Jump to content
The Twitter Feeds are now back on the Platform ×

Stocks and Bonds Up, Dollar Down (For Now): Top Trading Opportunities


Recommended Posts

Stocks and Bonds Up, Dollar Down (For Now): Top Trading Opportunities

Jul 7, 2022 | DailyFX
Paul Robinson, Strategist

It appears that towards the very end of last quarter we hit a major inflection point in the trend of higher dollar and rates and lower stocks, and anything perceived as risky. While the longer-term outlook appears likely to continue supporting the first half theme, corrections will happen. It is even possible the correction in recent trends will have the market thinking the worst is behind us.

At any rate, I’ll take it one step at a time. For now, a recovery rally in stocks and bonds is anticipated while the dollar falls. The S&P 500 could rally up to around 4200, while the 30-yr ultra rallies to 160 or higher. The DXY could ease back inside the multi-year range towards the 100 level.

The S&P 500 isn’t necessarily bouncing from a highly notable level but the price action and sentiment suggest we have seen the worst for now.

S&P 500 WEEKLY CHART

Stocks and Bonds Up, Dollar Down (For Now): Top Trading Opportunities

Source: TradingView

The 30-year took out the 2018 low and reversed back above, suggesting we saw a wash-out.

30-YR ULTRA BOND WEEKLY CHART

Stocks and Bonds Up, Dollar Down (For Now): Top Trading Opportunities

Source: TradingView

Failing to stay outside of the multi-month range is setting up the DXY for selling.

DXY MONTHLY CHART

Stocks and Bonds Up, Dollar Down (For Now): Top Trading Opportunities

Source: TradingView

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,701
    • Total Posts
      92,068
    • Total Members
      41,986
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    dazzlingcheeseburger
    Joined 01/04/23 12:10
  • Posts

    • Hello everyone, i am looking to hold shares long term Apple Tesla in a spreadbetting account just wounded if there is a calculation example Tesla $195.00 1 share = ? ponds per point spread bet. Thanks for any help
    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...