Blog: Market Analysis

In the news, U.S. and Chinese officials are “close to finalizing” some parts of a trade agreement after high-level telephone discussions on Friday, the U.S. Trade Representative’s office and China’s Commerce Ministry said.

This seems to bode well for the stock market, with prices already creeping up to test the prior highs.

So will we see new highs? And how bullish are these new highs?

Unless there is a drastic turn of events, I am pretty confident we will see new highs.

However, the question of how sustainable these new highs are are more difficult to answer.

For example, there are other factors to consider, such as whether both sides stick to the agreement and the trade war does not escalate again.

There is also the Trump impeachment which is going on.

And there is also the softening of the US economy, which will also affect markets negatively.

So it is a matter of balancing the positive and negative catalysts, and deciding which are more important in the short-run and long-run.

Unfortunately, I am not seeing many long-term positive catalysts.

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.

Bitcoin Spikes up $2500 in One Day – Any Reasons Why?

Yesterday, we saw an incredible spike in Bitcoin of close to $2500, which is 40+% move.

Even though price has corrected slightly, it is currently still up by about 30% from its recent lows.

Although no one really knows the reason for such a sudden move, many people have attributed it to remarks by the Chinese President, Xi Jinping, who said the country needs to “seize the opportunity” afforded by blockchain technology.

Speaking as part of the 18th collective study of the Political Bureau of the Central Committee on Thursday in Beijing, he said that blockchain technology has a wide array of applications within China, listing topics ranging from financing businesses to mass transit and poverty alleviation.

Although he was talking about Blockchain technology rather than cryptocurrencies, traders seem to have felt that it would still have a positive effect, at least based on what the market is reflecting.

For a technical perspective, the chart is starting to look more bullish medium/long-term, with the breakout of the falling wedge pattern.

Tesla Shares Spike 21% on Earnings Surprise

Tesla recently posted a cash balance increase to $5.3 billion and reported a profit of $1.86 per share, shattering analyst expectations for a loss of 42 cents per share.

Elon Musk promised a 2020 rollout of a cheaper SUV and more self-driving technology to stay ahead of larger rivals rushing into the premium electric vehicle market he created.

Looking at the chart of Tesla, we can see that it traded between the range of $250-$390 for almost 2 years (mid 2017 to mid 2019), before breaking to test a major support level at $180.

From there, it has made a strong recovery, with a whooping 70% gain from its June 2019 bottom.

Now, prices are close to $300, and it looks poised to test the highs of $390 again.

I will continue to hold and look for opportunities to accumulate more again.

Bitcoin – Breakdown from Triangle Pattern!

After months of consolidation, Bitcoin has broken down from its triangle consolidation price pattern.

The interesting thing is that if you look carefully you will see both a symmetrical triangle (neutral) and a descending triangle (bearish), so overall the odds of it breaking down was higher than the odds of it breaking up.

The next support level is around the $6800-$7000 level, so we might see a small pullback, followed by more bearish movement downwards.

Oil Prices Spike After Attack on Saudi Arabia Facilities

Yesterday, oil prices spiked after crude oil facilities located in Saudi Arabia was attacked by terrorists, shutting down up to 5% of global crude oil output.

This was a large 10-20% move in prices, and was an easy trade to ride on the trend and momentum.

There were 3 entry opportunities, 2 of which were flagged out in our “Daily Trading Signals”.

If you are inside our Free Telegram Channel, you would have seen that Crude Oil (WTIUSD) is currently on a weak bull trend, which means that we should be looking for opportunities to go long and ride on the uptrend.

For those subscribed to our premium “Daily Trading Signals”, the precise signal for entry came at 6.00am, when prices made a new 44-day high, and within 3 minutes had spiked to an 83-day high.

There are usually 5-10 trading signals a day, or even more, but the important thing is to trade consistently on the signals and manage your risk well, so that you can take advantage of all these opportunities.

Good luck, and trade well!