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Significant Highs All Around as Speculation Grows Frothy

Significant Highs All Around as Speculation Grows Frothy

Gold, platinum, and the major U.S indices are all flirting with record values. Fast trading is being seen on all fronts, dangerous reversals are also being displayed and causing harm for day traders. The U.S government shutdown remains in full force. Not enough pain has been heard from the U.S public yet which would make politicians pause and actually try to negotiate a deal.

Milestone apex values have been experienced. Gold has produced the 4,000.00 USD per ounce level and sustained value, the Nasdaq 100 toppled 25,000.00 the past two days, but has moved lower for the moment. Conditions for day traders are swift and they need to be careful. And while the U.S government is shuttered, the Federal Reserve is still expected to announce their FOMC interest rate decision on the 29th of October. A Federal Funds Rate cut of 25 basis points is still anticipated.

Gold Three Month Chart as of 8th October 2025

Forex has seen jittery results as the EUR, GBP, JPY have struggled in recent trading versus the USD. And while some people may point to the stellar results and values within Gold and Bitcoin as evidence for safe haven wagers being placed, large speculators are playing a key ingredient in the broad markets too. Investors are certainly looking for value and have a belief that buying now represents a discount compared to what Gold and equity values will be over the long-term. However, day traders should also remember that a large amount of influence in the markets derives via behavioral sentiment, and as record highs are being challenged anxiousness grows regarding potential responses from speculative forces particularly when profit taking remains a part of wagering.

Nvidia Three Month Chart as of 8th October 2025

While questions and concerns are heard about a possible AI bubble being experienced and too much money being invested in equities like Nvidia, Oracle, Microsoft, etc., folks need to understand long-term investors are gearing their portfolios towards outlooks. Betting on these companies playing a significant role in technological advancements is a long-term viewpoint which works on optimism. Artificial intelligence is important, but the motor that runs AI infrastructure via semiconductors, big data distribution, servers and cybersecurity are crucial. The promise of quantum computing is also experiencing a surge of investment because of a belief in the future.

USD/JPY Three Month Chart as of 8th October 2025

And that is what day traders who are tempted to bet against the trends in the marketplace need to remember. Investors will not bet against Wall Street because of the government shutdown. In fact, they will certainly be heard joking that corporations run more effectively with less government intrusion.

This is not a simple puzzle. Complexity certainly needs to be considered regarding valuations in the EUR/USD, GBP/USD and USD/JPY. Intriguingly, day traders may want to take a look at the South African Rand too, because technically it continues to be strong against the USD, which is rather out of step and a rather interesting non-correlation. The broad Forex market has lost some its luster for day traders the past year because of a lack of perceived volatility across the board. But volatility may be on the way, the Japanese Yen certainly stands out and should be watched via the USD/JPY and JPY crosses in the coming days and weeks.

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Nvidia: Short-Term Speculative Reactions Versus Investing

Nvidia: Short-Term Speculative Reactions Versus Investing

Nvidia is near 181.60 as of this writing, this after the company issued a quarterly report that beat expectations, but also pointed out that mid-term concerns may slow down the pace of some of its data driven business, and that China enterprise complications remain murky.

Nvidia Five Day Chart Early Morning as of 28th August 2025

Day traders should be certain they acknowledge the difference between a short and near-term wager on Nvidia compared to mid and long-term outlooks. Speculators who want to venture forth and gamble on Nvidia based on last night’s quarterly earnings report are free to do so. However, there is a distinct difference between betting on what today and tomorrow’s reactions in Nvidia will be compared to folks who are investing long-term in the company and believe that over the long haul it will remain a solidly profitable company that adds value to bottom lines.

In early August Nvidia was challenging the 185.00 ratio. As of this morning the stock is near the 181.60 mark. Nvidia faces headwinds currently in after hours markets because the company had the gumption to say it outperformed expectations in the last quarter, but put up a cautionary sign saying its data business may face some obstacles regarding growth, and outlooks for its China enterprise remains solid but could face some complications.

Reacting to Short-Term Temptations and Speculating:

For those who want to sell Nvidia based on the above ‘warnings’ today, they are free to try their luck. However, selling positions could quickly turn into buying opportunities. Nvidia like most equities is about considering reactions due to behavioral sentiment, short-term nervousness could rapidly shift to bullish perspectives in the eyes of investors, programmed trading software, and – yes – day traders.

Lower support for Nvidia technically when a five day chart is looked at may be 170.00 if someone is overly cautious. A look at a one month chart for day traders who have a bit more of an aggressive manner, may believe technical chart evidence suggests a lower move can be taken advantage of at 177.00, this if they are keen on waiting for a downturn to look for an opportunity to buy at lows.

Yes, perhaps some short sellers may target the mentioned values as places to cash out positions while speculating. But there is a chance Nvidia will not touch those lows. Perhaps bearish reactions – if they even happen – will fade quickly and additional bullish sentiment will continue to seep into Nvidia. Does anyone really think Nvidia is about to face a steep selling curve?

Tech Stock Consideration and Looking for a Barometer:

·       Some folks are talking about AI and its potential status as a bubble.

·       However, this is Nvidia we are talking about, even if there is a bubble in the AI sector, Nvidia long-term is a solid stock that will likely do well for years to come.

·       Short-term reactions seen the remainder of this week and perhaps over the next few weeks may be choppy, but this would include reversals in both directions.

·       Betting on a big downside in Nvidia looks to be wrongheaded.

·       Traders who are conservative and believe Nvidia is a good buy short-term after some selling happens, while looking for momentum higher – at least back to known resistance levels – may be making a solid wager.

Nvidia is one of the most important equities in the stock market. Some may justifiably say it is the most important at this moment. As a big driver of the Nasdaq 100, Nvidia has in many respects traded sideways since late July. This has been one of the reasons the Nasdaq 100 has faced headwinds too. The broader S&P 500 has been doing better than the Nasdaq 100 the past few weeks, this because tech stocks like Nvidia are facing some skepticism regarding just how high they can go. However, Nvidia as a stand alone company has excellent long-term prospects.

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India Insider: Concern IT Empire is at Risk in Age of AI

India Insider: Concern IT Empire is at Risk in Age of AI

When China’s DeepSeek announced its Generative AI program as a rival to U.S based ChatGPT, the world paid close attention. In fact, Nasdaq bellwether stock Nvidia, the world’s most valuable company, took a hit because the DeepSeek product was made with less expensive chip processors compared to ChatGPT’s infrastructure, which uses Nvidia’s GPU technology.

In North America and Europe, DeepSeek’s rollout was met with much surprise and intrigue. And the true ‘poster child’ of India’s post-liberalization era, the IT (Information Technology) sector has been facing its own challenges and was also caught off guard. India’s IT sector employs some 5.3 million people and helps maintain its current account balance sheet by earning crucial foreign exchange reserves. The top four major IT companies have a combined market cap of $300 billion USD, larger than India’s richest man Mukesh Ambani’s Reliance Industries, which stands around $238 billion USD.

Nifty IT Index One Year Chart as of 29th July 2025

India’s IT Business Model and Artificial Intelligence

Indian IT companies operate on a model of software servicing for offshore clients, typically via medium to long-term contracts. Their business operations are embedded across the globe thanks to affordable pricing and the quality of services provided by Indian software engineers. Now, this model is being threatened by the rise of Generative AI and taking it lightly would be a serious mistake by India.

Shares of major IT companies ­- TCS, Infosys, Wipro, and HCL have delivered lackluster returns since their post pandemic rally. Since Covid high valuations amid deal pessimism were a concern. Now those worries are amplified by AI and the disruption it brings to their business models. Software exporters remain the worst performers, the Nifty IT index is down 18% year-to-date, underperforming the broader index consequentially.

The recent release of Q1 fiscal year 2026 numbers from these four IT companies have been met with skepticism regarding forecasted outlook. Analysts noted that Indian IT firms are grappling with margin pressures amid persistent macroeconomic headwinds and rising threats from AI-driven productivity improvements. In response, companies have started to protect their margins with layoffs, TCS (Tata Consultancy Services) shed around 2% of its workforce this past weekend which could affect more than 12,000 jobs.

Time For India’s IT Sector to Become Proactive

Pricing models that IT companies charge customers are changing from long to short-term flexible contracts like ‘pay as you go’ over traditional fixed annual licensing models. Despite changing CEOs in several of these companies over the last few years, animal spirits are failing thus far to innovate AI products that can enhance the bottom line. Instead, companies prefer share buybacks and paying stellar dividends to appease the shareholders rather than to invest in R&D especially when their core model is under threat.

Hang Seng Index One Year Chart as of 29th July 2025

The euphoria surrounding India’s $5.4 trillion equity market is cooling in 2025, amid concerns over slowing earnings growth, elevated valuations, and tariff related uncertainty. At the same time, sentiment towards Hong Kong’s listed Chinese shares are improving with global fund managers rapidly reallocating capital to that market. The Hang Seng Index has delivered an impressive 27% return year-to-date. Meanwhile, India’s stock market still lacks depth for investors seeking meaningful exposure to the booming Artificial Intelligence theme.

Indian IT companies excel at scaling and delivering AI solutions for global clients, but they do not own the core models, platforms, or consumer data needed to become true AI disruptors like China’s tech giants. The industry contributes approximately 7.5% to India’s GDP and remains the primary employment avenue for engineering graduates. It’s time for India’s IT sector to proactively address the growing AI threat posed by global competitors.

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Taco Trade Consideration: All about Accumulation Not Ego

Taco Trade Consideration: All about Accumulation Not Ego

Taco Friday is upon us. Fair or not the newly coined expression TACO – Trump always chickens out – is a rather savvy way of looking at current market perspectives. Day traders have run into a buzzsaw trying to speculate on daily gyrations, but investors who have the ability to accumulate based on valuations in equities, Forex and perhaps even commodities such as gold and WTI Crude Oil have likely enjoyed the choppy ride the past handful of months.

Nvidia One Year Chart as of 30th May 2025

Day traders who are betting on the daily whims of Forex or the stock markets have been participating in assets being stirred by a constant storm via behavioral sentiment shifts caused by White House rhetoric. President Trump has said the expression is mean. And in fact the Taco statement may be wrong all together, because what has gone down and back up, has also gone down again followed by additional reversals. But let’s put ego and wrong notions to the side for a moment. Because the important point about the Taco expression is actually about finding value.

Let’s consider that financial institutions have experience and skin in the game. The ability to buy stocks on lows and accumulate them based on a long-term mindset is likely going to prove correct. Consider Nvidia, it has suffered pratfalls, but continues to recover and pick itself off the floor and is now challenging highs again. Yes, the SP500, Nasdaq and Dow30 have all seen what can be described as whipsaw results. However, the optimistic notion that common sense rules and quality will prevail is a feature of investing. Blood on the streets as Warren Buffet has often said, is not a bad thing, it is an opportunity.

Nasdaq 100 One Year Chart as of 30th May 2025

Day traders attempting to time the markets have always experienced a great deal of pain when speculating on notions that ‘now is the time’. Patience often proves to be worthwhile in trading and investing. Anyone who claims they are constantly buying exactly on lows and selling on apex values should be treated suspiciously. Attempting to time highs and lows is a bit like gambling on sports without any inside knowledge, sometimes you win and sometimes you lose.

U.S Dollar Index as of 30th May 2025

In Forex the USD has been battered but continues to produce sudden violent price action. Today’s Core PCE Price Index from the U.S is expected to produce a 0.1% increase – which would be considered negligible by the markets. Fed Chairman Jerome Powell recently met with the President for the first time since Trump took control of the White House this term. The President is on the record as saying the Fed should cut interest rates now, this while Powell repeats the word ‘uncertainty’ repetitively.

Today’s inflation report is a vital statistical report for the Federal Reserve and will stir Forex. Perhaps, Jerome Powell should consider the Taco expression and understand that while talking tough Trump often is only expressing a strong stance to achieve a middle ground. If inflation numbers are near the forecasted outlook, the Fed should certainly cut interest rates sooner rather than later.

In the meantime, investors who have been accumulating stock on lower values and are playing a long game, may also be counting on ignition fuel being poured upon the markets to create a dynamic bullish run via positive impetus. Yet, even if profits are not achieved in the short-term, investors also understand they are being given an opportunity via the occasional outbursts from President Trump to take advantage of a rather delicious tactic.

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An Expanding Axis – Will Egypt and Pakistan Become Members?

An Expanding Axis - Will Egypt and Pakistan Become Members?

Opinion: The following article is commentary and its views are solely those of the author. This article was first published the 26th of May via The Angry Demagogue.

China seems to be taking advantage of the transition from the Obama-Biden appeasement based foreign policy to the Trump commercial based system. Whereas Obama-Biden had no problem punishing allies that dared to oppose the US-EU appeasement and woke revolution, Trump is looking to create alliances based on commerce – and threatens allies that don’t go along. While the Obama-Biden policy failed utterly and arguably caused the wars in Ukraine and the Middle East, the Trump administration seems to be playing for time as it restructures the global security order.

China however does not seem to care to wait and are stretching their sway not only in the South China Sea but westward towards the Middle East. The four member Axis – Russia, China, Iran and North Korea seems to be expanding to other countries with strong military dictatorships. Egypt and Pakistan will be the next members of the Axis. While much of China’s belt and road policy deals with bankrupting poor, weak countries, they seem now to concentrate on strong military dictatorships. Egypt and Pakistan are being pried from the western camp as we speak.

Pakistan has, for awhile not been firmly in the western camp. It was a cold war U.S ally as India, while democratic, sided with the Soviets on most international issues. While the US was busy in Afghanistan, the Pakistanis played double agent. Now that the U.S is not in the region and the U.S and India have become closer, Pakistan is now firmly in the Chinese camp.

In addition to Pakistan, Egypt becoming the next major member of the Axis.

Let’s take a few steps back and examine the burgeoning relationship between Egypt – a military dictatorship and Communist China. As we have written China and Egypt had joint military maneuvers that included deliberate violations of the Egyptian-Israeli peace treaty guaranteed by the United States. Egypt, in thumbing its nose not only at Israel but at the United States, allowed Chinese planes to approach the Israeli border in order to test Israeli reaction to a possible invasion. Multiple Chinese military cargo jets flew in undisclosed hardware in the days leading up to the maneuvers.

Three more Chinese Y-20 cargo planes landed in Egypt last week again, carrying unknown hardware. At least one of these planes came from Pakistan. Egypt also seems to be signing major arms deals with France as Macron reeks of desperation in his attempt to remain relevant – but a de Gaulle he is not, and he will not be able to create a force or policy independent of the U.S. Egypt will be glad to take advanced French weaponry while it creates a stronger alliance with China.

Back to Pakistan one has to wonder if the Pakistan-Indian flareup a prelude to what can happen in other theatres – or worse, a purposeful conflagration to test Chinese weapons systems in actual combat and keep the West on its back feet? According to most reports they were able to shoot down between 3 and 5 of France’s most advanced Rafal fighters without even entering Indian territory. The confrontation started with a heinous terrorist attack against Indians in Kashmir by a terror group associated with the Pakistani armed forces. India claims that Pakistan is directly involved in the attack. If so, this would not have been the first one.

The downing of the Indian French built Rafal fighters by Pakistan’s Chinese produced 10-C was, according to expert reports, not just or even mainly superior piloting but with a Chinese strategy and technology that includes all aspects of air power – including recognition of the target, locking on and attack from distances in what an American air expert called a perfect air based killing machine. This would seem to be the first real test of Chinese advanced air-power and it something that needed to be done before any invasion of Taiwan. This may not test their own pilots but it does test the strategy and the technology.

China has a main medium term goal here and it is not a secret. They are planning to take Taiwan by force and need to make sure their soldiers, sailors and hardware are up to the job. They have seen how poorly the Russian army has performed and have seen how Israel has dismantled Iran’s defenses and swatted away Iran’s offensive attacks. China has not fought a major war for decades and for all the advances they say they have made – all have been untested. Until now.

China will not risk a war with India itself but would be more than happy to have its proxy involved. Chinese fighters and their new “over the horizon” missiles are key in their plans to deter the U.S from defending Taiwan – or in defeating U.S naval airpower if the U.S does get actively involved. However, as close as French technology is to America’s it is not the same and the one country that seems to have taken U.S technology to the next level is Israel. How would Chinese weaponry due against American arms in the hands of an air force equivalent in skill and bravery to the American air forces? That has yet to be tested but that brings us back to Egypt. Is it in China’s interests for Egypt to make a major break with the U.S at China’s urging much as they made a break with the Soviet Union at America’s urging? Of course. Would that mean that China might help Egypt provoke a military confrontation with Israel in order to test Chinese arms and relieve pressure on Iran? Maybe.

On to Iran then, where it does not seem that the Americans or Israelis understand the nature of the Iranian-Chinese relationship. Not only does China get the bulk of its oil (subsidized) from Iran but they have just completed a rail link from Xinjiang, China to Teheran, Iran – running through four countries. This rail line can ship oil as well as other cargo, cutting into the American (and Indian) naval superiority around the Persian Gulf and Indian Ocean. The assumption by military planners has always been that the U.S can cut off Chinese access to oil, if necessary. That is no longer the case.

China is not standing still – they are expanding their axis of dictatorships to countries in which the army is in control. Pakistan and Egypt qualify. Iran, while a theocracy is controlled by the Iranian Revolutionary Guards. No matter the “deal” that the Trump administration negotiates with Iran they will not be pried away from Iran. China has more to offer an ideological dictatorship then commercial deals with the United States. What the alleged realists in foreign policy refuse to understand is that dictatorships have no interest in commercial success if it weakens their grip on power. They are interested in deals that enrich their regimes since that also strengthens their grip on their people.

The trillion of so dollars in deals that the U.S has now made with the Persian Gulf states ensures that America remains a player in the middle east. Those who think that the Mideast is a tertiary region at best – after Asia and South America – need to rethink their strategies. As China closes in on control of the world from the Pacific to the Mediterranean the U.S is left with just two military powers it can depend on – Israel and India – to help defend its old/new commercial interests. It is not only oil – it is not Boeing jets, Nvidia chips and many other products that are moving from the US to the Gulf as opposed from the Gulf to the U.S. The U.S is no longer a commercial client of the Gulf states but the country who needs to protect its clients. The relationship has changed but the security relationship has only gotten more important.

The addition of Egypt and Pakistan to the Axis means that the Chinese threat has expanded. They are not giving up on Taiwan, nor are they giving up on South America and the Pacific Ocean but rather, China is using its experience as a dictatorship to strengthen ties with other freedom hating countries. We can all pretend that values and culture don’t matter, but that doesn’t mean that they don’t. This Axis is one where the interest of each member is to stay in power, force its will on its people and enrich itself at the expense of its people. This is an Axis, not only of the unfree, but of those who need to eradicate freedom to “thrive”.

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/ 

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Nasdaq 100: U.S Exceptionalism and Competition from China

Nasdaq 100: U.S Exceptionalism and Competition from China

Nasdaq 100 Six Month Chart as of 28th January 2025

The losses on the Nasdaq 100 yesterday were bad. Wall Street participants were reminded that technology is and always has been a competitive landscape. It is rather remarkable that the lesson being given to capitalists came from China which is led by a Communist government. U.S Exceptionalism which has been spoken about in loud tones the past week because of President Trump’s return to the White House has been put on notice.

There will be additional bad days on Wall Street, but the idea that the Nasdaq 100 now faces an existential threat from DeepSeek is farfetched. Traders must take a healthful breath and remember yesterday’s loses while bad were not catastrophic. Premium froth from Nvidia and other companies saw some of their likely overvalued worth selloff on Monday. Perhaps more will follow today, but tech and innovation companies have always faced a competitive landscape.

Was yesterday an indication there is a crack in U.S Exceptionalism via technology that is going to be long lasting? Companies must always compete to be the best, if DeepSeek’s entry into the news cycle was a ‘sputnik’ moment as some claim, folks need to remember the U.S bounced back rather nicely and eventually outpaced the Russians – who still remain a tech competitor regarding rockets and space.

This weekend’s news from China has provided another moment the world realizes technological gains are often hard fought. While many media pundits act with hyperbolic noise and state vivid concerns about the future of the technological competition between China and companies around the globe, the race for innovation has and always will exist.

AI for the moment is grabbing the headlines, but Artificial Intelligence is also a buzzword – it is marketing usage by those who are trying to entice investors with big promises, except machine learning has been around for decades. Progress the last few years has been significant, but AI isn’t ready to make humans into a new species. Competitive battles in equity markets centering on innovation via semiconductors, quantum computing, robotics, IoT, biotech, transportation, and other sectors have been relevant and will remain this way.

Monday’s results on the Nasdaq 100 and harsh falls for some tech giants like Nvidia is a reminder that while speculating and investing in one company is a potential way to make solid returns, investing in indices and a large group of diverse companies often produces steadier yields. Yes, yesterday’s losses on the Nasdaq 100 were bad, but they were less critical compared to the losses Nvidia suffered. And let’s remember Nvidia will survive yesterday’s declines.

After Monday’s Nasdaq 100 decline, today will prove a another test of sentiment. Premium froth in companies such as Nvidia that sold off, will now cause people to question fundamental analysis of tech and innovation. Bubbles sometimes burst. The remainder of this week will be a solid test of behavioral sentiment. A battle between large speculators and investors will also be seen. Those who plan on cashing out of the market near-term to book profits may find that investors with long-term ambitions still win the race.

Perceptions are constantly being shaped, we should always be questioning the ability of technology which is proven versus marketing mayhem that is hot air. Artificial Intelligence has had a gravitational pull on the investment landscape. The froth created by investment into the AI sphere is important, but it only one part of many combined technologies constantly developing.

Many companies claiming they are AI centric have no real basis to make the statement. Semiconductor companies have led a lot of the gains in Nasdaq’s run higher because they are the ones supplying micro processing to companies that need the technology to build machine learning capabilities, China has always been a competitor and yesterday provided a wake up call for those who forgot. A dose of reality has been delivered once again to Wall Street.

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AMT Top Ten Miscellaneous Concerns for the 6th of October

AMT Top Ten Miscellaneous Concerns for the 6th of October

10. Ya Gotta Believe: The New York Mets are finding ways to score in the late innings. Having won with last minute runs against the Atlanta Braves in the 8th and 9th innings early last week to save their season, hitting a home run to take the lead against the Brewers in the deciding game of the Wild Card in the 9th, and last night’s 5 runs in the 8th to take the lead in Game One against the Phillies in the Division Series has been rather remarkable. Game two between the Mets and Philadelphia will be played later today.

9. Information Technology: OpenAI’s value is now estimated around 157 billion USD, this after their latest round of investments garnered that includes both Nvidia and Microsoft funding. The search engine arms race will continue to get tougher and more competitive, but recent data released by Statcounter shows that Google still has over 90% of the U.S search engine traffic. While it has lost some ground in the search engine battles to upstarts statistically, Google remains dominant. Microsoft has made inroads with Bing, and Yahoo has also gained, but Google’s stranglehold via browser usage remains strong.

8. Helene Meets Milton: A pair of hurricanes – this if Milton fulfills forecasts and becomes a major storm – are not helping create easy days in the U.S Southeast, nor for the Biden administration. Criticism regarding a lack of government help has been heard in the aftermath of Helene and with another potential punch about to be delivered by Milton, U.S relief agencies like FEMA will certainly be pushed to the limit organizationally.

7. Oil Alerts: WTI Crude Oil went into the weekend close to 75.00 USD per barrel as nervousness increased about the potential of an attack on Iranian oil infrastructure. While many nations in the West do not purchase Iranian Crude Oil openly, the Iranian commodity is sold to China at nearly an 89% ratio. This allows oil from other suppliers like Saudi Arabia, the U.S and Mexico to sell elsewhere and the price of Crude Oil to remain relatively tame. However, if the supply of Iranian Crude Oil were suddenly to be crippled for any length of time, the price of the commodity from the other major suppliers would certainly go higher if expanded demand needs to be met. Speculators should pay attention to strike prices in the energy sectors via options trading in the future markets to understand potential vulnerabilities that large players may be anticipating.

6. Precious Metal: Gold prices remain within sight of record values, but below the apex values seen on the 26th of September. Risk sentiment, speculative forces and long-term investors are seemingly creating resilient support levels. Gold went into this weekend near the 2,653.00 USD ratio. Silver remains near 32.00 USD per ounce, which is where its price was traversing in May. Speculators intent on betting that silver will rise because nervous market conditions will create more demand need to be careful. A vast supply of silver exists in known mines globally, and producers simply need to extract more of the commodity to garner profits which is relatively easy. In other words, gold and silver do not correlate as much as some people believe.

5. Forex Chaos: Day traders of USDJPY, NZDUSD, EURUSD and a slew of other major currency pairs were taken on a wild ride last week as USD centric strength surged and fragile conditions in global markets grew. The coming days will remain difficult for FX retail traders as they face a whirlwind of threats. Technical and fundamental traders are being hit by shifting winds generating via a myriad of worries. Speculators without deep pockets are advised to remain cautious in the coming days because trading dynamics are not likely to ease. Yes, there will be price velocity which allows for quick profits, but those who are willing to bet on the prospects of fantastic gains must also accept the dangerous proposition that wildly expensive losses if they are on the wrong side of a trade are equally possible. Brokers will certainly welcome their clients with open arms this coming week because the volatility may entice many with the potential of getting rich. However, brokers will not tell you about the poor house on the other side of the street.

4. Unscripted: There are a little more than four weeks before the 2024 U.S elections on the 5th of November. Trump appears to be gaining momentum in polls, but certainly remains vulnerable per his ability to speak without a script and create verbal firestorms. Kamala Harris ran into problems recently with a suspected malfunctioning teleprompter and her inability to escape repeating the words ’32 days’. While the two candidates battle for voter supremacy, questions persists about the current leadership from the White House and who exactly is running the show.

3. Noisy Data: The Federal Reserve and economic data remain concerns. This Thursday the Consumer Price Index data will be released. If the inflation statistics can come in below expectations this may soothe financial institutions who have leaned into the notion the Fed needs to remain aggressive in November. Another interest rate has been expected, but some are nervous the Fed may not be able to cut as fully as wished. However, day traders need to also understand politics are playing a role in the bombastic soundbites being generated by the media, this as they try to deliver messaging which reflect their viewpoints. If inflation numbers remain under control the mid-term outlook continues to point towards more interest rate cuts. While the U.S jobs numbers on Friday were better than expected it should be noted revisions downward were seen again. There is one more Non-Farm Employment Change report before the election, by then it will probably not have an impact on potential voters, but its affect on the Fed will certainly be felt.

2. End Game: As the Iranian and Israel conflict escalates and threatens to become a dark spiral, some are still hoping for an avenue which will allow normality to return. That appears to be wishful thinking for the moment. Reports, perhaps paranoid, regarding an earthquake in Iran yesterday with a magnitude 4.5 seismic rating which was 48 kilometers from Semnan was noted by the USGS. The reason why it is potentially scary notion is because some are questioning if this was a nuclear test being conducted by Iran.

1. Risk Adverse: A trifecta of nervous behavioral sentiment is shadowing the financial markets via Fed outlook, Middle East tensions, and the approaching U.S election. Unfortunately none of these components are likely to disappear soon and in fact may grow in stature as outlooks potentially create more anxiousness. Safe havens in the USD, gold and U.S Treasuries may find they deliver some calm for those that are nervous. However, it must be noted that U.S equity indices gained nicely late last week after gains on Friday. The Dow 30 and S&P 500 remain near apexes and the Nasdaq Composite is within sight of highs. In other words, for all the talk about dark days, financial markets and investors are still active.

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AMT Top Ten Miscellaneous Notions for the 30th of August 2024

AMT Top Ten Miscellaneous Notions for the 30th of August 2024

10. Ellis Park, Johannesburg: The Springboks will face the All Blacks on Saturday in round three of the Rugby Championship. One of the greatest rivalries in sports will match South Africa who is looking to cement their current team’s legacy as one of the best rugby squads ever, versus New Zealand who is looking for revenge having lost to the Springboks in the World Cup Final in October 2023.

9. Labor Day: Short-term speculators should be mindful that today’s volumes may be thin due to U.S financial institutions allowing employees to leave early for a long weekend. While all the major U.S exchanges will be operating, transaction volumes will become lackluster as the day progresses with the last U.S summer holiday approaching.

8. Precious Future: Gold is traversing around 2,520.00 USD per ounce this morning, as Bitcoin is near 59,500 USD as of this writing. The precious metal was around 2,000.00 much of February, while Bitcoin began flirting with 59,000 and 60,000 in late February after starting that month near 43,000 USD. While influencers proclaim the future is digital with Bitcoin, Gold continues to shine and has a historical track record as a store of value.

7. Pavel Durov: The CEO of Telegram was released on Wednesday after posting 5 million EUR as bail, he must stay in France and faces a handful of charges. Russia, the UAE and high profile people, including Elon Musk, have publicly criticized France for Durov’s arrest last Saturday. Free speech advocates are largely against the arrest of Durov, while France contends Durov has not been forthcoming about data which has been shared on Telegram to conduct criminal enterprises. Julian Assange was arrested in 2019 in Britain and was only released in June of this year, promptly leaving for Australia.

6. Commodities: The price of WTI Crude Oil is near 76.00 USD and remains in a fairly stable range, Cocoa remains within sight of 9,000.00 as it trades around 8,950.00 this morning. And the prices for Coffee via Robusta and Arabica continue to flirt with apex highs. Day trading wagers on these commodities should be done carefully before the U.S holiday.

5. Art of Speaking: Kamala Harris is being criticized for her reliance on teleprompters as some pundits wonder loudly when she will sit for an unscripted interview. Donald Trump faces continued scrutiny for speaking extemporaneously, and everyone knows this characteristic is not going to change. The race for the White House appears tight. The televised debate between the candidates remains on the schedule for the 10th of September and its format may present the opportunity for verbal fireworks.

4. Eastern Europe: The Russian-Ukrainian war has been escalating the past few weeks as both sides appear to be working with the belief they need to create facts on the ground over the next few months. The potential of a victory by Donald Trump in the U.S may be pushing Russia and the Ukraine into a mode which hopes they can bolster their respective negotiating positions, this if the newly elected U.S President can get the warring sides to discuss an endgame.

3. China: The nation faces difficult economic circumstances and tries to maintain stability via Yuan and bonds interventions. Also, the foreign policy stance of China is growing tensions with the Philippines. The long standing disagreement about Taiwan’s sovereignty is well documented, but Chinese naval activity in the South China Sea is raising alarm bells among some political analysts. Manufacturing PMI results will be published by China early on Saturday. Economic data from the nation is being inspected by foreign investors carefully who are looking for long-term yields, but are troubled about transparency and the potential of sudden policy changes.

As an aside, APEC will conduct its annual meeting in November from the 10th until the 16th in Peru. Both Joe Biden and Xi Jinping will attend. Depending on Biden’s health and the outcome of the U.S Presidential Election on the 5th of November, this Asian-Pacific Economic Cooperation Forum will prove important.

2. U.S Data: Jerome Powell’s capitulation last Friday via his public statement that the Fed needs to cut interest rates fueled a weaker USD. Forex has seemingly priced in a combined 0.50% basis cut via the Fed for September and November. Yesterday’s stronger than anticipated U.S GDP growth and inflation reports however created headwinds, which caused outlook jitters. Today’s Core Personal Consumption Expenditures Price Index monthly gauge is expected to come in with a gain of 0.2%. If the inflation report can match the anticipated result this may calm Forex, equity indices, and Treasury yields before going into the long holiday weekend. Next Friday U.S Non-Farm Employment Change numbers will be published. Today’s trading may be muted because of thin volumes, but day traders should expect volatility to increase starting next Tuesday.

1. Competition: Nvidia was valued around 47.50 USD per share this time last year, as of today the price is near 117.60. Intel’s value was approximately 34.50 USD this time last year, as of today the price is about 20.13 per share. Intel appears to be valued as a commodity supply company nowadays by some investors, while Nvidia’s outlook remains within the auspices of a highly anticipated technological future. Where will both companies values be this time next year?

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AMT Top Ten Miscellaneous Fireworks for the 5th of July 2024

AMT Top Ten Miscellaneous Fireworks for the 5th of July 2024

10. Grudge: Ireland and the Springboks begin their rugby two match competition this Saturday in Loftus Stadium, Pretoria. Anticipation is palpable in South Africa. The weather is forecast to be good and the game is expected to be better. The battle between the Green Machines is real. The second game will be played on the 13th of July in Durban.

9. Digital Jitters: Bitcoin is trading near 54,300.00 USD as of this writing. As analysis filters in to explain this particular downturn which essentially began on the 7th of June, the fact is that BTC/USD has become a playground for institutional gamblers while many in the public remain dubious. Excuses such as the U.S election potential outcome and Fed monetary policy are all likely false narratives. Speculation is your answer.

8. Correlations: The USD/ZAR is near the 18.20500 mark, and the USD/MXN is around 18.06000 as of this morning. The South African Rand and Mexican Peso are not correlated, except as currencies that are witnessing a strong amount of political sentiment generate trading behavior in financial institutions which are trying to judge their long-term outlooks. The coalition National Unity Government of South Africa, and the Morena political party of Mexico are in the spotlights and are being watched by anxious investors.

7. National Security: The race for quantum supremacy is real as nations issue significant controls over the export of computing mechanisms to unfriendly competitors as reported by the New Scientist website recently. And the smuggling of semiconductors which are ‘forbidden’ to China who are using organized underground operations in order that Nvidia AI processors can be obtained, was reported on by the Wall Street Journal two days ago.

6. Commodities: WTI Crude Oil is trading above 84.00 USD, the energy has sustained prices above $80.00 since the 17th of June and is approaching mid-term highs, the slight rise in price earlier this week may have been because of hurricane concerns, but buyers have remained strong this morning. Cocoa is still traversing around 8,456.00 USD per metric ton, as it bounces along mid-term technical support levels. In early January of this year Cocoa was trading at half its current value.

5. Jobs Numbers: One of the favorite tools used by salespeople to get day traders geared towards speculating blindly are the monthly U.S Non-Farm Employment Change numbers which will be published today. But because of the U.S Independence Day yesterday, many financial institutions are celebrating a long holiday weekend and will be mostly inactive. Data has become increasingly lackluster from the U.S the past two months with rather pessimistic GDP, PMI manufacturing and services outcomes. Traders considering a dip of their toes into the markets today should be aware that volumes are going to be low which opens the door for volatility. Who will be paying attention to the Average Hourly Earnings report?

4. Markets: U.S Treasury yields are within sight of three month lows, this as the major stock indices via the S&P 500 and Nasdaq 100 make noise at record highs. The Dow 30 is not at a high but within a healthy territory as bullish behavioral sentiment remains rather abundant. When full trading volumes return next week, there is reason to believe the summer rally may continue.

3. Bank of Japan: The USD/JPY is trading below the 161.000 level. Some analysts suspect the BoJ engaged in a limited intervention earlier this week when the currency pair approached the 162.000 vicinity. The Bank of Japan is playing a dangerous game with speculators. The next BoJ Outlook Report is not due until the 31st of July. Until then the USD/JPY apparently is going to traverse in a higher price range with the threat of a potentially engaged Bank of Japan lurking which can punish speculators if they get too comfortable betting on the bullish trend. The price of Gold should be watched as it traverses around 2,365.00 USD, which remains in sight of record highs that touched the 2,425.00 vicinity on the 20th of May. Retail purchasing of gold in Asia is strong as citizens of some nations try to hedge against inflation.

2. Fallout: The Presidency of Joe Biden remains vulnerable as media pundits who have long supported him lurch towards public criticism, and question Biden’s inability to handle unscripted situations. Talk of replacing Biden with another candidate to face Donald Trump remains fever pitched, but there are strong obstacles which will not allow an easy path to unseat the current President. Biden owns his delegates won via Primary voting. He would have to officially relinquish his delegates at the Democratic National Convention in order to allow for a new candidate. The Democratic political party also knows that Vice President Kamala Harris is not particularly well liked, but if Biden were pushed to the side it would open the door for a potentially messy challenge by Harris who would certainly want the Presidency. Getting her to bow out of the race could be another potential disaster for the Democrats, and help create a level of disdain which could trigger a huge landslide for the Republicans in November.

1. Trouncing: Political incompetence is not only a stronghold in the U.S, this as the U.K and France are proving. The GBP/USD is near 1.27685 as of this writing, the EUR/USD is around 1.08230. Both currency pairs have gained this week. The massive defeat of the Conservatives in the U.K last night, and Macron’s political weakness which may increase after the 2nd round of voting this coming Sunday in France has been digested by financial institutions. The GBP/USD and EUR/USD were punished over the past few weeks due to knowledge that the Tories in Britain would suffer a resounding humiliation, and the belief that Macron opened the door for a loss of clout. Financial institutions have proven they are keen observers of politics and are accustomed to shifts of direction via new forces. Some may also say that financial institutions are comfortable as long as they know where power resides in the ‘deep state’ bureaucracies of every nation.

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AMT Top Ten Miscellaneous Wonders for the 12th of April 2024

AMT Top Ten Miscellaneous Wonders for the 12th of April 2024

10. Free Press: Brazil and the Lula de Silva government are cracking down on dissent in social media. ‘X’ – formerly Twitter – led by Elon Musk is fighting back and refusing to cooperate as Brazilian ‘leadership’ attempts to intimidate the ‘loyal opposition’ in the legislature.

9. GROOT: Nvidia is working on ‘humanoid’ robotics. Project GROOT was presented by Jensen Huang at the GTC Conference. The synergy between machine learning, semiconductors and robotics is an evolution taking place before our eyes. Tesla is involved in similar research as it works on Optimus.

8. Hot Chocolate: Speculation in Cocoa has brought the commodity above 10,400.00 USD per metric ton as of this writing. Questions about gravity and hypersonic speculative values are logical at this juncture.

7. Seclusion: Do humans still need each other? People are relying on their mobile devices for social interactions. Robotics with AI capabilities will make our existence potentially more lonely. Open source software DOBB-E will be part of this future as household chores are taken care of by ‘machines’.

6. Iran: Those with holiday excursion plans which include Teheran this weekend may need to check on ticket availability due to the possibility of flight cancellations.

5. Fed Liberty: President Joe Biden this week spoke about an interest rate cut coming from the Federal Reserve this year, yet Consumer Price Index statistics are demonstrating escalating expenses. Current U.S government leaders may want to spend less on ‘vote buying’ via student loan forgiveness and think about conservative fiscal practices. Why should Americans who choose not to attend universities pay for those who did via higher taxes? Are Fed and Treasury officials still independent?

4. Risk Averse: Gold is within sight of 2,400.00 USD this morning. In the meantime U.S bond yields have inverted completely except for the 30-Year issue. Financial institutions are showing nervous behavioral sentiment.

3. USD Centric: Forex has seen reactive trading this week as financial institutions begin to conclude the U.S Federal Reserve’s monetary policy ‘over time’ will remain disturbingly difficult and full of doublespeak.

2. Caution: Mixed results are flourishing in the major U.S stock indices as the Nasdaq 100 and S&P 500 touch late March values, and the Dow Jones 30 has returned to February levels. Higher than anticipated interest rates are causing turbulence.

1. Energy Illusions: As the prices of food, transportation and housing escalates isn’t it time governments start to question their ‘green’ policies which are making the costs of energy production more expensive? We all want a clean planet, but logical strategies must be applied to create efficient use of resources.

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Forex and Equities Storm: Crucial Data will Impact Markets

Forex and Equities Storm: Crucial Data will Impact Markets

Today will start out with a rather important consumer report from the U.S and day traders should stay alert. It is easy to point to every day and week as being a crucial circumstance for speculators, because that is what gets their juices moving and gets them to wager in the markets.

However, given the rather choppy conditions in Forex seen since the last week of December and pointing to the results of the Consumer Price Index on the 13th of February and the storms created in FX, traders hopefully have enough muscle memory to remember how they felt in the midst of the whipsaw conditions which were experienced only two weeks ago.

Central bank outlooks are fragile among analysts and financial institutions. Simply put this week’s data could prove to be more important than the CPI numbers. Consumer sentiment, GDP, and inflation statistics are all on the U.S roll call this week.

Other geographies will make news too and impact global markets. Last week’s impressive results from Nvidia created another massive wave of positive momentum in equity indices. The Nasdaq 100, S&P 500 and the Dow Jones 30 all have hit record values. Japan’s Nikkei 225 has surpassed record heights.

Yet, other barometers do highlight caution abounds too, U.S Treasuries yields have edged upwards and are touching values which show there is nervousness regarding monetary policy from the U.S Federal Reserve. This week’s data will deliver more insights for investors, and Treasuries are certainly going to react to the economic reports.

Gold One Month Chart as of 27th of February 2024

Gold has edged higher in the past week and is around the 2034.00 USD mark as of this writing. The slight climb above the 2020.00 ratio which has worked like a magnet recently, indicates some traders may be leaning optimistically towards a weaker USD mid and long-term. These folks may be proven correct, but day traders should note that the 2030.00 ratio in gold is below highs seen in December, January and early February – which indicates nervousness. If day traders do not believe gold acts as an inverse barometer for the USD, simply look at the results of trading when the stronger than expected CPI numbers were released on the 13th of February. Gold fell to a low near 1985.00 on the 14th, this was not a coincidence.

Again, while it is easy to sound alarms and jump up and down and proclaim every week important for day traders, the acknowledgement that this week’s economic data is significant should not be treated as hyperbole. You have been warned.

Monday, 26th of February, U.S New Home Sales – yesterday’s results showed another decline in the housing market, and the previous month’s number was revised downwards. The outcome may point to concerns about U.S mortgage rates which remain stubbornly high for those considering purchases.

Tuesday, 27th of February, U.S Durable Goods Orders – a rather large drop of minus -4.9% is expected. The Core data however is expected to produce a rise of 0.2%. These numbers will be a good precursor for the important consumer sentiment which will follow one and a half hours later.

Tuesday, 27th of February, U.S Consumer Confidence via the Conference Board – the results of the important readings have shown intriguing gains since late fall in 2023. While improvement in sentiment has been recorded, revisions lower have also been seen in the previous three reports. The outcome of today’s report should be treated carefully. If another higher reading is produced this may create some positive momentum in the USD momentarily.

NZD/USD Three Month Chart as of 27th February 2024

Wednesday, 28th of February, Reserve Bank of New Zealand Official Cash Rate and Monetary Policy Statement – while many Forex traders will be sleeping when the RBNZ makes its important pronouncement, New Zealand inflation data has remained strong and a conservative government is in charge politically that is pro-business. The question is if the Reserve Bank of New Zealand will go against the grain of other global central banks and actually increase their interest rate while others seem to be adamant about trying to become less aggressive. While many analysts believe the RBNZ will sit on its hands and act according to the whims of others, if an interest rate hike is announced global Forex traders should take note because it would be a signal that central bankers are uneasy regarding their rhetoric and not in agreement.

Wednesday, 28th of February, U.S Preliminary Gross Domestic Product – a gain of 3.3% is the expectation from many analysts. The previous reading was stronger than anticipated. If growth numbers in the U.S come in higher than estimated the USD will react with strength. The Federal Reserve would like to see the outcome meet the expectation or come in below, this so the U.S central bank can consider reducing the Federal Funds Rate late this spring or in early summer. However, if a significantly strong growth number is demonstrated this would cause turmoil in Forex.

EUR/USD Six Month Chart as of 27th February 2024

Thursday, 29th of February, Germany Preliminary Consumer Price Index – a slight gain is expected in the inflation number. The EUR/USD has been struggling as stagflation concerns shadow the European Union. A higher inflation result will not be welcomed by the ECB, which would prefer to cut interest rates sooner rather than later. The German number should be watched and it will cause an impact if there is a surprise. The EUR/USD has been turbulent and is likely to produce more choppy conditions depending on the parade of data results this week.

Thursday, 29th of February, U.S Core Personal Consumption Expenditures Price Index – traders who have felt the previous economic reports already have caused intense reactions this week should brace for this inflation report. A result of 0.4% is expected. The Federal Reserve admits this is one of the most important publications that it monitors. This means financial institutions react to this report too. If inflation were to come in higher than expected, like the CPI results from two weeks ago, this would essentially kill off expectations of a May interest rate cut from the Fed. The USD will react to this report and so will U.S Treasury yields, which means equity indices will also be affected. A weaker inflation report is being wished for by many market participants, but will this be the result?

Friday, 1st of March, China Manufacturing PMI – not to beat a dead horse, but China’s economic data has been poor and this report will be viewed as important. Another negative outcome is expected. Transparency regarding economic numbers from China is a worry for investors. Conditions in China are being watched and it is important for traders to eliminate bias regarding their perspectives. China may be struggling, but its importance as an economic power is still very much in evidence. Foreign direct investment into China is diminishing, but plenty of investors still have ‘skin in the game’ and will be affected by the manufacturing reports.

Friday, 1st of March, U.S Manufacturing PMI via ISM – a slightly improved manufacturing reading is expected. However, because of the U.S data releases from the previous days, the results may be looked at only momentarily and not cause much of a reaction from market participants. Traders may be looking forward to the weekend after this week’s economic publications in order to rest.

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AMT Top Ten Miscellaneous Sunrays for the 23rd of February

AMT Top Ten Miscellaneous Sunrays for the 23rd of February

10. Word of the Day: Abeyance – the state of suspending something until another issue is resolved. Can you say, “Central Banks”……we knew you could.

9. South Africa: National election is scheduled for the 29th of May. Will the disdain the ANC and EFF have for the ‘West’ be addressed by voters or will the masses elect the usual suspects?

8. China and Germany: New Home Sales prices dropped again in China per data released this morning, Germany’s GDP data published today shows negative growth and recessionary pressures growing.

7. Nvidia: Their quarterly earnings report this week showed Artificial Intelligence isn’t a mere marketing tool, but a moneymaker opening a new era for technology.

6. South Carolina: Nikki Haley apparently will lose the Republican Primary in her home state tomorrow, but likely stay in the presidential race hoping that Donald Trump implodes via his own ego or legally.

5. Don’t Touch that Switch: AT&T believes yesterday’s widespread phone outage was caused by human error, not a hack.

4. U.S Equity Indices: Timeframes and patience remain crucial for investors amidst daily gyrations, this as the S&P 500, Nasdaq 100 and Dow Jones 30 explore record values.

3. New Zealand: Will the Reserve Bank of New Zealand go against the grain and actually raise its Official Cash Rate next Wednesday to fight stubborn inflation, or capitulate to the wait and see approach of ‘others’? The NZD/USD should be watched.

2. Caution: Forex remains choppy, U.S Treasury yields have crept slightly upwards, gold is hovering near 2020.00 USD. AMT’s #1 may be the reason why.

1. U.S Data Next Week: Preliminary GDP will be published on Wednesday, and Thursday will present the Core Personal Consumption Expenditures Price Index. The results could create massive impetus in all financial assets.