

Ethereum: 50% Profit in 13 days!

Stock Market Surges As Predicted – What to Buy Now?

Stock Market Surge

Not Much Upside for Oil Markets

Will USD Become Bullish?

Relative Strength of Forex Pairs

Crypto: Bitcoin & Ethereum

Market Summary

Is the Stock Market Heading for a Correction? (While Bitcoin Surges…)

The Meteoric Rise of Bitcoin

Overview of Various Markets

Will Rising Rates Kill the Stock Market?

Chart Analysis of S&P 500

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