Bitcoin higher, S&P?
July 26, 2020
Bitcoin and the S&P 500 have been strongly correlated with each other. This weekend, BTC had a nice move higher. Will the S&P follow?
The price of Gold is moving higher while the USD is in decline against most major currencies.
It is both interesting and amusing to hear Joe Q. Public explain the reasons for this.
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I believe that this workshop will be of great benefit to both new traders and veteran investors. You can sign up on my website with this link: Trading and Investing Workshop
Our free Telegram channel, Klarenbach Research, is growing in numbers and the members are getting more comfortable with asking questions regarding traditional markets and Bitcoin.
This is where the majority of the ideas are posted. Talk to someone who is in the Channel and ask them how the results have been.
This is the link https://t.me/klarenbachresearch.
I hope you check it out.
We have had good luck with our Trade Ideas and the ideas posted on our Telegram channel.
I have included the Trade Results Summary.
The number of trades is becoming too lengthy for this publication.
As you can see, finding Investor Class Ideas has proven difficult with more success with Swing Trade Ideas and the Telegram channel.
The expectancy of the Telegram Channels is 3.7% for a 13-day hold.
Extrapolated out to a 30 day month and the result is 8.5%.
Let’s see if we can improve on that.
MARKET REVIEW
**Click on any chart to enlarge**
S&P 500 Index (SPX)
Last week the S&P made a new high and is still above the 20 DMA. This is bullish.
The following idea appears less likely to occur with each passing week
At this time, I still consider the B Wave from my March 26 tweet near completion and am waiting for confirmation of the C wave formation.
NASDAQ 100 INDEX (NDX)
The Nasdaq trend of higher highs and higher lows is broken. The price is below the 20 DMA. What will this week bring?
Dow Jones Industrial Average (DJIA)
The DJIA looks like it will retest the 200 DMA.
ISHARES TRUST RUSSELL 2000 ETF (IWM)
The Russell 2000 has been a laggard, however, it is retesting the 200 DMA
TSX Composite Index (TSX)
The TSX is retesting the 200 DMA.
S&P 500 Volatility Index (VIX)
The VIX is below the 200 DMA and appears as if it has further to drop. This likely means higher prices in the S&P 500.
West Texas Oil (WTIC)
WTI is consolidating just under the 200 DMA. Will the 200 DMA continue to act as resistance?
GOLD Spot (XAUUSD)
Gold keeps moving higher suggesting a lack of confidence in the USD. Our gold positions in the Telegram channel are looking pretty fine.
US Dollar / Canadian Dollar (USDCAD)
USDCAD broke below the 200 DMA on the fifth test. Check out the green 50 DMA as it approaches the 200 DMA. Our green target below is still on the table.
US Dollar Currency Index (DXY)
The USD continues to look weak against this basket of currencies. Price is below the 200 Week MA and below this trend line from 2011. This is bearish.
BITCOIN (BTC)
This is the Bitcoin Brave New Coin Index. Price looks like it is ready to stay above this Hyperwave Phase 7 Line. This is extremely bullish.
WHEAT FUTURES (ZW1!)
Price looks like it will move higher to test the top of the ascending triangle. This is good for farmers. Not so good for gluten eaters.
SOYBEAN FUTURES (ZS1!)
We have been anticipating this breakout from the falling wedge for months now. Look at it go!
TLT vs SPY RATIO
(ISHARES 20+ YEAR TREASURY BOND ETF vs SPDR S&P 500 ETF TRUST
The TLT/SPy ratio is stuck between above the advancing 200 DMA and below the declining 50 DMA. I am anticipating a big move, I am just unsure of the direction.
You won’t find this in any TA books, however, this is called sideways f*&$%^ery.
FACEBOOK (FB: NASDAQ)
FB closed below the %0 DMA. This is not bearish but worth keeping an eye on it.
AMAZON (AMZN: NASDAQ)
AMZN broke the pattern of higher highs and higher lows. Just like the NASDAQ.
APPLE (AAPL: NASDAQ)
AAPL broke the pattern of higher highs and higher lows also.
NETFLIX (NFLX: NASDAQ)
NFLX is pulling back to the 50 DMA and an area of previous resistance. Previous resistance tends to act as support.
ALPHABET (GOOG: NASDAQ)
Not much to see here.
INVESTOR CLASS IDEAS
The Investor Class opportunities remain pretty thin as I don’t have many meeting my Investor Class Criteria for this week.
I will post in the Telegram Channel as Trade Ideas develop and are identified during the week.
Here is the link: https://t.me/klarenbachresearch
REMEMBER, CASH IS A POSITION
Don’t FOMO into a position. Have a plan.
YAMANA GOLD (AUY: NYSE)
AUY is up 17.7% to date. The green and red lines depict our Telegram long position entry and stop levels.
From three weeks ago:
AUY looks like it is breaking out above this bullish flag pattern and is above the advancing moving averages.
I am interested in an Investor Class or Position trade above Friday’s high of 5.34 with a stop below 4.66.
VANECK VECTORS JUNIOR GOLD MINERS RTF (GDXJ: NYSE)
GDXJ is up 24% to date and poised to move higher.
From three weeks ago:
GDXJ is above the advancing Moving Averages and looks like it is breaking out of the bullish pennant.
I am interested above Friday’s high of 47.54 with a stop below 41.93.
SWITCH INC (SWCH:NASDAQ)
Last week’s idea, SWCH did not trigger for us. I am still interested, however, price is below the 50 DMA.
I am a buyer above 19.00 with an initial stop below 16.78.
SLACK (WORK : NASDAQ)
SLACK triggered and stopped out for a 13% loss.
CGEN (COMPUGEN : NASDAQ)
CGEN has not performed well and lis just above our stop.
NUAN (NUAN : NASDAQ)
NUAN triggered and broke out before pulling back to the previous resistance. We are still long.
SWING TRADE IDEAS
The market feels toppy to me and after last week's experiences, I am giving the market time to indicate it's direction.
Swing trades will be posted as they are identified in the Klarenbach Research Telegram Channel.
We have been active in the Telegram Channel and the results have been impressive.
Here is the link: https://t.me/klarenbachresearch
That is all for now!
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