Tighter monetary conditions in the U.S. have led to a stronger dollar, capital outflows from emerging markets and disinflation. This is pretty much confirmed with recent downtick on inflation data. The U.S. is now getting a triple shot of tightening in the form of higher rates, reduced money supply and a stronger dollar. At this rate, we may be in a recession sometime next year unless the Fed reverses course.
This week is a holiday-week in US, will likely be one of the lowest volume weeks in a year.
Cable stays rangebound ahead of EU summit and FED rate hike in December. Daily range to trade: 1.3 - 1.33.
In this post I'll try to summarize my approach to selecting and entering into options trades. It should look like a step-by-step guide, as detailed as possible.
Two weeks ago I made an assumption that Bitcoin has formed a classic bubble nad that it'll go through all stages, mandatory for every financial bubble. So far, the situation is in line with the template: the market have passed "return to normal" phase and now is right in the middle of "fear" phase.
Volatility buy for GOLD ETF trade description in this post. And some general thoughts on the options trading.
Do you like asset bubbles? I adore it. It's just like Roller-coaster for adults :)
We are at the very edge of BTC cycle expansion, at the "return to normal" phase.
Ask yourself: are there any projects in blockchain space that are still not recognised by the market? Projects that have have the potential of ETH in 2015 or Bitcoin at $250?
We can see that on Monthly timeframe MACD bear divergence persists, signaling the bear reversal. During 2017 market is consolidating in the 100-103 range. I would expect USDX to break the range downside, through the 100 support.
However during this week USDX is moving up, to test upper bounds of the range at 101.7. I would expect to see consolidation and then reversal from these levels
With "Trump, who became real president after bombig Syria" and some positive-to-neutral earnings figures from top 500 US corporations I would expect Animal spirits to dominate once again and provide inspiration for reaching new all-time highs.
I'm leaving my monthly view with no changes: SP500 is heading to new record high at 2400-2500 in the coming months. And there is no reasons to be bearish at the moment.
I expect BTC and ETH to grow this week. And overall cryptospace looks extremely promising.