Trading Signals & Education

2023-04-13 11:05:55 US: Initial Jobless Claims: today at 12:30 GMT !

What Are Jobless Claims?
The Initial Jobless Claims report is a weekly economic indicator that measures the number of people who filed for unemployment benefits for the first time during the previous week.
This report is released every Thursday by the U.S. Department of Labor and is considered a critical economic indicator for investors.

Why it's important for traders?
Investors and daily traders use the Initial Jobless Claims report to gauge the health of the labor market and the overall economy.
A lower number of jobless claims suggests that the economy is strong, and businesses are hiring, which is generally positive for investors.
Conversely, a higher number of jobless claims indicates that the economy may be weakening, and businesses may be cutting jobs, which is typically negative for investors.

Additionally, the Initial Jobless Claims report provides insight into consumer spending and the overall health of the economy. When people lose their jobs, they have less money to spend, which can lead to a decline in consumer spending. This decline in consumer spending can negatively impact companies that rely on consumer spending for their revenue.

Furthermore, the Initial Jobless Claims report is closely monitored by the Federal Reserve as it can provide valuable information regarding inflation and interest rates. If the jobless claims report suggests that the economy is weakening, the Federal Reserve may be more inclined to lower interest rates to stimulate economic growth.

In conclusion
The Initial Jobless Claims report is an important economic indicator for investors as it provides insight into the health of the labor market, consumer spending, and the overall economy. Investors should pay close attention to this report as it can impact their investment decisions and provide valuable information regarding market trends.

Trade Safe! Open / Comment

2023-04-03 10:04:31 Top events of the week (GMT Time)

Today
Australia: Retail Sales (MoM): 01:30
UK: Manufacturing PMI (Mar): 08:30
US: ISM Manufacturing PMI (Mar): 14:00

Tuesday
Australia: RBA Interest Rate Decision (Apr): 04:30
US: JOLTs Job Openings (Feb) 14:00
Dividend: Gap (GPS)
Dividend: Cisco (CSCO)

Wednesday
UK: Services PMI (Mar): 08:30
US: ADP Nonfarm Employment Change (Mar): 12:15
US: ISM Non-Manufacturing PMI (Mar): 14:00
US: Crude Oil Inventories:14:30
Dividend: Mastercard (MA)
Dividend: Sysco (SYY)
Dividend: American Express (AXP)
Dividend: Marvell (MRVL)
Dividend: JPMorgan (JPM)

Thursday
UK: Construction PMI (Mar): 08:30
US: Initial Jobless Claims: 12:30
Canada: Employment Change (Mar): 12:30
Canada: Ivey PMI (Mar): 14:00
Dividend: Verizon (VZ)

Friday
US: Nonfarm Payrolls (Mar): 12:30
US: Unemployment Rate (Mar): 12:30 Open / Comment

2023-03-27 11:13:54 Top events of the week (GMT Time)

Today
UK: BoE Gov Bailey Speaks: 17:00
Earning report: Carnival Corp (CCL)

Tuesday
Australia: Retail Sales (MoM) (Feb): 00:30
US: CB Consumer Confidence (Mar): 14:00
Earning report: Micron (MU)
Dividend: Ralph Lauren A (RL)

Wednesday
US: Pending Home Sales (MoM) (Feb): 14:00
US: Crude Oil Inventories: 14:30
Earning report: Dollarama (DOL)
Earning report: Next (NXT)

Thursday
US: GDP: 12:30
US: Initial Jobless Claims: 12:30

Friday
UK: GDP: 06:00
Eurozone: CPI: 09:30
US: Core Durable Goods Orders (MoM) (Feb): 12:30
GDP (MoM) (Jan): 12:301 Open / Comment

2023-03-21 12:37:37 Bank of America (BAC): Long term
In the long run, it's still one of the best investments.
Its net charge-off rate rose to 1.61% from 1.50% in January and from 1.26% a year ago. By comparison, the metric was 2.55% in February 2020. Open / Comment

2023-03-16 12:42:31 Credit Suisse: A real roller-coaster!

Panic has gripped global banking stocks last night for the second time in a week: the wave of fear prompted by the collapse of California’s Silicon Valley Bank (SVB) has been followed by fresh jitters over the stability of major European bank Credit Suisse.

What happened?
Yesterday, the stocks of the Swiss bank experienced a dramatic decline of over 30%, hitting an all-time low of approximately 1.56 Swiss francs (£1.40) per share.
This occurred after the Saudi National Bank (SNB), the bank's primary shareholder, stated that it would not offer additional funding due to regulations that restrict its ownership to 10% or less, which it has already reached with a current stake of 9.9%.

How big this bank is?
Credit Suisse is a Swiss multinational investment bank and financial services company headquartered in Zurich, Switzerland. It is one of the largest banks in the world, with operations in over 50 countries and a significant presence in Europe, the Americas, and Asia.

Not the first time that the bank has made bad headlines
Despite its reputation for stability and strength, Credit Suisse has been in the news recently due to a series of controversies and scandals that have rocked the bank and caused significant damage to its reputation.

One of the most significant issues that have plagued Credit Suisse in recent years is the fallout from the 2019 spying scandal. In that year, it was revealed that the bank had hired private investigators to follow one of its former executives, Iqbal Khan, who had left to join rival bank UBS. The incident sparked a major investigation by Swiss regulators, which ultimately resulted in Credit Suisse being fined CHF 30 million ($33 million) for its actions. The scandal also led to the departure of several senior executives, including CEO Tidjane Thiam.

Should we be worried?
Today the situation looks better this morning.
Credit Suisse experienced a surge of approximately 18% in its shares, thanks to a lifeline provided by the Swiss central bank to restore investor confidence.
This helped to recover some of the losses suffered the previous day, which had reduced its market value by 25%.
Credit Suisse's announcement of a $54-billion loan from the Swiss National Bank helped to stabilize the financial markets in Asia on Thursday and resulted in a modest rally in European equities.
However, analysts caution that this truce may be short-lived.
JPMorgan analysts believe that the loan from the SNB would not be sufficient to address investor concerns, and the current situation is no longer sustainable, which makes a takeover of Credit Suisse the most probable outcome.

Recent collapses of two regional U.S. banks have raised concerns among investors and bank customers about the financial system's resilience in the face of increasing global interest rates.

Trade safe! Open / Comment

2023-03-14 12:13:22 Can Bitcoin Reach $30,000? Thanks SVB collapse, it is possible

Bitcoin (BTC) has successfully recovered from last week's losses, which were triggered by failing banks in the US that caused a deep in major US-based stablecoins.
However, the Federal Reserve's assurance that affected investors would be compensated instilled confidence and catalysed a recovery rally.

During the banks' collapse, panic spread throughout the markets, leading holders to swap affected stablecoins for safer alternatives such as USDT, BUSD, and TUSD. Some market participants also creatively swapped their USDC for BTC or bought USDC at a discount, hoping it would return to the peg.

Currently, the Bitcoin price has overcome the $24,000 hurdle and is hovering around $24,333.

If Bitcoin breaks the resistance line (25,600), it could trigger a rally to the next major level, at $28,000, followed by the next psychological level at $30,000.

Trade safe! Open / Comment

2023-03-10 14:08:14 Market review
European markets experience significant declines
the European stock markets traded with significant declines as anxiety over the highly-anticipated U.S. jobs report and the weakening banking sector overshadowed the positive news of better-than-expected growth data from the U.K.

DAX index in Germany traded 1.7% lower, the CAC 40 in France dipped 1.9% and the FTSE 100 in the U.K. fell 1.6%.

As the U.S.Nonfarm payrolls release approaches, investors are exhibiting caution, particularly since Powell has cited this metric as a crucial factor in shaping the Fed's perspective.
Despite an anticipated slowdown in nonfarm payrolls growth to 205,000 from January's exceptional 517,000, the chance of another positive outcome remains plausible, considering Powell's hawkish stance.
The market is currently predicting a 0.5% interest rate hike during the Fed's March, a significant acceleration from the 0.25% increase at the start of February.

Crude oil prices experienced a decline and are on track for their most substantial weekly drop in five weeks, fuelled by apprehensions that significant interest rate hikes in the United States will impede economic growth and, as a result, reduce demand for oil in the world's most extensive consumer market.

Trade safe! Open / Comment

2023-03-03 14:33:34 Canada: interest rate hikes, the end?

The Parliamentary Budget Office expects that the Bank of Canada will cease increasing interest rates, while also predicting a 1% expansion in the economy for 2023.

One year after the Bank of Canada's aggressive rate hike cycle began, economists widely expect the central bank will stick to its plan of holding its key interest rate steady at its next scheduled announcement.

The most recent inflation data suggests the country is inching closer to normal price growth. Canada's annual inflation rate slowed to 5.9% in January, down from the peak of 8.1% reached in the summer.

The statement can strengthen the US dollar vs the Canadian dollar in the medium - long term.

Trade safe! Open / Comment

2023-03-01 14:14:23 Bank of America (BAC): Profit (Take-profit): 13% + another entry point if you missed the previous one! Open / Comment

2023-02-28 15:25:48 Technical Analysis: For Beginners

Technical analysis is the study of market trends, patterns, and price movements using charts and indicators. It is a popular method used by traders and investors to make decisions about buying and selling assets, including stocks, cryptocurrencies, commodities, and forex.

If you are a beginner interested in learning technical analysis, this article will provide you with a basic understanding of the concepts and tools involved.

What Is Technical Analysis?
Technical analysis is the process of analyzing historical price and volume data to identify patterns and trends in the market. It is based on the idea that market trends, patterns, and cycles repeat themselves over time. Therefore, by studying past price and volume data, traders and investors can make informed decisions about future price movements.

Technical analysis uses charts to visualize price and volume data. These charts can be used to identify patterns and trends, such as support and resistance levels, trend lines, and chart patterns. Traders and investors can then use this information to make buy and sell decisions.

Tools Used in Technical Analysis

There are several tools used in technical analysis, including:

Moving Averages: Moving averages are used to smooth out the price data and identify trends. A moving average is calculated by taking the average price of an asset over a specific period, such as 10, 20, or 50 days.

Support and Resistance Levels: Support and resistance levels are areas on a chart where the price of an asset tends to stall or reverse. Support levels are areas where the price tends to bounce back up, while resistance levels are areas where the price tends to bounce back down.

Trend Lines: Trend lines are used to identify the direction of the trend. An uptrend is defined by a series of higher highs and higher lows, while a downtrend is defined by a series of lower highs and lower lows.

Chart Patterns: Chart patterns are specific formations on a chart that indicate a potential trend reversal or continuation. Examples of chart patterns include head and shoulders, double tops, and triangles.

Indicators: Indicators are mathematical calculations based on price and volume data. They are used to identify overbought and oversold conditions and to generate buy and sell signals. Examples of indicators include the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD).

Using Technical Analysis
To use technical analysis, traders and investors start by selecting an asset and analyzing its price and volume data using charts and tools. They then look for patterns and trends that indicate a potential buy or sell signal.

For example, a trader might use a moving average to identify the direction of the trend and then look for support and resistance levels to determine entry and exit points. Alternatively, a trader might use a chart pattern, such as a double top, to identify a potential trend reversal and then use an indicator, such as the RSI, to confirm the signal.

It is important to note that technical analysis is not a foolproof method and does not guarantee success. It is simply one tool that traders and investors can use to make informed decisions. It is also important to use risk management strategies, such as stop-loss orders, to limit losses in case the market moves against you.

Conclusion

Technical analysis is a powerful tool that traders and investors can use to make informed decisions about buying and selling assets. By analyzing price and volume data using charts and tools, traders and investors can identify patterns and trends that indicate a potential buy or sell signal. However, it is important to remember that technical analysis is not a foolproof method and should be used in conjunction with risk management strategies to limit losses. Open / Comment