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Macro Strategy Weekly: 4 Fed Paths Decide Gold and Stocks Tonight! Which Strategy Wins?

Weekly Roundup 1. The Real Focus of the FOMC Isn't the Rate Move. It's the Treasury Yield Curve. Markets have largely priced in a 25-basis-point hike, so whether asset prices reprice sharply in the near term will hinge on how the Fed frames its future rate path and inflation outlook. The 10-year Treasury yield is closing in on 5%, and a decisive break above that level would weigh on both stocks and gold through three channels: valuation discounting, funding costs and risk appetite. What markets are really waiting on is whether long-term yields have peaked. 2. Beneath a Calm Surface, US Stocks Show Signs of Technical Fatigue. Market breadth is fading fast: only about 28% of NYSE-listed stocks are trading above their 20-day moving average, and the equal-weight S&P 500 has slipped be
Macro Strategy Weekly: 4 Fed Paths Decide Gold and Stocks Tonight! Which Strategy Wins?
avatarIvan_Gan
09-14 16:05

FOMC Preview: Watch Key Levels in U.S. Equities; Stay Alert to a Pullback in Commodities After Rally

Last week’s CPI release brought market expectations for a Federal Reserve rate hike into much sharper alignment. Following the euro area’s earlier rate increase and a 0.3% month-over-month rise in core CPI, markets are now pricing in roughly a 90% probability that the Fed will raise rates in September. Although core CPI came in marginally above expectations, the overall reading was not excessively strong. In particular, core CPI has not accelerated significantly even with oil prices approaching USD 100 per barrel. The market also generally expects the Fed’s tightening path to remain relatively gradual. As a result, a rate hike this week is largely priced in. Conversely, if the Fed unexpectedly leaves rates unchanged, the decision could be interpreted as a positive surprise and potentially
FOMC Preview: Watch Key Levels in U.S. Equities; Stay Alert to a Pullback in Commodities After Rally

Could Rate Hike Uncertainty Keep Markets Range-Bound? Three Ways to Track the Key Assets

Last night, in a futures livestream on the Tiger platform, I shared my latest views on the outlook for gold, Bitcoin, and offshore RMB amid expectations for higher interest rates. The core of this session was how to assess the direction of these assets through cross-asset correlations, while also covering trading strategy execution and adjustments to moving average parameters. Those who were unable to attend may watch the replay of our video course here: >>> 空前的高收益率壓力下,為什麼比特幣的低位機會卻很值得關注? Next, I will summarize the key information and trading-related views from the session, so that readers who did not have time to join can quickly unders
Could Rate Hike Uncertainty Keep Markets Range-Bound? Three Ways to Track the Key Assets

US Treasury Bond Purchases: Gold Surges, Dollar Plunges—But Is a Bull Market Really Here?

Last night, I shared my latest assessment of gold, equity indices, crypto assets, and the US dollar in the futures livestream room on the Tiger Brokers platform following the release of news regarding US Treasury purchases of government bonds. The central focus of the livestream was how to determine whether the market had shifted from a consolidation phase into a new trending phase by analyzing correlations among different asset classes. For those who were unable to attend, the replay of the video course is available below: Massive US Treasury Rescue Buying! Gold Surges, the Dollar Plunges: What Trading Opportunities Lie Ahead? I will now categorize and summarize the key information and trading-related insights fro
US Treasury Bond Purchases: Gold Surges, Dollar Plunges—But Is a Bull Market Really Here?

Are Asset Rebounds Near an End? How to Trade Bitcoin and Gold’s Key Levels

After the sharp pullback and subsequent rebound in the previous phase, major asset classes have returned to a relatively calm pattern. However, the fact that some assets have stalled should not be viewed as a positive signal. If they fail to extend their rebound or make new highs over the coming weeks, it may indicate that another leg lower is approaching. The first market to watch is crypto, which we have consistently treated as a leading indicator. Although its reference value has deteriorated meaningfully compared with one to two years ago, it has still shown signs of acting as an early mover in the current market cycle. Both Bitcoin and Ethereum rebounded sharply from late June, but have spent the past six weeks hovering near their lower ranges.
Are Asset Rebounds Near an End? How to Trade Bitcoin and Gold’s Key Levels

Nonfarm Payrolls: Two Trading Opportunities Near U.S. Index Gap Support?

Following the stronger-than-expected non-farm payrolls data, the market’s perceived probability of Federal Reserve rate hikes has continued to decline. The market now needs the next payrolls report to establish a new set of expectations. This means that, before the next data release, sentiment is likely to remain constructive. Even without a major trend, the market is likely to stay range-bound. (Note: Chart circulating via social media, original source unknown. Used for discussion purposes only. If you own this content, please DM for proper credit or takedown.) Over the weekend, there were further developments related to the Strait of Hormuz. The market has largely abandoned expectations for meaningful progress in negotiations, and there may not be significant movement even before the mid
Nonfarm Payrolls: Two Trading Opportunities Near U.S. Index Gap Support?

Watch Out For USD Bull Trap!? Forex Markets Hit a Tipping Point!

Geopolitical tensions in the Middle East saw renewed uncertainties over the past weekend, ultimately failing to reach a comprehensive agreement. However, considering that the market's sensitivity has significantly dulled, unless hostilities officially resume, this is not expected to disrupt the performance of most assets. Recently, we can shift our focus toward the foreign exchange market. Taking the US Dollar Index (DXY) as a reference, the price action is currently hovering near a crucial watershed level. Based on our long-term bearish view on the dollar, there is reason to suspect that new selling opportunities may emerge, and the DXY itself faces the risk of a bull trap. Earlier this year, the dollar once approached its 10-year long-term trendline, but the bulls ultimately defended thi
Watch Out For USD Bull Trap!? Forex Markets Hit a Tipping Point!
$Tiger Brokers(TIGR)$   $Futu Holdings Limited(FUTU)$  $Tesla Motors(TSLA)$ $HSTECH(HSTECH)$ $Mini HKEX USD/CNH - main 2306(MCNHmain)$   Yes I know this is a sensitive topic. But I believe I still have to make it a point to emphasise that no country will ever want to run itself the risk of having too many dollars assets and end up having its assets confiscated in an unlikely event of war or hostile situation. Further, with the immense liquidity situation due to the vast USD printing, countries need an alternative to USD. This is not meant to repl

A great way to hedge against weakening China`s YUAN.

Foreign exchange futures has come,  and they are very, very useful USD/RMB futures $Mini HKEX USD/CNH - main 2205(MCNHmain)$ If you have been involved in foreign exchange trading for a long time, you will not be unfamiliar with the currency pair between US dollar and YUAN. Due to some well-known reasons, the US dollar has risen recently, while the YUAN exchange rate has fallen. The trend of the dollar/yuan exchange rate is as follows: ​​ ​You will find that the US dollar index and the futures trend of US dollar against YUAN are the same, and they are all rising. Do you feel strange? In fact, it is not surprising that with the value of US dollars is increasing, One dollar can be exchanged for more yu
A great way to hedge against weakening China`s YUAN.

USD/CNH Surged, Trade UCHmain and other Futures for Profit?

Since April 19, the USD/CNH has changed the sideways trend near 6.38 since mid-April and began to break through the important mark of 6.41 for four consecutive days. It is also the first time that the USD/CNH has touched the level of 6.49 since August 16th, 2021. USD/CNH DAILY As of April 22, Tiger Trade $CME USD/CNH - main 2206(UCHmain)$  priced at 6.523,$Mini China Enterprises Index - main 2204(MCHmain)$  priced at 6.509. The three short-term trigger factors of the market consensus are: ① breakthrough of key points, ② strong US dollar and ③ foreign exchange purchase in the middle of the month. ① Breakthrough of ke
USD/CNH Surged, Trade UCHmain and other Futures for Profit?