EliteTrades

On August the 5th, the VIX hit almost 40. At the time almost everybody was talking about more volatility to come. Fast forward to today, the VIX is at 15. Nobody told the retail traders that volatility was caused by the unwinding of the YEN carry trade and not by systemic forces of the market. The moral of the story is ‘when you can’t explain what’s going on in the market, trust your trading plan and carry on.’

SELL-OFF !!!

Unemployment worries in the U.S.,
a high interest rate environment and
geopolitical tensions in the Middle East,
precipitated a sell-off which is reminiscent of a crash.
Hold on to your seats!

A trading plan is a comprehensive blueprint that outlines a trader’s strategies, objectives, and risk management techniques for executing trades. Here’s why sticking to a trading plan is crucial:

1. Discipline and Focus: A trading plan promotes discipline by providing clear guidelines. It helps traders stay focused on their goals and avoid impulsive decisions driven by emotions.

2. Risk Management: By specifying risk tolerance, stop-loss, and take-profit levels, a trading plan helps manage risk effectively. It prevents overexposure and limits potential losses.

3. Consistency: Following a plan ensures consistent decision-making. Traders can evaluate their performance over time and make necessary adjustments.

Remember, consistency is key to trading the markets.

French President Emmanuel Macron’s decision to call snap parliamentary elections after his party’s defeat in the European Parliament vote has had significant repercussions, including effects on the stock prices of major French banks.

French banks, especially those listed on the CAC (French stock market index), have experienced fluctuations in their stock prices due to the political uncertainty caused by the snap elections.

BNP Paribas
7-Day Return: -2.2%

Crédit Agricole
7-Day Return: -3.5%

Société Générale
7-Day Return: -3.9%

Why copper is going up?

Supply Constraints: Slow growth in copper supplies due to discouraged investments in mines and declining copper content in ore.

Energy Costs: Copper production is energy-intensive, and rising oil and natural gas prices have increased demand for copper.

Energy Transition: As solar energy and battery costs decline, demand for copper in renewable technologies (e.g., electric vehicles) rises.

Investor Interest: Investors use copper as an inflation hedge, and recent supply shocks have strengthened its position.

Speculation: Hedge funds investing in copper futures have driven prices to record highs.

The 200-day moving average is an important part of technical analysis as it is widely regarded as a key indicator of long-term market trends and investor sentiment.

Traders and analysts often use the 200-day moving average to assess the overall direction of a market or the price movement of a specific asset. If an asset's price is above the 200-day moving average, this is usually interpreted as a bullish signal, suggesting that the long-term trend is positive. Conversely, if the price falls below the 200-day moving average, it can be interpreted as a bearish signal, indicating potential weakness in the market.

The 200-day moving average also acts as a support or resistance level, with price often bouncing off or consolidating around it during trend reversals or pullbacks. Overall, the 200-day moving average is a valuable tool for traders and investors looking to gauge the strength and direction of long-term market trends.

Geopolitical tensions, interest rates and negative correlation to the dollar has pushed gold higher.

Going strong.
96.17% increase since the start of the year.

Warren Buffett once said: "I've never caught tops and bottoms. Yet, I am still a billionaire.

Have a healthy and fruitful 2023 !

If you bought Exxon Mobil, BP or Shell a year ago then Xmas came early.

Trade your plan NOT your prediction.

The dollar is king !

A number of hedge funds and money managers were buying into growth stocks, in Q2, as the Nasdaq 100 (NDX) (QQQ) was down than 22%, while the S&P 500 (SP500) (SPY) was down about 16.5%. Time to follow the smart money and buy some undervalued tech stocks?

The US Economy Is Poised to Slow as the Fed Taps the Brakes.
However, labor supply lower than job openings.

Supply-chain disruptions,️ market volatility, resource insecurity and ️ displacement of people create an unpleasant mix for world economies.

EliteTrades updated their website address.

Soaring inflation, sky-high commodity prices, hawkish monetary tightening and inverted yield curves are just some of the dangers concerning investors right now.

Caution is advised despite the apparent calm in stock markets.

Is Russia sleepwalking into a default?

The war in Ukraine sent commodities to stratosphere while economic indicators are going south. With oil at all-time highs, Nasdaq in bear territory and nickel, wheat and corn going vertical, it looks like Europe is heading for a recession, Russia for a depression and the USA for stagflation.

Massive outflows out of European equities due to continuing hostilities in Ukraine.

Volatility Index remained lofty even in sessions of "buy the dip".
Are we to expect another shoe to drop?

Expect further supply chain disruptions in the electronic chip industry after Russia's invasion of Ukraine.
Ukraine is a major exporter of neon gas used in lasers during chip manufacturing.