Trade ideas
Global risk (equity) marketsAfter the fox paus of North Korea, and despite the best efforts of US admin to fuck things up, normalcy is restored.
Normalcy by definition is abnormal though these days. So be on your tows.
Over next few days, week or two, it's the most bullish of bull market all around!
Medium to long term is unknown.
But it's great time to make some money in short term.
For one, there are a lots of shorts out there considering the headwinds out there.
And two, equal measure are willing to buy on dips. So in any impromptu move up, shorts get burned and longs will tag along.
I, for one, am definitely expecting a short and sharp burst up in US equities. And that should see a follow through in other markets.
There is always a fear of Kim Jong Un doing something stupid. But what the world doesn't understand is Kim isn't stupid. Trump is.
As long as General Kelly keeps doing a great job he's been doing so far, any Trump shorts will burn. And that's a great news for risk markets all around.
Make hay while the Sum shines. The Sun won't shine forever though.
I have a feeling when Trump sees Kelly getting some credits he will push on to satisfy his narcissism and dump the risk on trade.
So that should still give us a couple of weeks.
For Indian markets. the high beta and leaders like MARUTI, RELIANCE, HDFCBANK should translate well.
SPX short term trend is WeakOn daily charts 25 day ROC of SPX has entered into negative territory. Which indicates that momentum in the short term is weak which will drag SPX down.
My Take - At this point it is very dangerous to carry long positions in the market as much waited correction is highly probable.
S&P500 : look at Fibonacci zoneSecond week of weakness for the US index. Looking as the first two lines of support coincide with the Fibonacci retracements. Do not open long positions if not in the presence of a reversing candle. If you have a short position open before watching the area in 2280 and then 2200. Good luck
S&P 500 - Breakdown before US Elections & Dec rate hike?Two big events lined up in Dec (Fed rate hike) & Jan (US election results). Huge volatility is expected going forward. With Global Equities near their ATH's, large players would like to book profits & hedge their long positions which implies negative view on global equities in the coming months. Sell on rallies is already going on for last two months. If crucial supports breakdown downmove can accelerate. Risk off sentiment is already evident from Dollar Index (DXY) reaching 100 levels again & sell off in Commodities. Keep a close eye on S&P 500 level (2100) & DAX (10200) if these levels are breached. Nifty will nose dive to 8000-8200 quickly.
S&P 500 Alternate count (Downside view) September onwardsPreviously I was considering only a bullish count in which the Wave 4 was completed but here I have analyzed an alternate count in which I have discussed the downside possibility.
Which count will play out will soon become clear but if the downside plays out then we can see targets around the 1800 mark.
To be more precise the expected targets are -
Target 1 : 1990
Target 2 : 1865
Target 3 : 1788



















