Monday am Technical Video
Stocks and bond yields lower, weakness in Europe and Asia, with Japan, S Korea and China benchmarks weakening, Miners the biggest laggards in Europe and both WTI and Gold are lower also. Casino stocks looking weak early on for US Markets.. In other markets, Cryptocurrencies showing their first evidence of trying to bottom out in over a month- Premkt movers in ADMP, FBIO, BLFS, CGEN, VMW, TRXC, CNAT, TSLA, GERN, HMY, UMC while on downside- MDXG, HMNY, NVTR, GEMP, LVS, CCRC, WYNN, ALV, AES, XCRA, FTI, SOGO, MLCO, HMI, HTHT, BZUN
Trend lower from mid-June but evidence of stabilization attempt over the last week- S&P’s overnight weakness has followed through on late Friday weakness, but at current levels , prices lie near the lows of its range, just above Support lows that have been in place in the last week. From a Risk/reward standpoint, owning S&P at 2705 with stops at 2693 and targets up near 2747 and then 2770 makes sense given the uptick in fear last week and traditionally bullish seasonal tendencies in the first part of the month- UNDER 2693, however, puts the threat of a larger selloff very much on the front burner.. so This level will have some importance
USDCAD- Canadian Dollar decline began in earnest about a month ago (shown here as the popular USDCAD cross)
And Dollar broke out vs the Canadian Dollar in early June above nearly a 2 year downtrend.. a meaningful move.
Now we’ve seen some backing and filling in the last week. The broader trend has grown more positive for USDCAD, thinking that Canadian Dollar decline continues as Trade war/tariffs loom
Dollar’s gains this am help it from breaking down right away, but trends have begun to wane a bit momentum wise after the Bloomberg Dollar index tested prior highs
Important to watch for when this either breaks this uptrend (which looks more likely ) or exceeds last week’s highs. Both Canadian Dollar and Mexican peso have weakened meaningful lately while Venezuela ‘s Bolivar down about 16% as its freefall continues.
Cryptocurrencies trying to bottom out as July gets underway-
Bitcoin Cash- For those with any interest in Cryptos these days, we’re seeing the first real sign of this trying to bottom out which happened over the weekend
Evidence of exhaustion per counter-trend indicators and could allow for a decent rally at a time when most risk assets have entered a new realm of volatlity