About a week ago, a former member of the Elite Zone asked me whether or not he should spend money on an Indicator that he saw online.
Without getting into specifics about this certain trader and what I think that stands between him and success, I decided to dedicate this week’s Weekly Markets Analysis to address this question:
Do we need to spend money on Trading Products (specifically Indicators) that are being sold online?
I’m pretty sure that almost each and everyone of you was tempted at a certain stage to seek out for the “Holy Grail of Trading”. The magical tool that will solve all the problem that you have with trading.
If you relate to that – Watch this movie:
Trump’s Era has started
Trump’s Inauguration on Friday marks the start of a new era:
- Era of uncertainty – No one really knows what Trump’s economic plans are
- Era of volatility – Trump has shown already that he can create waves in the markets.
- Era of change – Trump criticized the Fed, now it is time to act.
Regarding the last point, it’ll be very interesting to see Trump’s interaction with the Fed and Yellen, in what could be her last year in office.
We’ve already started seeing some signs of this battle last week when the Dollar had strong bullish reaction to Yellen’s speech while Trump did exactly the opposite.
By being rejected from the 102$ resistance zone, DXY signaled that it is heading to re-test the 100$ psychological support zone. That is this week’s focus zone for the Dollar Index and the real test will probably be when the GDP numbers that will be published on Friday.
As long as $DXY remains below 102$ Forex Traders should probably continue to look for bullish opportunities on the Majors.
Pay close attention to 100$ should the price of the Dollar Index reach there. It can be very important next week’s FOMC meeting.
S&P 500 continues to float at All Time Record Highs
The Stock Markets are still in a waiting mode and $SPX continues to float at All Time Record Highs:
$SPX continues to trade between the Fast MA line (currently support) and All Time Record High (resistance). Keep monitoring the Fast MA line this week. As long as it holds there’s a chance that $SPX will burst higher.
The tight range that we see in SPX shows how cautious investors are. They aren’t willing to let go of the bullish positions but also not willing to add more.
Investors will continue to monitor Trump’s actions and words in his first week in office… but will also eye the Fed’s reaction in next week’s FOMC statement.
Besides Trump we also have earnings season in the background. So far earnings were the side show while Trump took the headlines but now focus may shift back to the companies. A blitz of huge earnings is coming our way with reports from MCD, GOOD, MSFT, F, YHOO and more.
GBP still in focus
GBP experienced one of the best trading week’s it had since Brexit.
As shown in the YouTube video, GBPUSD was one of the Elite Zone winners last week but it wasn’t alone.
GBPAUD was another GBP pair that we successfully traded last week:
GBP will remain in focus this week as the supreme court will rule on Article 50 and the fate of Theresa’s May hard Brexit.
If the bullish momentum will continue for GBPUSD than we could see it reaching the bottom of the broken weekly Wedge pattern (or its top). See the target zones marked at the chart above.
If the Supreme court will allow Theresa May to continue with Brexit without the Parliament… than we will probably see GBPUSD erasing all of last week’s gains and decline below 1.2 for the first time in 31 years.
That’s it for now.
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Till next week…