No Shortage of Clues
Traders, while prices in the S&P's have broken above the 2000 level, they are not gaining any meaningful traction higher. As we all know, this rally is very deliberate and lethargic and there are certainly some warning flags. However, despite this, it is tough to build a bearish case absent some meaningful pull-back.
Some of the most recent chatter for the bears revolves around the Russell 2000/IWM and how recent weakness suggests underlying weakness for markets in general.
Chasing Tops - A Colossal Waste of Time
History however does not offer too much conviction in trading off these divergences. In fact only about 50% of divergences result in any meaningful market top.
I am not saying there are not risks out there to the market, however I have lived through similar phases before in my 20-years as a trader. Trying to pick the top is a colossal waste of time. Being a passive bull makes far more sense while making sure that I constantly take the pulse of the market so that when prices to begin to deteriorate, appropriate actions can be taken.
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AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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