postN86.1

Dynamic Forex Conditions Expected via Inflation Data and Fed

Dynamic Forex Conditions Expected via Inflation Data and Fed

Day traders may have experienced difficult results the past few days as Forex produced choppy conditions. The USD proved rather strong on occassion and likely whipsawed technical speculators, particularly if they were looking for sustained trends to emerge with bearish perspectives regarding the USD. The EUR, GBP and JPY have demonstrated rather turbulent values. More challenging days are likely ahead for speculators, this as inflation reports from the U.S and the Federal Reserve are on the horizon.

EUR/USD Five Day Chart as of 11th December 2023

Curious economic data was published at the end of last week, this as the broad markets turned in a rather convulsive five days of results via financial assets. U.S jobs numbers came in slightly higher than expected for the Non-Farm Employment Change figures and the Average Hourly Earnings. Following the employment data, the Preliminary University of Michigan’s Consumer Sentiment reading came in much stronger than anticipated, and its inflation data found that people are less fearful of inflation looking forward in the States.

On Saturday, China released its CPI and PPI statistics and they continued to show a downwards path. China has taken on a rather sticky deflationary track and this signals that consumers and producers in the nation remain burdened by harsh economic considerations.

Gold One Month Chart as of 11th December 2023

U.S equity indices were rather jerky, but finished last week’s trading higher than they started. U.S Treasury yields finished the week higher, except for the 30 Year Bond which came in with a result slightly below its starting point for the five day period. Gold has seen its price come down from highs and this may be interpreted as a reaction to the stronger USD. The precious metal may be in for volatile days ahead.

The risk appetite flame has apparently been turned lower, but is still simmering and this is due to financial instiutions waiting to see if the U.S Federal Reserve delivers a neutral monetary policy rhetoric this coming Wednesday. The USD which had been getting weaker across the board for a handful of weeks, suddenly seemed to hit ‘support’ and reversed higher as questions regarding ‘fair market value’ may have been considered. Larger players in Forex are likely waiting for their outlooks to be confirmed via the Federal Reserve or dampened considerably. The higher Average Hourly Earnings data on last Friday was a reminder inflation data continues to be stubborn, even if many analysts believe the Fed’s higher interest rates will begin to have an impact in 2024 and slow the U.S economy.

Monday, 11th of December, U.S Ten Year Bond Auction – the results of the auction will be studied by financial institutions, particularly as investors debate the necessity for interest rates to be kept high, against those who are arguing for the need to cut the Federal Funds rate by late spring 2024.

Tuesday, 12th of December, U.S Core Consumer Price Index – the inflation numbers will be critical for behavioral sentiment and certainly affect the attitude of financial houses and their trading positions before the Fed steps into the limelight on Wednesday. The Core CPI numbers are expected to be slightly higher compared to last month’s outcome. Perhaps last Friday’s higher U.S earnings data will pave the way for a calm reaction if the CPI is strong. Forex markets will respond to this report and day traders should be braced for price ranges and spreads to get wider.

Wednesday, 13th of December, U.S Producer Price Index – the PPI numbers will be released early in the States, five and a half hours before the Fed’s Federal Funds Rate publication. Traders need to be ready for volatility before the Producer Price Index figures are reported. The inflation numbers are expected to be higher than the previous month’s outcome.

Wednesday, 13th of December, U.S Federal Reserve – the last interaction of the year for the U.S central bank and financial institutions will be an important affair. The Fed’s Federal Fund Rate, FOMC Statement and Press Conference will get full attention. The Fed is expected to hold interest rates in place, the question is what ‘vocabulary’ the central bank will use as it lays the groundwork for its 2024 outlook. While talk of a more neutral Fed, one that isn’t as aggressive has been envisioned, financial institutions want to see a ‘softer’ tone become the reality.

Depending on how the U.S Federal Reserve talks about inflation and its monetary policy insights for the next few months to come via this FOMC Statement, the USD will take center-stage and Forex conditions may become rather violent as Wednesday concludes. Day traders are advised to be very careful if they plan on trying to surf the waves caused by the Fed’s storms which will certainly be stirred.

Thursday, 14th of December, E.U European Central Bank – the ECB will release its Main Refinancing Rate, Monetary Policy Statement and conduct its Press Conference. The last ECB event proved to be rather mundane. While some talking heads may try to make this coming event into must see television, many financial institutions likely expect the European Central Bank to say, “the E.U economies remain lackluster, there are glimmers of growth in some spheres, but recessionary problems are still evident”, this while also mentioning inflation is observed to still be too strong, but showing signs of erosion. In other words, the EUR/USD is likely to remain USD centric according to existing behavioral sentiment that has been triggered earlier.

Friday, 15th of December, China, Industrial Production – the report is anticipated to show a better outcome than last month’s figure. China skeptics will examine these reports carfully, as well investors with ‘skin in the game’ in the nation.

Friday, 15th of December, E.U, U.K and U.S Manufacturing and Services PMI – these reports will be watched from the European Union nations, the United Kingdom and U.S, but the results will be filtered into existing sentiment which has been generated on Wednesday and Thursday from the Fed and ECB. Behavioral sentiment in Forex will likely look at the PMI results with vague interest levels. Traders should note that as the weekend approaches, there will be only one full week of trading left before the holiday season gets underway and financial markets begin to experience thin volumes.

postN51

AMT Top Ten Miscellaneous Thoughts for the 8th of December

AMT Top Ten Miscellaneous Thoughts for the 8th of December

10. Book: A History of Venice by John Julius Norwich.

9. Music: Gram Parsons (featuring Emmylou Harris) playing Ooh Las Vegas.

8. Artificial Intelligence: Speed and processing advances will continue to make AI a buzzword in 2024, this as quantum computing looms in the distance.

7. Trading Volumes: Speculators should note there are about two full weeks of trading left before ‘thin’ holiday markets will begin to be seen. Meaning financial institutions while being cautious, will also start to position their assets according to their outlooks for early next year.

6. Energy Sector: WTI Crude Oil, Brent, Natural Gas and Unleaded Gasoline continue to challenge support levels as long-term lows remain in sight.

5. China: Important inflation numbers via Consumer Price Index statistics will come from the nation early Saturday, negative results are expected.

4. Risk Appetite: Optimism continues to be encouraging within behavioral sentiment, this as U.S equities remain near highs, the USD leans towards a mid-term outlook with potential weakness, and gold stays above 2000.00 USD per ounce.

3. USD/JPY: Bearish momentum continues in the currency pair, price velocity built speed yesterday and this morning’s trading has been dynamic.

2. Data: U.S jobs numbers will be released today, the Non-Farm Employment Change and Average Hourly Earnings reports will create reactions. However, unless the results are surprising, this data may simply work as an affirmation for existing risk appetite.

1. Federal Reserve: The Fed’s next FOMC Statement will be on the 13th of December, this knowledge will shadow the broad markets today and early next week.

postN17

AMT Warning: Many Brokers Do Not Care if you Lose your Money

AMT Warning: Many Brokers Do Not Care if you Lose your Money

Sounds like the title has been written wrong doesn’t it? Reads as if the editor clearly doesn’t understand the nature of the financial markets and how they work. Certainly anyone who offers their services to you would like to see you make money, or so you would like to think if you are an idealist who remains innocent and trusts all people.

Unfortunately, the title of this artcle which has lured you into reading this WARNING is not wrong. It has been written as cautionary advice for new and even experienced speculators. Many of the ‘financial’ websites and people you are considering to engage with via their day trading platforms and ‘expert’ systems are not worthy. Many do not care if you make money and some in fact are planning on ripping you off.

Blackjack Betting and Sitting at the Table with Too Much Leverage

Volatility is in the eye of the beholder, brokers like when day traders without deep pockets use leverage, because they expect their ‘clients’ to get wiped out. Yes, brokers are not your friends in many cases, in fact they are rooting against you in the back rooms of their trading operations. Why? Because they are not actually putting your trade into the cash markets, they are allowing you to trade virtuallly. Think of it as entering a casino.

The casino wants you to bet outrageous sums of money, because they know statistically most gamblers will lose. Again, you have been warned. Your use of leverage is music to the ears of your broker, because they know the volatility of the market will knock you out of a trade if your margin trading is too high and the slightest of technical reversals will produce a losing position for you. Then they will ask you if you want to make another wager. You can continue to sit at the ‘blackjack’ table or walk away.

Learn To Trade Without Getting Ripped Off

The first thing you might want to ask and acknowledge when you begin to trade is how much money can be lost? The answer is all of your money. If the answer being given to you is that there is minimal risk and that you are guaranteed profits – immediately close the website you are looking at and find another. Guaranteed profits equates into assured losses for unsophisticated traders most of the time.

If you are speaking to someone on the phone and the person keeps asking you how much money you want to make, please hang up the phone and speak to someone else. Self proclaimed gurus should be shunned. As someone once said, people tend to use the word guru, because the word charlatan takes too long to spell.

Yes, even in the most reputable and best of companies who provide trading platforms, you are going to lose money sometimes. The art of speculating and successsful trading is a delicate balance between losing money and making money. It is probable if you are a new trader, that unfortunately you are going to lose money and you will become uncomfortable. Sure you could get lucky or be a prodigy who is supremely talented, but you should understand many folks lose money in the beginning. There is a learning curve for day traders and you need good teachers. You also need a calm emotional state of mind.

Finding a Pro to Trade for You

You might want to consider letting someone that you trust and who has a proven track record with verifiable clients you can authenticate to invest your money. However to have a pro trade for you, the amount of money as a minimum you will need for them to consider trading your cash is likely sizeable. It doesn’t seem like a fair question from a social perspective, but are you wealthy enough to allow someone to trade for you?

If you find a person that is reputable to trade for you, make sure they have explained their modus operandi and you agree with their outline. In other words have them discuss their plan of attack and how they perceive complexities within the markets. What sectors do they invest in, what is the break down via percentages regarding the amounts of money they put into various financial assets? Asking questions may seem a bit impolite, but reputable fund managers and family offices should not get flustered by your questions, and they should have answers that are easy to understand. Do not let them talk over your head with fancy words and equations. Clear and concise language is necessary.

You shoud ask how often they rebalance their portfolios and if they issue a quartertly report. Importantly, ask for an example of transparent accounting which shows transaction fees that will be charged in full, including services they are charged by other financial providers within your account. Commission and banking fees can add up quickly. And then ask the magic question regarding drawdowns, and what are the allowable losses in a trade and in an account that can happen before they have to stop trading. You should get clear explanations regarding all of your inquiries.

But You Likely Still Want to Trade for Yourself

If your emotions do not let you take into consideration that there are going to be negative days, perhaps declines for weeks and bad months – simply put, trading isn’t for you. Learning to handle your money and investing should not be a speculative adventure, this is not about having fun. Oh you will certainly experience thrills, but you should try your best to limit crises. Risk management is a way to curb the elements of gambling which every day trader is undertaking.

Will you become a professional investor? What is a professional investor? Nothing like semantics and flattery to get the juices of a prospective investor going. Do not be fooled by flattery. Do not be fooled by the fact that you have a degree. There are folks who do not have high school graduation certificates looking to take advantage of you, some of them are great traders and will eat you alive. Education at the best of colleges or universities is no guarantee you will become a good trader. There is a difference between paper trading and having skin in the game.

The marketplace is waiting for you to enter and anticipates taking your money. Brokers are trying to get you to come to their trading platforms because they want to make money from your transactions and wagers if they are not reputable. These brokers actually do not believe you will make money. Until you prove you know what you are doing you will be treated like a ‘mark’. When you do prove you know what you are doing you will be treated differently in more ways than one, and it might prove difficult to withdraw your winnings.

Trust is Important, but Facts and Regulations Help

You must deal with people and companies you trust. Make sure to do a deep examination of the folks you are about to forge a trading association. Trading virtually via digitalized CFD and Forex houses that are not regulated can lead to financial disaster. And ask where your broker is regulated, and then check on the mandates of the entity and government which has written the rules for brokers – are they legitimate supervisors and who do the regulations favor? There is a lot of work involved before you trade, you must practice due diligence.

AngryMetaTraders wants you to understand the game of trading. We talk about sports often because the world of trading can be closely compared. If you are good and lucky, perhaps the world of investing awaits your success. If you suffer a learning curve like many, you can compare yourself to an athlete that must train to beat the best. You will need patience and dedication. Surround yourself with reputable firms and people to asssociate your speculative endeavors with in order to get solid results long-term.

postN83.1

FOMO Potential Could Fuel FX and Equities with Calm Winds

FOMO Potential Could Fuel FX and Equities with Calm Winds

Traders should not run towards their trading screens as the week begins, steady attitudes and risk taking tactics will be needed. Yet, there may be reasons to get excited. The return of full market volume as U.S financial institutions open and employees get back in their offices after the long holiday weekend needs to be monitored. The term ‘FOMO’ – fear of missing out – may be heard this week if U.S equity indices continue to shine, Forex demonstrates additional USD weakness and U.S Treasury yields decline further. There will be a whirlwind of economic data and opportunities for ‘official’ rhetoric in the days ahead.

Day traders should ask questions about the results which were seen technically via their charts last week, assets all struggled to find momentum last Thursday and Friday. And earlier in the week many Forex pairs produced choppy results. But here’s the thing, behavioral sentiment was rather muted as large speculators and financial institutions understood that trading volumes would be light – this caused strong bursts and sudden reversals early – but by the end of the week rather calm waters.

Many trading houses could increase their speculative positions this week based on their outlooks. Financial institutions clearly have believed the USD had been overbought and the ability of the GBP, EUR and JPY to gain in the past two weeks are possible signs large ‘players’ remain positioned for further USD weakness.

Equity markets have done well in November, but the major indices including the Dow 30, S&P 500 and the NASDAQ Composite all started to garner strength in the last week of October. Mid-term highs are being achieved in U.S indices. The parade of buyers may not be done quite yet.

Economic data results are vital for day traders to understand because they provide insights into the thinking of financial institutions regarding their outlooks. It is not the trading of small speculators that moves markets, it is the power of large cash positions which drives results. Questions regarding where the cash is going and the allotments financial institutions are pursuing is a key to understanding how the markets are going to react. This information is not readily available for day traders, instead smaller speculators need to try to comprehend outlooks regarding positioning and timeframes of larger players.

Part of the FOMO factor could develop as financial institutions begin to question how much money they will hold in money market accounts for their clients. While the practices of large investors are always comforted by the notion they are making guaranteed returns, the pursuit of better results and the desire for risk appetite does drive behavioral sentiment when bullish markets are being exhibited.

This week will be intriguing as full volumes return to the marketplace today and tomorrow. From today until the 13th of December FOMC Statement from the U.S Federal Reserve, results in the financial markets could be speculative. Financial markets are starting to signal that optimism is creeping back into the mindsets of large investors who may believe mid-term economic scenarios have improved.

EUR/USD Six Month Chart as of 27th November 2023

Monday, 27th of November, E.U. ECB President Lagarde – the European Central Bank leader will deliver thoughts regarding monetary policy to the European Parliament. While the E.U still is sufferning from recessionary numbers, economic data last week came in slightly better than estimated. However, the EUR/USD remains in a USD centric mode and this will continue this week.

Tuesday, 28th of November, U.S Consumer Confidence via the Conference Board, the numbers are expected to be slightly weaker than last month’s outcome. U.S economic data has been showing signs of being weaker than expected, last week’s Core Durable Goods Orders report followed this trend.

While this may be read as bad news by some people, day traders should note – particularly Forex speculators – that slightly weaker U.S economic data currently is music to the ears of many financial institutions because they believe the Federal Reserve will have to shift their rhetoric from aggressive to neutral.

Tuesday, U.S Federal Reserve Officials – a slew of FOMC members will be speaking at various events during the day. The Fed likes to give clues to the financial markets regarding their outlooks and perceptions regarding interest rates. The Federal Reserve has certainly paused their interest rate hikes.

The question now is if the U.S central bank will start to say while they remain diligent regarding inflation, that they now see signs of a ‘soft landing’ emerging within the U.S economy. If the Fed speakers begin to sound not only neutral, but offer hints of becoming potentially dovish by the spring of 2024 regarding monetary policy, this could spur USD selling.

Wednesday, 29th of November, Germany Preliminary Consumer Price Index – the inflation results are expected to be slightly weaker than last month’s outcome. German economic data has been recessionary, financial institutions know this, what large traders would like to see is stable results that are not wildly surprising.

Wednesday, 29th of November, U.S Preliminary Gross Domestic Product – the growth numbers are expected to show a slight increase. Equity markets, Forex and commodity markets will react to these results. The U.S economy has been surprisingly strong regarding growth. A slight slowdown regarding the GDP numbers would not be the worse thing, if growth numbers did come in below the estimate this could fuel additional USD weakness.

But traders should not get overly ambitious and bet against the GDP numbers. If the expected outcome of 5.0% is delivered, equity markets could use this as additional fuel. The number is sure to be a talking point, but unless their is a massive divergence it may simply be a way to create noise for ‘talking heads’, when in fact behavioral sentiment regarding risk appetite remains optimistic.

Thursday, 30th of November, China Manufacturing PMI – the result is forecast to show a slight improvement. China economic numbers remain a concern, particularly from the real estate sector which is suffering and is causing cascading troubles on other sectors within the nation. Global demand for products, as an example from European countries, that are suffering recessionay pressures also is slowing China’s manufacturing. A slight improvement would be welcomed by global investors participating in China financial assets.

WTI Crude Oil Six Month Chart as of 27th November 2023

Thursday, 30th of November, OPEC and JMMC Conference – the oil producers will certainly make their policies known and energy markets will react to the news and rumors. Commodity traders should note that WTI Crude Oil, Brent, Natural Gas and Unleaded Gasoline markets have been under price pressure and important mid-term cash support levels are in sight.

Thursday, 30th of November, U.S Core Personal Consumption Expenditures Index – this inflation reading is important and should be watched. The result is expected to be weaker than the previous month. If the outcome matches the anticipated reading of 0.2% or less, this could spur additional USD weakness. The Core PCE Index is an important reading for the U.S Federal Reserve regarding its inflation insights.

Friday, 1st of December, U.S Fed Chairman Jerome Powell – the Fed leader will be speaking at a college event in Atlanta. Traders should remember that about ten days before the Fed’s pause in November regarding its FOMC Statement, Powell delivered a large hint regarding monetary policy. The Fed Chairman’s comments will come late on Friday and could cause a reaction early next week if Powell’s remarks fuel more Forex speculation.

Additional note – the U.S jobs numbers will not be released this Friday, the Non-Farm Employment Change and Average Hourly Earnings results will be published on the 8th of December.

postN81

Behavioral Sentiment: Sports and Trading a Key Correlation

Behavioral Sentiment: Sports and Trading a Key Correlation

In order to be an effective day trader a speculator needs to be able to control their emotions. A person can have years of market knowledge, the best schooling, read the world’s greatest books, be able to quote the leading financial experts and still be a bad trader. While it is important to understand the complexities being generated via technical and fundamentals and the power of behavioral sentiment, again it doesn’t guarentee you profits.

CBOE VIX Index six month chart as of 17th November 2023

When a day trader initiates pursuit of position, long or short, they can even be right about the eventual direction and still lose their money when the trade is complete. The missing link for many speculators while trading is their inability to control their emotions.

Many sports fans know that there are teams that have some of the highest paid athletes, but frequently have lackluster results because the team is not able to handle the bright lights of the stadium, they let crowds affect them. Some teams simply prove over time they are not prepared to really compete in the most important games; trading results frequently are similar when a speculator is not ready for the financial market they want to compete within.

Unless a market participant can handle their anxiousness, nervousness, frustration, assaults from value gyrations (reversals of price), doubts and the noise of the crowd (news being generated from the media that is mere hyberbole) and other challenges that can affect their emotional state – a trader is unlikely to have success.

Sports and trading are very similar sometimes. Professional athletic competitions between the world’s best are often a contest of ‘wills’. In many sports the top athletes are almost equally matched regarding their physical ability. In trading many speculators have the same perspectives regarding potential market directions, yet they produce different outcomes.

The difference maker in sports and trading when it comes to positive results – winning, is the ability to control their emotional state. Remaining calm and focused, knowing the goal and tasks that must be accomplished to achieve victory in sports and trading is often the result of keeping tranquil psychologically in the middle of battle.

You can have all the necessary trading skills needed to pursue a position within Forex, equity indices, commodities via the cash market, CFDs and futures, but if you do not have control of your emotions you are likely to lose.

Day traders also need to understand that one day of results, winning or losing, does not mean anything regarding future prospects. Like the best athletes, traders need to enter every trade as if it is a new game. Discipline, tactical objectives are important in trading. Being able to walk away from a losing position and leaving enough in your account to pursue the markets, for the next time you feel there is a potentially profitable objective that is attractive is also important.

You must know yourself to be a good trader, you must understand your own emotions and work on weaknesses. The ability to be profitable over a long time is not as simple as merely entering your online trading platform and opening a position which has been recommended or that you think is a winner.

It is one thing to understand the positive movement of a potential trade, but you must be ready for the negative possibilities when a trade is not going your way and the ability to navigate through the storm. Is your stop loss in place? Does the amount of leverage you are using allow you to walk away from a losing trade and still have enough ammunition (money) for other trades? Can you handle the volatility that is likely to ensue in potentially choppy conditions?

You need a solid gameplan. One of the greatest risks a trader is confronted by is their lack of emotional fortitude. Successful speculators embrace their trading positions because they are attractive, but they also manage their expectations and have a plan of attack in place before they enter every trade. Good traders can block out the noise of the crowd and enjoy the competitive nature of battling the financial markets.

postN51

AMT Top Ten Miscellaneous Musings for the 17th of November

AMT Top Ten Miscellaneous Musings for the 17th of November

10. Book: The Art of War by Sun Tzu.

9. Music: Pablo Casals playing Bach’s – The Six Cello Suites.

8. Cricket: India and Australia will meet in the World Cup Final this Sunday in a match between two of the world’s best squads.

7. Gold: The precious metal is trading within sight of its October highs and may find speculative buyers looking for potential upside via wagers.

6. Commerical Real Estate: WeWork bankruptcy knock on effects will cause additional strains in U.S market, this as the sector struggles with vacancies in this era of ‘remote’ employees.

5. Risk Appetite: U.S equity indices are at three month highs, U.S Treasury bond yields at one week lows as optimism grows in the outlooks of long-term investors.

4. Data Watch: Retail Sales numbers from the U.K, and U.S Housing Starts and Building Permits statistics will be released today.

3. USD: Dollar Index futures are trending lower and near values last seen in the third week of September as financial institutions brace for a weaker USD mid-term.

2. U.S Treasuries: Yields are incrementally declining, helping push the USD lower, and creating positive equities momentum, this as U.S bonds appear ready to sustain a cycle lower if investors can remain tranquil.

1. Federal Reserve: Inflation data via the CPI and PPI were weaker than anticipated, and the U.S Fed’s December FOMC Statement should begin to sound less agressive.

postN19

Preventing WWIII: Part 2 – Reviving Western Deterrence

Preventing WWIII: Part 2 - Reviving Western Deterrence

Opinion: The following article is commentary and its views are solely those of the author.

Aggressive Western Action Can over-extend China and Revive Needed Deterrence.

Some cliches are just correct, in spite of their being cliches – “if you want peace, prepare for war” is one. But really it should be “if you want to avoid war, deter war”.

Therefore, it is not clear to me why there is opposition by some in the Republican party to fighting Russian aggression in Ukraine. For some, I guess it is a knee jerk reaction against Biden administration policy while for others it seems to be a general loathing of American involvement in the world. 

Each is understandable on its own but does not take into effect the appeasement of Russia will have on Western deterrence around the world – including in the Western hemisphere and the Indo-Pacific. While most Americans understand that Russian control of Ukraine threatens the main Western European countries, the key to Russian imperialism really is in the south. Historically, Russia has always tried to find a warm water port to call its own. For nearly four centuries Czarist Russia fought Ottoman Turkey so that Russia could expand its territory southward and have a warm water presence in the Mediterranean. Currently, a Ukrainian presence in the Black Sea denies Russia even the opportunity to pressure modern Turkey to abide its wishes.

A Russian victory in Ukraine would mean dominance of the Black Sea by the Russian Navy and directly challenge Turkey to appease Russian power by giving them free passage through the Dardanelles to the Mediterranean. That in itself would not be worth much to the Russians without a port in the Mediterranean, which they currently have. That they have one goes back to the disastrous decision by the Obama administration to invite Russia back into the Mideast in order to take care of Syrian chemical weapons. This came, we all remember, when the Syrians laughed at Obama and crossed his “red line” about using chemical weapons against its own people. We might also remember when then Secretary of State John Kerry (the one who was never right on a single foreign policy issue ever) who, first demanded that Syria turn over all chemical weapons in a week, then reassured them that even if we attack it will be “unbelievably small”.

In 1973-4, Henry Kissinger brilliantly took advantage of the Israeli-Arab War’s outcome with Israel’s surrounding the Egyptian 3rd Army in the south and controlling the road to Damascus in the north, by brokering a cease fire on both fronts. This led directly to the expulsion of Russia/Soviet Union from the Middle East. While Russia continued friendly ties with the murderous Assad family – first Hafez and then his son, Bashar, they did not have a military, air or naval presence there. Due to this longstanding relationship with Assad’s Syria, Obama and Kerry thought it a brilliant idea to have them come in and do the dirty work that they didn’t want to do – prevent Assad from gassing his own people. 

As Russia came in and established air and sea bases in Syria and introduced the infamous Wagner group to carry out its brutal ground operations, Russia slowly started to strengthen its position in the region. While slyly allowing Israel to attack Iranian arms shipments meant for Hezbollah while pretending to be its ally, Russia formed a close  relationship with Iran. Wagner, which fought hand in hand with Hezbollah in order to prop up the Assad regime (and attack American forces fighting ISIS) is now rumored to be training Hezbollah in the use of Russian anti-aircraft systems. 

In addition, reports last week that an Iranian Ilyushin 76 cargo jet has now landed in one of the Russian air-bases they established after Obama’s kind invitation to return to the Mideast. This plane, filled with Iranian arms destined for Hezbollah has been unable to land in regular Syrian airports or bases because Israel continuously puts them out of service. Knowing that Israel would never attack a Russian base – this is a safe haven that Russia gladly supplies. 

When free countries unite in warfare there is usually one joint goal  – that they are all united to defend freedom – that is why they fight together.  While autocratic and totalitarian regimes fight together it is usually a combination of a negative goal – disturbing or destroying the current world or regional order – as well as the goal for each power in itself. Currently, the joint goal in the Mideast (of Russia, China, Iran and North Korea) is to hurt the main ally of the US in the region – Israel, in order to weaken and embarrass the US. For Iranians, they also want Israel destroyed. For Russia, they want Israel weakened so they can replace the US as the power broker in the Mideast. For China, it is to dismantle America’s control of the flow of oil and, eventually, the replacement of the USD in the global economy with the Yuan.

Ukraine is important in this calculus because, as we said above it gives Russia complete control of the Black Sea and will pressure Turkey – whose NATO membership is uses only to its own advantage – to break permanently with the West. While the Chinese theory is that the two fronts the US is supplying arms to, Ukraine and the Mideast, are tying it down and expending its resources it would otherwise use in the Pacific, in truth, an aggressive strategy on both fronts would be to over-extend Russian and Chinese resources in order to keep China from moving on Tiawan. A credible threat of destruction or even marginalization of the Axis allies in the Mideast – including (besides the soon to be gone Hamas) Hezbollah, Shiite-Iranian proxies in Iraq and Syria, as well as Iran itself combined with a major offensive in Ukraine will tie down Axis resources and possibly prevent a Chinese blockade or attack on Taiwan.   If its two main allies need full supply and full readiness to be able to respond to credible and massive attacks by Ukraine, Israel and the US, China itself might have to expend resources to prop up its own allies. 

Add to that a major show of naval force in the Indo-Pacific by Japan, India, Australia and South Korea combined with US forces will give China the choice of destroying their own wavering economy by attacking or blockading Taiwan or in maintaining peaceful Pacific trade routes while trying to prevent the collapse of its Axis allies. 

An immediate and radical change in policy can restore Western deterrence quickly.   Re-arming Ukraine and leaving Israel to do its job without pressure to stop in Gaza and to respond forcefully in Lebanon will send a strong message. Biden brought two carrier groups to the Mideast and told Hezbollah, “don’t”. But they did.  

In spite  of that  US Secretary of Defense Austin told Israel that its response to Hezbollah aggression in the north is “provoking” them.  

And the US hesitates even against Iranian proxies. Just now, the NY Times has reported that Biden-Blinken have turned down a Pentagon plan to be more aggressive in response to Iranian attacks against US forces in Syria and Iraq for fear of “provoking Iran” (this seems to tell us that the Austin complaint from Austin to Israel is really from Blinken).  

Iran never seems to fear provoking the US.   

Israel fooled itself by thinking Hamas was deterred by its destruction of an arms factory or two (as the US is doing now in Iraq/Syria) when proper deterrence would have meant them knowing we can and will go into Gaza and destroy their underground city as Israel is doing now. Instead, media fear mongers, backed by Israeli ex-Generals on the payroll of the US progressive left (via cushy think-thank jobs) combined with policy directives by successive governments have told us and Hamas time and time again that Israel cannot destroy Hamas as the cost is too high. I don’t want to speak too early, but that seems to have been as wrong as their assurance that Hamas is deterred since they want to drink white wine in the evening overlooking the Mediterranean while watching their children play innocent video games.

It is time to stop calling for cease fires and repeating UN hypocrisy and to start being aggressive and provocative in the defense of freedom. 

Disclaimer: the views expressed in this opinion article are solely those of the author, and not necessarily the opinions reflected by angrymetatraders.com or its associated parties.

You can follow Ira Slomowitz via The Angry Demagogue on Substack https://iraslomowitz.substack.com/ 

postN67.1

To Risk or Not to Risk that is the Speculative Question

To Risk or Not to Risk that is the Speculative Question

Last week U.S equity indices demonstrated a rise in value. The highs achieved in the Dow Jones Industrial Average, the NASDAQ Composite and the S&P 500 by the end of last week only touched values seen in the middle of October. And while their ratios remain below the highs of early August and falling values seen in September, the move upwards was certainly welcome by financial institutions and day traders who hold optimistic viewpoints.

U.S Treasury yields declined last week. While incremental decreases were made through Thursday, the U.S Non-Farm Employment Change and Average Hourly Earnings reports both coming in below expectations on Friday, created a stronger dose of lower yields. The 5, 7, 10 and 30 year U.S Treasuries are now trading near mid-September values. The 2 and 3 year notes are moving around early September numbers.

Gold One Year Chart as of the 5th November 2023

The USD grew weaker in slight movements against many major currencies last week, but upon the weaker jobs numbers found increased selling price velocity. Gold however remains suspiciously strong, which brings up the notion that risk adverse ‘insurance’ is still being held closely by investors who remain nervous.

The Middle East crisis is ongoing in Israel against Hamas and to a limited extent Hezbullah, but financial institutions have seemingly been able to digest the news and remain tranquil and vigilant. Another sign of calm coming into the global financial markets is the price of WTI Crude Oil which finished the week under 81.00 USD per barrel.

Economic data will be relatively light this coming week, and behavioral sentiment appears to be the potential larger factor until Friday regarding impetus for day traders and financial houses. Certainly loud global developing news could suddenly erupt and cause nervous investors to falter, but last week’s trading results showed signs of improving risk appetite.

The U.S Federal Reserve met expectations last Wednesday and didn’t raise the cost of borrowing. The mid-term seems to indicate interest rates will remain high, but that the U.S central bank will not raise the Federal Funds Rate anytime soon. The lower than expected inflation report via the Average Hourly Earnings before going into the weekend helped highlight this thinking, although it remains a consideration that is still speculative.

Officials from the major central banks including the BoJ, BoE and Fed will be speaking this week and could cause turbulence with their rhetoric. However, no major surprises will likely come from their mouths. Although the Bank of Japan may rattle the prospects of intervention to keep USD/JPY traders on their toes.

Monday, the 6th of November, Germany Factory Orders – the result is expected to be negative and highlight the nation remains within recessionary conditions. The Sentix Investor Confidence reading will also be released slightly afterwards for the European Union and a worse number than last month’s outcome is anticipated. But the EUR/USD is likely to remain mostly USD centric, even though these reports could cause momentary fluctuations.

AUD/USD Six Month Chart as of the 5th November 2023

Tuesday, the 7th of November, Australia Cash Rate – the Reserve Bank of Australia is expected to raise its interest rate by 0.25% to 4.35%. Will the RBA take a gamble and not raise the interest rate due to other major central banks holding their rates in place, or will the increase go ahead to fight stubborn inflation while trying inspire some confidence in the AUD? A hike seems to be the direction the RBA will decide upon, having said that, the Australian central bank have surprised financial institutions before.

Wednesday, the 8th of November, U.S 10-year Bond Auction – the results from this sale and the yields that develop within U.S Treasuries will have an affect on Forex. Lower yields than anticipated could signal a weaker USD. However, risk adverse elements will need to be calm for the bond auction to produce tranquil results.

Thursday, the 9th of November, China CPI and PPI – the data from these inflation reports will be watched closely. Chinese economic numbers has shown some signs of stabilization the past few weeks, both of these publications are expected to have negative outcomes. Concerns about the financial pressures domestic consumers are facing regarding housing market values in China and the way in which they spend due to lackluster prospects are concerning. The USD/CNY will be affected in the wake of these statistics, and the USD/SGD could see momentary volatility too if the results prove to be a surprise.

GBP/USD One Month Chart as of the 5th of November 2023

Friday, the 10th of November, U.K Gross Domestic Product – last month’s number came in with an unexpected positive gain of 0.2%, this GDP report is anticipated to show no change. The GBP/USD jumped in value on Friday and financial institutions will be geared towards behavioral sentiment most of this week, but the British GDP data could cause a reaction before going into the weekend.

Friday, the 10th of November, U.S Preliminary Consumer Sentiment via the University of Michigan – the reading is expected to be slightly below last month’s outcome. U.S consumers remain a strong point of light for the U.S Federal Reserve. American consumers have remained spenders, although they have seemingly curtailed purchases of large ticket items such as cars and big appliances. If this data comes in weaker than expected it could propel more selling of the USD. A stronger number than anticipated could spook financial institutions and cause a slight surge in buying of the USD.

postN51

AMT Top Ten Miscellaneous Shots for Friday the 3rd of Nov.

AMT Top Ten Miscellaneous Shots for Friday the 3rd of Nov.

10. NBA: Welcome to Victor Wembanyama’s world. VW’s 5th game as a Spur was historic last night.

9. South Africa: The Springboks Rugby World Cup victory is helping unifying the nation and giving all its citizens a hope for better days.

8. Book: The Gulag Archipelago by Aleksandr I. Solzhenitsyn.

7. Crypto: Sam Bankman-Fried found guilty on all counts. Yet, Bitcoin is near 34,600.00 USD per coin.

6. Risks: Signs of appetite as U.S equity indices have moved higher, and U.S Treasury yields have declined.

5. Gold: The precious metal still lingering near 2000.00 USD and may attract bearish speculative positions.

4. Middle East: Global financial institutions appear to have dealt with the noise.

3. U.S Jobs Reports: Non-Farm Employment Change numbers and Average Hourly Earnings inflation data will be published today and shake markets.

2. Federal Reserve: The U.S central bank may have reached the end of it interest rates hikes cycle.

1. USD: The world’s reserve currency remains suspiciously strong and if it is a relatively calm today and this weekend, day traders may begin to embrace selling wagers.

postN66.1

Ready for Risks as Nervous Markets Await Plenty of Outcomes

Ready for Risks as Nervous Markets Await Plenty of Outcomes

So you want to be a trader. You imagine that it will be fun and possibly easy to make money from the comfort of a cafe, office, maybe a bus or subway train with a simple touch to an app on your phone that allows seamless possibilities to take advantage of trends that are easy to spot. Yet, this may not be the week to decide on beginning your endeavor, perhaps you will want to watch the global markets and learn from the possible mistakes of others in the coming days.

Simple trends for the moment have largely disappeared and financial markets face a rather important week of data and global risk events that not even the most experienced trader can comfortably embrace. Risk events will shadow this week of trading. There will be a lot of drums beating and earplugs are recommended for speculators.

To get started the war in the Middle East, actually the war between Israel and Hamas is ongoing and it will not end soon. Israel doesn’t want U.S ground troops and while some media sources may make these claims, it is extremely unlikely to happen. Yes, the U.S has sent war ships to the Mediterranean, but this is largely to suggest to Iran that the nation not become overtly active in the conflict.

Global investors who have been around the block and have traded when other conflicts have escalated – Ukraine, Iraq, Afghanistan, African wars, and simmering feuds between China and India are somewhat used to these news flows and developing crisis forays. It does not make things easier, but at the same time being able to separate the noise from the actual reality of these events is essential. Learning to be mindful of the media and its frequent empty hyperbole regarding what could happen next is vital. Traders need to be critical thinkers.

If a day trader can step away from concerns regarding conflicts and focus on how behavioral sentiment is going to develop via the gyrations of financial institutions and larger investors, they will go a long way in starting to pursue a more tranquil path and find the ability to organize their thoughts quietly.

Gold is flirting with the 2000.00 USD mark per ounce. U.S indices continue to trade near lows and risk adverse tendencies will likely continue to flourish in the near term. There is a parade of important data releases and rhetoric that will come this week. Traders who are technically driven should consider paying attention to the economic reports and pronouncements that will come as they mix with business outlooks and varying time frames that must be considered when making bets on the financial markets.

Most of Monday’s economic reports are in already. Australia posted better than expected Retail Sales. German Preliminary Gross Domestic Product statistics came in with a slightly better than anticipated number, although growth is still negative.

Tuesday, 31st of October, China Manufacturing PMI – economic data from China came in slightly better than expected the past week, but shadows lurk and the manufacturing numbers will help provide insights regarding headwinds the nation is facing. The USD/CNY remains at elevated levels. Transparency remains a desire for international investors who want to participate in China.

USD/JPY Six Month Chart as of 30th October 2023

Tuesday, 31st of October, Bank of Japan – the BoJ is expected to make no changes to interest rate policy (you have heard this song before), but the USD/JPY remains near the 150.000 level and the Bank of Japan is not comfortable with this higher ratio. The question remains how they can combat this value properly. By suggesting the notion the BoJ can intervene when they want to, can keep financial institutions from over aggressively buying the USD/JPY. Expect to hear some of these intervention warnings again tomorrow.

Wednesday, 1st of November, U.S Federal Reserve Funds Rate and FOMC Statement – Jerome Powell made it pretty clear in mid-October the U.S Fed will likely not raise its interest rate at this meeting. However, he warned the potential exist to raise rates down the road if inflation shows unwanted sparks. American consumers are a reason for concern too, although the Fed will not admit this – the U.S Fed would like to see less consumer demand which they believe would help decrease inflation. Problematically, U.S Treasuries are not only sticking near higher yields because of the potential of higher interest rates, but they are also being bought as a safe haven because of Middle East worries. This will continue to put pressure on the U.S government because paying off bonds with higher yielding rates of returns to investors can become increasingly difficult, particularly when U.S government spending appears to be nearly out of control.

GBP/USD Six Month Chart as of 30th October 2023

Thursday, 2nd of November, U.K BoE Official Bank Rate and Monetary Policy Summary – no changes are expected by the Bank of England. Perhaps like the ECB last week the Bank of England will try to ‘sound’ a sedate level of rhetoric and say they are monitoring economic conditions which remain rather lackluster, but are showing slight signs of improvement via inflation and potential growth. The GBP/USD continues to fight near lows and the 1.20000 level is likely an important juncture.

Friday, 3rd of November, U.S Non-Farm Employment Change and Average Hourly Earnings – the jobs numbers are expected to come in less than the previous month’s results. The wages report could be important if there is a significant change not corresponding with the estimate. Inflation needs to show signs of decreasing before the U.S Fed backs down from its aggressive interest rate stance, if the Average Hourly Earnings number remains stubborn, so will the U.S Fed.

postN51

AMT Top Ten Miscellaneous Points for Friday the 27th of Oct.

AMT Top Ten Miscellaneous Points for Friday the 27th of Oct.

10. Rugby World Cup: South Africa Springboks versus New Zealand All Blacks in a titan championship tomorrow.

9. Word of the Day: ‘Resilience’ as Israel’s business and start-up sectors remain focused and strong.

8. El Nino: Change to ocean currents still problematic, Acapulco hit by significant damage via Hurricane Otis.

7. Data: U.S Core Personal Consumption Expenditures Price Index could cause a reaction if the inflation numbers are higher than anticipated.

6. ECB: Pronouncements were consistent yesterday as Europe battles lackluster economy and elevated consumer costs.

5. U.S: Advance GDP results yesterday stronger than estimated, American consumers remain buyers.

4. Electric Vehicles: EV market showing fatigue as poor earnings from Tesla and other manufacturers confront investors due to ‘resource’ hurdles and as legitimacy of mass adaption is questioned.

3. USD: Trend and resistance levels under scrutiny from day traders and financial institutions as potential reversals are contemplated.

2. U.S Equity Indices: Dow Industrials, NASDAQ and S&P 500 now facing critical tests of late May 2023 support levels after yesterday’s selloff.

1. Behavioral Sentiment: Razor’s edge conditions in many assets are dangerous. Risk adverse elements are strong, timing a sustained shift of momentum is speculative.

postN64

Optimism in Challenging Conditions and Time Considerations

Optimism in Challenging Conditions and Time Considerations

Traders by nature are optimists, after all they are wagering on outcomes they believe are valid with targets regarding future results. Global market conditions for the moment have created expensive price action unfortunately, this as plenty of day traders wagering on their perceptions have found out while whipsaw movements and fast velocity have taken place and caused losses.

The USD continues to create turbulent higher values among many major currencies it is teamed against as financial institutions exhibit risk adverse tendencies. U.S Treasury yields may be going up because the U.S Federal Reserve continues to sound alarms regarding inflation, but the last two weeks of trading globally have seen an influx into U.S Treasuries as a safe haven move. Another signal that risk appetite is poor among global investors is because while the USD has gotten stronger, gold has also risen in value.

Gold Five Year Chart as of 26th Oct. 2023

And importantly, global markets are trading in conditions which are not considered normal. Many inexperienced people within financial institutions have not dealt with markets like the ones being battled now. High interest rates combined with risk adverse conditions because of concerns regarding an escalation of war conditions in the Middle-East are causing a storm of volatility. U.S stock indices are trading at mid-term lows, and this may continue to be a theme over the next few weeks and beyond, but certainly there are those among us who look towards sunnier days.

So what does an optimist do if they are a day-trader? Perspective needs to be questioned at all times by speculators, and bias regarding all insights by individuals need to be given consideration. A trader must make sure they are not trading based on noise which is coming from the media and tainted with hyperbole. A trader must also question their personal instincts making sure they are free of preconceived notions. Behavioral sentiment gets affected from many angles when market noise becomes loud. Looking for a quiet place to think about market direction is vital for everyone.

Speculators need to remain calm and stick to risk management tactics that prove effective even during chaotic trading conditions. A variety of ways to be involved with the markets directly exists for all, Forex, equities and indices, commodities, bonds are only some of the avenues. Traders can go long or short on their chosen positions, they can participate in the ‘cash’ markets, but can also participate in futures and options trading via time related duration.

Famous investors are known for taking advantage of lower values when fear is high. They look for value via fundamentals within assets with long-term track records. It is not an accident the USD is strong, U.S Treasuries are being sought, gold is being bought currently.

Trends are there to be found and can be taken advantage of by day traders who are looking for quick hitting outcomes, but they must proceed carefully. Because it is also important to acknowledge that no matter how bad circumstances sometimes look in the short-term, that a positive quality among we as humans is to seek optimism. There are reasons to participate in trades with a perspective knowing more tranquil days will come and the markets will grow calm again, markets can reverse and suddenly display risk appetite.