All Things Cryptos.Forex.Stocks — 04/20/2018 (Weekly Blog)
When you are following all 3 markets — Cryptos, Forex & Stocks like me, you definitely need some down time at the end of the week to refresh your brain, ponder at the lessons learned and look forward to a the next week with a fresh perspective… so let’s get going then! For those of you who are already bored of this, let me summarize it for you — Cryptos made a very healthy come back, the Greenback reversed fortunes against the Majors & Stocks ended Friday lower & the week flat.
The Crazy Cryptoverse
Needless to say it was one of the best weeks for Cryptos in months with an across the board recovery for Bitcoin & the Alt.coins. The HODLers out there like me are starting to see light at the end of the tunnel. It might still take digital coins some time to return to those all time highs but majority analysts and investors are of the opinion that the recent bear trend in Cryptos is coming to an end, more importantly the price action is supporting that thesis.
Scams are still abound in the #Cryptoverse however the biggest story this week was of Digital exchanges getting out of countries where there is uncertainty regarding Crypto acceptance to set up shops in places like Singapore, Switzerland, Estonia, Malta, Japan, Dubai, and the Cayman Islands who are much more receptive to this evolving phenomenon. Karaken, Binance, Coinone & Huboi are a few who have decided to make the shift.
Let’s talk some numbers now — total marketcap for the Cryptos rose to $382 billion from 312 billion showing money coming back with the BTC dominance dropping sharply to 38.0% from 42.6% — I see some happy Alt.coin owners! It seems like Bitcoin has become the safe haven digital currency in the Cryptoverse where as soon the bear trend ensues it’s dominance shoots up, however with the bull trend returning people tend to turn to riskier Alt.coins. Talking about the price action, let’s take a look at the Resistance/Support levels of the Top 5 Cryptos:
Bitcoin (bullish) — R1:$9200 R2:$10000 S1:$7800 S2:$7400
Ethereum (bullish) — R1:$640 R2:$700 S1:$530 S2:$455
Ripple (bullish) — R1:$1.08 R2:$1.20 S1:$0.71 S2:$0.55
Litecoin (bullish) — R1:$175 R2:$195 S1:$137 S2:$110
Bitcoin Cash(bullish) — R1:$1165 R2: $1300 S1:$850 S2:$780
INFO GRAPHIC OF THE WEEK:
USEFUL CRYPTO RESOURCES:
It was a USD reversal story in FX markets to end the week with the Greenback shifting gears — didn’t come as a surprise to me at least with the rising US yields (10-year is above 2.90%) & the risk off sentiment in the equities prompted massive inflows to the safe haven of the Giant dollar.
Looking at the Dollar Index (DXY) — it’s making higher lows albeit in the consolidation channel. Having said that the price action in commodity currencies & European Majors signifies a shift in the MT sentiment. If the Equities continue to cave in the coming days & weeks, it would certainly amplify the Dollar reversal & the Index can take out the resistance @ 91.00 level.
Sharp declines were seen on Friday in Euro, Pound, Aussie & Kiwi taking out major MT support levels. Loonie weakened significantly as well but held up better than the other counterparts against the USD. There is a tug of war scenario in USDJPY since on the one hand it showed Greenback gaining strength from higher yields but on the other side risk off helps Yen gain traction. Coming weeks will give us a clear picture of who comes out as the winner. Let’s look at the weekly price points for the 5 Major pairs:
RESISTANCE/SUPPORT PRICE LEVELS OF MAJOR FX PAIRS:
EURUSD (Euro) S3:1.2055 — S2:1.2192 — S1:1.2261 — R1:1.2398 R2:1.2466 — R3:1.2603
USDJPY (Yen) S3:104.92 — S2:106.08 — S1:106.72 — R1:107.89 — R2:108.42 — R3:109.59
GBPUSD (Pound) S3:1.3768 — S2:1.3986 — S1:1.4113 — R1:1.4331 R2:1.4423 R3:1.4642
USDCAD (Loonie) S3:1.2109 — S2:1.2384 — S1:1.2499 — R1:1.2774 R2:1.2934 — R3:1.3209
AUDUSD (Aussie) S3:0.7425 — S2:0.7583 — S1:0.7673 — R1:0.7831 R2:0.7900 — R3:0.8058
INFO GRAPHIC OF THE WEEK:
USEFUL FOREX RESOURCES:
U.S Markets started the week on a positive note but the Euphoria waned as the week progressed and all 3 indexes closed flat for the week. The decline on Friday was tech driven as Apple fell on lower guidance from the chip makers dragging the whole market with it. Facebook continues to dig itself out of the data leak mess while Netflix is worrying investors with all time high price valuations. This all might spell trouble for the Tech driven Bull run. Weekly numbers: DOW (+0.42%), S&P 500 (+0.52%), NASDAQ (+0.56%)
As if the tech woes are not enough, Financial stocks have also been falling despite the high interest rate environment & earnings beat causing concern. Wall Street Journal has reported the combined Q1 earnings of Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) rose by more than $2.5 billion but this was all in part due to the corporate tax cuts otherwise these big banks would have seen no growth to earnings declines from a year ago.
Looking at the SPX chart it looks like in a tight spot with the selling intensifying on Friday with an increased volume which is the worrisome part. A break of the 2660 level would spell trouble for the bounce from earlier lows & might spell the onset of another bearish run.
In other news The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is being introduced to track the Solactive Autonomous & Electric Vehicles Index. If you are a fan of electric/autonomous vehicles & want to bet on them than this ETF could be of interest to you. The list of companies as components of the EV/AV ETF include big names like Tesla, Apple, Microsoft, Toyota, Samsung, Honda, GM, Volkswagen, Alphabet, Ford, Baidu & Micron. #SeekingAlpha
Weekly picks for Stocks (bullish): TRU, AXP, CSX, FSLR, UMPQ
And finally let’s look at the IPOs priced this week: EAF($15.00), MOR($25.04), SURF($15.00), AGMH($5.00)
INFO GRAPHIC OF THE WEEK:
USEFUL STOCK RESOURCES:
Time to wind down and as usual some fun facts from history this past week (#Investopedia)
April 16, 2015: Online retailer Etsy held its IPO. Shares were initially priced at $16 and climbed to $30 at close. Although the company was valued at $3.3 billion following the IPO, the stock weathered a steep decline in the months following its debut.
April 18, 1933: President Franklin D. Roosevelt announced a plan to embargo exports of gold and let the US dollar float freely against foreign currencies in an effort to help banks restore liquidity after the Great Depression.
Until next week, you can follow me on TradeAlike app (@Fakd) to receive real time alerts on Forex & Stocks. I also post my trade ideas, stats & news on a daily basis on Twitter & StockTwits — “Trade Nut” signing off!
Originally published at medium.com on April 21, 2018.