Hi investors! Here’s your 5-minute stocks and cryptocurrency market update. Remember that investing in the financial markets involves risk of loss. You should only invest the money that you can afford to lose. Make sure to calculate your risk tolerance before selecting the assets to invest in. Forex and crypto are especially high risk.
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Forex Market Overview
On Tuesday we found out that the US October ISM non-manufacturing index came in at 54.7, vs 53.5 estimates, and the OPEC chief said the oil market may have upside potential in 2020. Wednesday is a fairly light day in terms of planned risk events but we do have the Euro-Zone Retail Sales (YoY) (SEP) and the U.S. Crude Oil Inventories (NOV 1).
Taking a Closer Look at USD/CHF
Today I’m looking at the USD/CHF pair which has continued its range trade above the 0.9845 support level which the daily Ichimoku cloud acting as a support as well. The key resistance is at the 50% Fibonacci retracement level of 0.9971, which the pair could revisit again this week. Longer-term we also do have more bullish bias than bearish.
Should the Ichimoku cloud continue to act as a support, we may even see further gains towards parity.
In my book, Ichimoku Secrets, I explain how this could be an interesting buying opportunity provided you’re willing to take the risk. For more on Ichimoku strategy development, don’t forget to grab the PDF version of my book, Ichimoku Secrets.
Crypto Market Overview
It has been a generally positive week for Bitcoin which, despite many traders assuming the coin had “overshot” its true value, continued to enjoy some minor gains. Currently, the coin is trading around $9,400, up from $7,400 this same time last month.
This week, we saw Coinbase’s head legal advisor suggest that the private sector needs to start working to build a “US digital dollar.” If successfully completed, this project would reflect both the digital and privatizing trends that can be observed throughout the industry.
We’ve seen many of the world’s top firms look for new ways to enter into the lucrative cryptocurrency marketplace. In fact, Coca-Cola—a global leader in consumer goods—just announced that it is seeking to expand its blockchain campaign to 70 different partners. We also saw Microsoft announce plans to create an “enterprise-ready” crypto platform.
Stock Market Overview
With several waves of earnings announcements and financial reports being released last week, the stock market was able to move in a positive direction. Currently, the S&P 500, DOW, and many other major indexes are all trading at or near their all-time highs.
Markets have also been bolstered by the Federal Reserve’s decision to lower interest rates, making it easier for bankers to access affordable cash. However, while this cut can stimulate the economy in the short-run, it also suggests that a slowing economy may be on the horizon.
Some traders have been concerned about October’s jobs numbers, which revealed that the unemployment rate is actually on the rise. At the same time, positive talks between the United States and China about removing tariffs may be enough to keep the market moving in a positive direction.
There will be a lot that traders need to pay attention to this week, especially as the world reacts to the still unknown effects of Brexit. Both the American Dollar and Chinese Yuan increased their relative spending powers this week. We’ll also pay attention to how “cash hoarding” behaviors by some of today’s biggest financial institutions will end up affecting stock prices.
Last but not least, learn how to start, manage and grow your investment portfolio in all these financial markets (without being stuck to your screen all day) by attending my brand new Master Class.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.