Politics preventing new financial stimulus

The economic recovery in the major global economic powers depends on several important factors. One of the most vital part, the spread of the virus and the government's answers to it. With a decrease in daily cases of COVID-19 to 50,000 in the U.S.A. Yet U.S. A remains the most significant global threat being the largest economy in the world. The trend of the virus in Europe has begun to worsen. With the majority of countries experiencing an increase in the past weeks.

The economic impact of global shutdowns, although severe, was cushioned by massive government aid and hawkish monetary responses everywhere. The U.S., after a slow start, introduced the most aggressive fiscal response in the form of its $3 trillion CARES Act. This funnelled cash to businesses and workers impacted by the pandemic and got forced into lockdown. 

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members
  • Exclusive access to articles

It had a significant impact on consumers, in particular despite a 10% reduction in salaries of employees in April. Due to substantial job losses, individual incomes in the U.S. A grew by approximately 10% due to a doubling of government funding. This mainly came through further unemployment assistance that entitled people to an additional $600 a week in aid. Despite this surge in government support, the household savings ratio increased to over 30% in contrast to an average savings rate of just 7%. Only to fall falling to 19% in June. However, there are critical factors here that contribute to the falling of savings rate: Those in the higher-income brackets, who would be less likely to have been affected, have seen savings spike. Those who were more likely to have needed the additional unemployment aid had a higher inclination to consume their stimulus cheque on necessities. Consumer spending is vital to any economy, especially in the U.S.A., which accounts for the vast majority of U.S. A GDP, is therefore vulnerable to the suspension of this stimulus cheque. 

These payments have been stopped at the end of July, and although President Trump has authorised a temporary (reduced) cost, there is no certainty about the policy beyond the end of this month. This is due to the ongoing conflicts between Republicans and Democrats on the next stimulus package. Democrats initially intended a package worth $3 trillion, with Republicans at $1 trillion. It appears that significant steps forward have been made towards a new stimulus package, but notable differences among them still remain. 

Given the fast-approaching nature of the election, it is unlikely that legislators on either side want to be criticised for another spending slip and citizen unease. That is why I still think a deal will be completed. Given the ongoing excitement within equity markets, it is likely that the market is also anticipating a deal to be done. 

Draghi returns  with Advice for policy maker

Former E.C.B. president Mario Draghi sent the current policymakers some critical advice about how best to control this financial crisis. His advice is really deserving of notice.

The speech is jumbled with historical quotations, such as to the wars, the global financial crisis of 2008 and the euro sovereign crisis of 2010, but we take away a few crucial bits of advice that are relevant to how policymakers may deal with today's obstacle. 

  1. This crisis is something modern policymakers have not yet seen so needs flexible thinking and innovative solution. The urgency and severity of the economic downturn caused by the pandemic that sticking rigidly to conventional views of monetary and fiscal policy risks worsening and lengthening the downturn the world is in. Policymakers in this crisis have shown to be realistic in introducing economic and fiscal assistance which we have never seen before. These actions have cushioned the fall for employees and corporations. For this efficient response to the global recession, they earned our respects. In European circumstances, it was feared that monetary rules would hurt governments from making these kinds of decisions. However, the European Commission has shown a sensible approach in waiving the rules for 2020 and possibly, for 2021. With blended resources also expected to be used for the first time, the union shown in the alliance of nations is a welcome and surprising characteristic of this mess.  
  2. There is what we can call "good" debt and "bad" debt. The significant increase in government debt levels due to crisis-related expenditure is sustainable, but only IF the funds are set towards productive uses. The actions of the E.C.B. have facilitated this. But it is not a cure. In the first instance, Draghi advises legislatures to protect the vulnerable to ensure social union. We have seen social division rise during this time, also causing major unrest. However, resources must be put to productive use and not wasted. In consequence of World War II, this took the form of a reconstruction of physical infrastructure throughout Europe. This time around, Mario Draghi advises that the investment should take the form of large-scale investment in human capital. Education is seen as a crucial part of the growth in productivity and economic growth. If economies are to prosper and the debt is to be paid back in the future, governments must have a revived focus on growing the productive potential of their economies. 

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members
  • Exclusive access to articles

Our team has received many reports of scammers using our content and pretending to be us. Unfortunately, these accounts are difficult to shut down as there are many that we do not know of. While we will continue to do our best to get these accounts shut down as we receive reports, we are unable to fully stop them. We want to educate our followers on how to spot these fake accounts in attempt to . Below our a list of things to look out for before making a purchase to any platform.

We do not direct message our customers!

We DO NOT direct message our customers on social media! While we will respond to messages we receive on our accounts, we DO NOT message followers first.  If you receive a message from an account that you have not previously messaged, this may be a sign of a scammer. 
How can I get in contact with a legitimate support member on the A1 Trading team?If you would like to get in contact with a member on our team and ensure that you are speaking with our team and not a scammer, submit a question on our website. The questions submitted on our website go into a database that only our team members can access. One of our team members will be reaching out to you within 48 hours after submitting a question. Contact our Support Team Here

We will not ask you to send us money

A1 Trading does sell an online VIP community, however, we DO NOT ask you to send us money directly via direct message on social media platforms. Any payments for our VIP community are made on our website (a1trading.com). If the payment options on our website do not work for you, submit a question to our team on our website and we can give you other payment options. 

Scammers also tend to be more pushy for a sale. A scammer may ask you multiple times to send them money or say they cannot help you until you send them money. We are not this desperate and quite honestly, we do not have the time to beg for a sale. If something feels off, go with your gut.

It's too good to be true

This goes for pretty much everything in life, If it's too good to be true, IT IS. Unfortunately, nothing in life is going to make you large amounts of money instantly. If it did, everyone else would already be doing it! Any successful person will tell you it took hard work and dedication to get where they are today. They won't tell you someone direct messaged them on social media and sold them a membership that made them thousands instantly. Use your gut! If someone is promising large amounts of money if you pay them, there is something wrong.

Check their profile

There are a few things that you can look out for in a profile that is a red flag and is most likely a fake account. 

First, check the date of their posts. Scammers, unfortunately, are creating thousands of these accounts. If the posts were all created on the same day, this is a red flag! Scammers often post lots of posts to fill up their profile to make them seem more legitimate. 

Second, read the captions. Because these scammers are busy direct messaging people and creating lots of accounts, they usually do not put much time into their profile. Usually, their posts will have no captions, very short captions or captions with some emojis. Real accounts are more genuine and captions are more personal and thought out. 

Third, look at their stories. Real accounts usually post live videos on their stories. Scammers post screenshots of other stories or videos that do not show them or their voice. When deciding if an account is a real, look in their stories for videos of them or their voice. 

Below are screenshots of a fake account with examples of the red flags: 

Before you send anyone money, ask yourself this...

Unfortunately, there are scammers everywhere. They are scamming people in every business, not just ours. Here is a checklist of things to ask yourself before sending anyone money.

1. Is it too good to be true? Are they promising me way more than I am paying?

2. Are they being too pushy for a sale?

3. Is their profile legitimate? Do they share real videos and genuine posts?

4. Are they sharing a legitimate website to make a payment or am I sending money to their personal money transfer account?

5. Does something seem off?

If you feel that something seems off and want to ensure your money is going to a legitimate person, reach out to our support team on our website.Contact our Support Team Here

All accounts associated with A1 Trading

Below are accounts that are associated with A1 Trading. Any other account is not associated with us and is a fake account:

Telegram
A1 Trading Forex Analysis: https://t.me/TraderNicksFXAnalysis
A1 Trading Gold Analysis: https://t.me/joinchat/AAAAAFCSsGP2VxN6EAjEQw

Instagram
@Tradernickfx
@a1tradingteam
@ed_a1trading

@a1tradingmemes

Twitter
@tradernickfx
@a1tradingteam

Facebook
@tradernickfx
@a1tradingteam

Youtube
TraderNick

Warren Buffett is one of the most idolised, investors in the world.

At the time of writing , his company, Berkshire Hathaway, has a market cap of $495 billion and Buffett himself has a net worth of $79 billion.

His approach to value investing, combined with his influence over the companies he invests in , has seen him generate an average annualised return of 20.8% per year. Just over double the 9.7% annualised returns the S&P 500 delivered over the same period of time, since 1965.

He’s known as the Oracle of Omaha. A wise investor whose name is synonymous with wealth and investing, a modern icon of success in the financial markets.

…This is his story.

Early Years

Warren Buffett was born on the 30th August 1930, in Omaha, Nebraska.

His father Howard was a stockbroker, with his own brokerage firm and his mother Leila was a housewife. Buffett had two sisters.

Young Warren

As a young child, Warren Buffet would spend most of his time at his father’s brokerage firm, writing numbers on the chalkboard and reading books. He was close to his father and describes his father as affectionate and inspirational man. He credits a lot of his success to him and says he was the one who introduced him to investing and his love of books.

As a young boy, he was always a lover of numbers.Even from a very early age he had an appreciation for business. This was became clear after reading a book called “One Thousand Ways to Make $1000”. Apparently, as a child, Buffett told a friend that if he wasn’t a millionaire by 30 he would jump off the tallest building in Omaha.

Some of Buffett’s first ventures were to sell chewing gum and bottles of cola door-to-door. He had many other ventures, such as finding and selling used golf balls and selling popcorn at football games at the University of Omaha.

When Buffett was 11, his father took him on a trip to New York. The main things Buffett wanted to see were the New York Stock Exchange. When he saw the NYSE for the first time, he saw a young boy rolling cigars for the traders to keep them happy, this is when he realised that stock investing was where the real money was.

At only 11 years old, Buffett made his first real investment, using the money he had earned so far (around $120) to buy his first stocks.

He decided to buy shares for himself , in an oil and gas company called Cities Service. He bought 3 shares priced at $38.25 per share. After investing in these, the price quickly dropped to around $27 per share, but an anxious young Buffett held on and waited until the price increased to $40, at which point he sold his stocks and took a small profit.

After taking the profit, the price increased a lot more, up to $202 and Buffett realised he could have made a lot more if he had waited. He says he learnt a lot from this early investment, like the need to be patient and not to rush into a decision without reason.

Buffett bought his first property at the young age of 15 using the money he had earned from his paper round and other ventures. He used around $1200 to purchase a 40-acre farm in Nebraska. Buffett hired a tenant farmer who worked the land for him and they shared the profits.

Buffett graduated from high school in 1947 at the age of 17, with the caption under his yearbook picture reading: “Likes math; a future stockbroker”.

His father persuaded him to enrol at the University of Nebraska where he graduated at 19, earning his degree in Business Administration.

It is believed that Buffett was so frugal at an early age that he chose to live in the YMCA whilst at University, so he could spend as little as possible and save his money instead.

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members
  • Early Access to our newest trading articles

After Graduation

After graduation, Buffett wanted to go to Harvard Business School, as he thought this would be more mentally stimulating and give him a chance to learn more. Sadly he got rejected...

Instead, he decided to go to the Columbia Business School to study for his Masters. Buffett chose Columbia after reading the book “The Intelligent Investor” by Benjamin Graham, which Buffett says is the best book about investing ever written.

THE INTELLIGENT INVESTOR - ndiio.com

When he heard that Graham taught at Columbia, he had to go there. Graham became a massive influence on Buffett, who says he was one of the most influential people to him after his father.

Buffett learnt about the fundamentals of investing whilst in Graham’s classes and was the only student to ever get an A+. He was able to find assets that were valued at a lower cost than they could be worth, by thinking like a business owner. He then manages the investments efficiently over the long term.

After graduating, Buffett was keen to go straight to working on Wall Street, but both his father and Benjamin Graham pleaded with him not to. Buffett even offered to work for Graham for free but Graham refused, so he returned to Omaha and started working at his father’s brokerage firm.

As a very introverted, shy and nervous person, Buffett decided to take a Dale Carnegie public speaking course. He credits this as being one of his most important investments.

It was around this time that Buffett met his first wife Susie. They were married in 1952 and lived in a small run-down apartment. They had their first child, Susie, and to save money they turned a drawer into a bed for her.

Warren and Susan Buffett-wedding 1952 | Celebrity wedding photos ...

He began teaching night classes in investing at the University of Ohama, where most of his students were twice his age.

Finally, Buffett was contacted by Benjamin Graham who offered him a job at his partnership and in 1954, he moved back to New York to work there.

He spent most of his time at the partnership searching for opportunities and analysing reports. He became more interested in how companies worked and thought about the company’s management as part of his investment decision process. Graham was more interested in the balance sheets as his main investment decision process.

Already in these early years of his career, there were aspects of finance that he was obsessed with — the most important being that of compound interest. It’s thanks to this that he was able to build huge levels of wealth over the years.

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members
  • Early Access to our newest trading articles

Starting his own partnership

In 1956, Buffett decided to leave the partnership and move back to Omaha. It was here that he started his own partnership called Buffett Associates Ltd. Seven family members and friends invested $105,000 in total, with Buffett only investing $100 himself. By the end of the year, he was managing around $300,000.

Buffett had two more children and, with a growing family, he decided to buy a house for $31,500.

In 1960, Buffett spoke to one of the partners who was a doctor and asked him if he could get another 10 doctors to invest $10,000 each, he succeeded in this and got 11 doctors to invest.

By 1962, the partnership was now worth $7.2 million, and Buffett decided to merge all the partnerships together into one; forming Buffett Partnership Ltd. The minimum investment amount was $100,000.

It was also in this same year that Warren Buffett met Charlie Munger and they hit it off straight away, starting the famous friendship that was to last for years to come.

Billionaire Charlie Munger praises this 1 skill of Warren Buffett's

Berkshire Hathaway

Buffett started buying stocks in Berkshire Hathaway in 1962 when it was mainly run as a textiles company and was owned by Seabury Stanton.

He decided continue to buy more shares in the company. He eventually took over Berkshire.

Buffett tried to stick with the textiles part of the business at first but realised there was not so much profit in it and started to phase it out. He started investing in insurance companies instead, and in 1967 bought the National Indemnity Company and National Fire & Marine Insurance Company.

In 1970, Buffett named himself as Chairman of the Board at Berkshire Hathaway and wrote his first letter to the shareholders. These letters from Buffett would later become very famous and something studied by many investors around the world.

Investing in a Moat

In 1971, he made the biggest investment of his career until then. Through Berkshire Hathaway, he bought a company called ‘See’s Candy’ for $25 million in cash.

“The single most important decision in evaluating a business is pricing power, if you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business.” - Warren buffet.

Berkshire Hathaway’s value rose over the years, and between 1965 and 1975 it went from $20 per share to $95 per share.

Gaining the Float

This acquisition and involvement of the insurance business in Berkshire Hathaway have also become a trademark part of Buffett’s success.

When insurance companies collect people’s premiums, they don’t get paid immediately in other insurance claims. This cash stays with the company and is known as its ‘float’.

Berkshire Hathaway, thanks to its insurance businesses, has a float that was $39 million in 1970 and has risen to over $100 billion.

In the late 70s, Berkshire’s stock prices went up to over $290 per share and Buffett was worth around $140 million. Buffett’s net worth was tied up in Berkshire and therefore the only money he had to spend was his salary of $50,000.

His solution was to start investing his personal money in stocks as well. He made himself $3 million dollars in investments.

Apparently, around this time a friend spoke to him about investing in property, but Buffett refused, saying “Why should I buy real estate when the stock market is so easy?”.

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members
  • Early Access to our newest trading articles

Buffett in the 80s

Investments Buffett made throughout the 80s really typify his approach.

Buffett set his sights on Nebraska Furniture Mart in 1983, so he walked in to speak to the owner and offered to buy it. The owner agreed at a price of $60 million, which Buffett agreed to and shook hands. A contract and cheque were sent along just days later.

In 1984, Berkshire bought into Scott and Fetzer. The company had been going through a hostile takeover and were panicking. Berkshire offered $60 per share and Scott and Fetzer agreed.

In 1988, Berkshire began to buy shares in Coca-Cola. The owner, who was an old neighbour of Buffett, noticed the shares being bought and began to panic and started investigating. Upon investigation, he recognised that it must be Buffett and gave him a call to find out what was going on, but Buffett wouldn’t say anything until he was required to (once they hit the 5% threshold).

Berkshire managed to own a share of 7% in Coca-Cola, which was worth over $1 billion. Buffett became a billionaire in 1990.

Buffett in the 90s

In the late 90s, the lure of the new dot.com companies was simply too appealing for most investors and it soon became a bubble. Buffett, on the other hand, steered clear.

In his letter to shareholders, he claimed that technology investors had overstayed the party. He said value is destroyed, not created by any business that loses money over its lifetime.

During this time, many people thought Buffett had lost his touch, with Barron’s even writing “What’s Wrong, Warren?” as Berkshire stock had gone from a high of $81,000 to around $40,000 per share.

However, Buffett, in hindsight, was right. As the share price recovered to its previous highs once the bubble and hysteria ended. His vision to avoid the hype and stick with his long-term approach beat other investors yet again.

The Financial Crisis

During the financial crisis of 2007-2008, Buffett was once again criticised. This time it was for allocating capital too early and not getting the best deals.

Throughout 2008, he acquired large stakes in big companies such as Goldman Sachs and General Electric. It was at the times of panic that Buffett was able to use his huge hoards of cash to gain companies at a large discount from the value he saw in them.

However, the criticism may have been misplaced, as already 5 years later he was reported to have made over $10 billion profit from the deals he had made between 2008 and 2011. This is despite showing a drop in profits of 62% during 2008 itself.

In particular, Buffett’s investment in Bank of America is seen as being a genius move. A $5 billion investment in warrants were able to be exercised for a stake worth $19 billion; meaning by 2017, he had made a profit of $12 billion.

Philanthropy

In February 2011, Buffett attended a ceremony at the White House where he, along with fourteen others, received a Presidential Medal of Freedom, which is America’s highest civilian honour. It was awarded by President Obama, who said the people being awarded were “some of the most extraordinary people in America and around the world”.

When talking about Buffett, Obama said he was “not only as one of the world’s richest men but also one of the most admired and respected” and he has “demonstrated that integrity isn’t just a good trait, it is good for business”.

Philanthropy

In February 2011, Buffett attended a ceremony at the White House where he, along with fourteen others, received a Presidential Medal of Freedom, which is America’s highest civilian honour. It was awarded by President Obama.

When talking about Buffett, Obama said he was “not only as one of the world’s richest men but also one of the most admired and respected” and he has “demonstrated that integrity isn’t just a good trait, it is good for business”.

Since the year 2000, Buffett has donated more than $46 billion, making him the most charitable billionaire. It was always his aim to build up wealth in order to give it away to help the wider society. His lifestyle of frugality shows how money holds little value for him other than being a measure of his success in what he calls ‘the game’.

He has also pledged that 99% of his wealth will go to charitable causes, with 83% of that going to the Bill and Melinda Gates Foundation, the foundation co-founded by one of his best friends, Bill Gates.

When you look at the life of Warren Buffett, it’s clear that you have a man who lived by principles and integrity. This included his investment decisions, which always followed fundamental rules that he stuck to, as well as his private life.

Rather than letting his life be dictated by his huge wealth, he lived a humble lifestyle and appreciated the close group of people around him. As he says:

"It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently.”

Once it’s all said and done, in the history books, his reputation will be regarded as one of the greatest investors and businessmen of all time; a humble and generous man who enjoyed and understood the game. 

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members

3 Steps to Trading Successfully 

  1.  Join A1 Trading and focus on learning the reality of trading the financial markets.
  2. Start applying trading concepts learnt and focus on achieving consistency and discipled trading and learning the basics of risk management.
  3. Take your consistency and get funded through . Trade on live account with consistent profit.

Graphic Design: Alex Singeorzan 

singeorzan@alexdesigno.com

https://www.instagram.com/alex.singeorzan

Setting goals for yourself when it comes to your performance in the financial markets might not be as straightforward and simple as you may imagine. 

It's essential to set a goal whenever you're working towards something in life, otherwise how will you ever know if you've achieved it? Goals can be motivating and are often really helpful in keeping you on the right track to achieving success.

However, it's just as important to spend time ensuring the goals are meaningful rather than purely inspirational and spur of the moment thoughts. Things that are actually going to help you reach a desired outcome and monitor your progress towards achieving it.

For example, when you set goals for your trading/investing progress, have you ever relied on statements along the lines of "I want to become more profitable" or "I want to open more great trades?".

Want to see our trades live?

Join our premium trading community to:

  • See our top trade alerts from our analysts
  • Access our VIP chatrooms with traders worldwide
  • Access our training material exclusive to members

I have to hold my hands up to that one, I've used goals like that in the past - most traders have! Unfortunately, these sort of blanket statements just fall into the category of 'easier said than done'.

We need to get more specific. We all set these blank goals in life. We set ourselves these vague goals often. Saying I want to be a profitable trader is just like saying I want to be able to run a marathon or I want to get all A’s in university. 

To be able to truly achieve your trading and personal goals you need to get specific and consistent with your goal setting.

Setting the right goals

Each of us has different strengths, weaknesses, and past experiences that affect our trading. Some may be highly risky traders as they have not yet encountered a reality check by Mr. Market others may be risk averse. We all have different areas we need to work on in our trading approach if we want to progress and succeed in the markets to become profitable traders.

By using a blank statements about our overall trading, we're not really going to be measuring progress in the areas that really matter to us individually.

Rather than setting goals and measuring our success based on improvements only in our P&L, we should be identifying points that are holding us back and find an appropriate measure that shows progress in that specific area. 

Many traders need to focus on their risk management (which I believe is the key to a long career in the markets) setting specific goals such as no more than 2% per trade or after 3 losing trades walking away from the screens. Stopping to trade when you feel that you will over trade or start revenge trading. If this is something you struggle with get some help! Invest in your education here with A1 Trading

Other traders may need to focus on not jumping the gun! Not entering into trades too fast, not checking macro-economic data or not looking at the economic calendar to see if there is high volatility news due, as we all know trading before major news releases is very risky.

By doing that, it will help us to focus our development plan in a way that's meaningful and encourage trading in a way that's more sustainable. Things that avoid us being tempted into risky approaches in an attempt to hit profit targets, without any improvements actually being made to our ability.

What's your ratio ?

To help put this in to practical terms, there's a quote from the book 'Good to Great' by Jim Collins that has always resonated with me. It's intended to apply to business, but I think it can also be adapted to apply to trading or any other area of your life you're hoping to improve.

"If you could pick one & only one ratio - profit per _____ - to systematically increase over time, what _____ would have the greatest and most sustainable impact on your economic engine?"

That's definitely something to really focus when making realistic goals regarding your trading. The word 'sustainable' is key here - we don't want to hit a profit target for the sake of it, but instead we want to see an improvement in our approach to the financial markets in a steady & sustainable way. Improvements that lead to dependable and repeatable returns in the market, not a one-hit wonder. 

If you want to check out one of the best one hit wonders where one Forex trade generated over $300Million profit click here a1trading.com300-million-one-forex-trade

Have a think about you ratios as a trader - what would your ratio be that you want to improve? What would show that your performance as a trader / Investor is moving in the correct direction?

If you're an A1 member, let's discuss and share our specific trading goals in the discord server 

Get $5 Off our VIP Group!

JOIN OUR VIP AND GET $5 OFF USING CODE 'EAVIP'

If you would like to learn about how to get started using 

You can also  get access to our live streams, training course and much more.

Start learning with A1 Trading our introduction educational portal. Get access to all of VIP Trade Alerts, Daily market analysis & Strategy library. 

Learn a method of trading & Investing with that works! 

 

Not a get rich quick but the reality of wealth Building!

Get started at A1 trading!

3 Steps to Trading Successfully 

1 Join A1 Trading and focus on learning the reality of trading the financial markets.

2 Start applying trading concepts learnt and focus on achieving consistency and discipled trading and learning the basics of risk management.

3 Take your consistency and get funded through . Trade on live account with consistent profit.

JOIN OUR VIP AND GET $5 OFF USING CODE 'EAVIP'

Graphic Design: Alex Singeorzan 

singeorzan@alexdesigno.com

https://www.instagram.com/alex.singeorzan

https://a1trading.com/vip-edi
 

The morning of October the 19th, 1987 might have seemed just like any other Monday Morning. It was a chilly day in New York as traders headed to the NYSE, but little did the traders on the Stock Exchange floor know that things were about to change dramatically.

Unexpectedly, The Global Financial Markets crashed like never before. Shock, panic filled the floor throughout the day and The Dow Jones suffered a 22.6% loss, the worst single-day drop it has ever seen! on a day that would forever go down in the history books as “Black Monday”.

Many people heard of this black Monday and historic drop.

Without a single significant identifiable cause for the crash, it’s thought that the huge moves were as a result of panic in the markets. However, not everyone was panicking in the markets. Where one trader sees failure others see an opportunity! 

One trader in particular who achieved legendary status thanks to these dramatic events was Paul Tudor Jones. Famously predicted a crash that was imminent and expected net a profit of $100 Million. An incredible trade. This extremely successful trade threw Tudor-Jones into the spot light of the trading world and made him part of trading history. He then became a trader that many people aspire to be, but there was a trader that netted an even greater profit than P. T Jones whopping $100 Million.

There are many lesser-known traders who achieved impressive profits and success, while the rest of the market was in a sea of red. One of these traders was Andrew Krieger (the man in the banner), a trader from Bankers Trust, a New York-based bank that would later become part of the German Investment Bank called Deutsche Bank.

Krieger’s success around the time of Black Monday led to Bankers Trust making an insane profit of $300 Million on Krieger’s trades. Black Monday was not so dull for Krieger and his team. It was this kind of bold and fearless trading activity in the financial markets that gave him the title of “The most aggressive trader in history”. On this occasion, it was thanks to his trading of the New Zealand Dollar (NZD) or also known as The Kiwi Dollar.

The New Zealand dollar, was still relatively a new and untested currency at that time. It had only been introduced in 1985, which was only two years before Black Monday.

Since September 1986 The Kiwi had been rallying against the US Dollar. This rally started to be gaining momentum in mid-1987, sending The Kiwi Dollar up 40% trading at around 112NZD for 1USD from its lows in September 1986 to its peak on the 8th of October 1987.

Krieger identified that The Kiwi had become overvalued and saw this as his opportunity. Typically, an institutional trader in the 1980s would invest $20 Million to $25 Million per trade. But, Krieger was known to invest up to $250 Million, 10 times the amount of average traders! And that’s not all…

1 - Have Sufficient Funding

Following his success at the bank up until that point he became an amazing trader and often they would turn a blind eye to his position sizes, during this time he gained the reputation as one of the most dominant and aggressive currency traders in the world, his capital limit was increased way above the average trade to a staggering $700 Million.

Krieger was determined on using this massive nearly 1 Billion amount to short The Kiwi. In fact, he took it a step further and applied leverage of up to 400 to 1. Meaning his full position size in the market was in fact a jaw dropping $280 Billion. Thanks to the use of derivatives, it’s said that his enormous short positions were actually even larger than the entire amount of money supply of New Zealand meaning he was shorting the currency pair with more money than actually existed in terms of New Zealand Dollars.

2 - Study before you execute & be confident in your analysis

It’s no surprise at all that the currency began to collapse and fall from 112 to around 99. For those trying to figure out how many pips that was the answer is 1,300 pips.

They quickly noticed that someone was taking large positions against the New Zealand Dollar and thought they were attempting to collapse the currency, so without having to further expand it was a huge trade.

The Kiwi Dollar fell rapidly and then yo-yoed back between a 3 to 5% loss, at which point he decided to exit the trade and secure a history-making profit of $300 Million. One of the greatest single financial trades in history.

3 - Let your profits run (Avoid taking profits too early)

John Key, who later became New Zealand’s Prime Minister between 2008 & 2016 was one of Krieger’s co-workers at the time this epic trade took place. He claims that Krieger was a pioneer and one of the few people at the time who really understood the markets like no one else did.

Following the extremely successful trade, Krieger continued to make big buy and sell orders on The Kiwi, around the $50 Million Dollars mark, this led to the New York branch of Bankers Trust to become the number one dealing room for NZD.

4 - Be aggressive in you're trading (but never over risk) 

Despite his extremely successful period, Krieger soon left Bankers Trust as his salary and bonus for the year was a minor 1% of the profit from his Kiwi trade. Krieger went on to work for George Soros (picture below), a highly successful money manager. The Hungarian money manager known for breaking the Bank of England who is famous for one of the other single greatest trades of all time and perhaps the most famous example of a currency raid.

Of course, it helps to have the financial weight behind your trades like Krieger had, but this sort of success wouldn’t be possible without being well prepared, understanding markets deeply.

 To be consistently up to date with daily market fundamental updates join our private discord group with the link below to get 5$ off the monthly subscriptions and get 5$ off the yearly subscription! https://a1trading.com/vip-edi to be able to identify opportunities and having complete conviction in your trade decisions.

Start learning with A1 Trading our introduction educational portal. Get access to all of VIP Trade Alerts, Daily market analysis & Strategy library. 

Get Started:  https://a1trading.com/vip-edi 

Learn a method of trading & Investing with that works! Not a get rich quick but the reality of wealth Building!

Get started at A1 trading

https://a1trading.com/vip-edi

3 Steps to Trading Successfully 

1 Join A1 Trading and focus on learning the reality of trading the financial markets.

2 Start applying trading concepts learnt and focus on achieving consistency and discipled trading and learning the basics of risk management.

3 Take your consistency and get funded through . Trade on live account with consistent profit.

Graphic Design: Alex Singeorzan 

singeorzan@alexdesigno.com

https://www.instagram.com/alex.singeorzan

How to get your own scanner: https://a1trading.com/xmr-indicator/

The past few weeks, our team has been working on developing another trading tool that we believe will be very helpful in finding extreme readings in the markets. The scanner is fundamentally volatility reader on multiple periods. The user has the choice to select 5 "lookback" periods, which basically read the volatility of each period set, and compute a total reading, -5 to 5. For example, if the 4 day lookback period, the 7 day lookback period, and the 14 day lookback period all show signs of overbought, the indicator may print a +3 reading on the indicator. A +5 would mean that all lookback periods are printing overbought.

The XMR Indicator 

The extreme mean reversion indicator (XMR) is a chart indicator used to identify potential reversals in a financial market. The XMR indicator specializes in scanning previous price action in order to signal potential overbought or oversold conditions in a market. The XMR is displayed as a bar chart, with a set range from -5 to +5. +5 is considered extremely overbought, and -5 being extremely oversold (dark gray)

The tool was built with the concept of mean reversion in mind, meaning that markets often return to historical means. With this in mind, this tool can be utilized to look for markets that have significantly moved away from their historical means and may be due for a reversal.

Range

The available range for the XMR Indicator is -5 to +5. A reading of -5 is considered extremely oversold, while a reading of +5 is considered extremely overbought. However, these readings are rare, and are not the only levels to consider.

Usability

The XMR indicator has a wide range of potential uses. It can be a great tool for both trading range bound markets, or finding pullback setups in a trending market condition. 

A reading on the XMR indicator of +1 to +5 is considered a market in which price is overbought, with +5 being more overbought than a reading of +1. Inversely, a reading of -1 to -5 is considered a market in which price is oversold, with -5 being more oversold than a reading of -1. 

With this information, the XMR indicator can help spot a potential reversal in a market. Combining this information with other signals, such as a price action patterns, a fundamental bias, or other technical pattern could be useful in finding profitable trading setups.

Example 1 - Trading Ranges:

The XMR indicator usually excels in a range bound market. In the image below, you will see that the XMR indicator does a decent job at finding tops and bottoms in the range. A trader using the tool could look for readings indicating that markets may be stretched, combine it with additional technical signals, and take trades accordingly.

Example 2 - Trading Trends:

When a market is trending strongly, looking for reversals may be less profitable. However, the XMR indicator may still be a great way to look for pullbacks to join the trend. In the image below, you’ll see a market that is trending strongly to the downside, but pulls back and prints an overbought reading on the XMR indicator. This could be a way to spot and time pullbacks that have a strong likelihood of failing in favor of the dominant trend.

How to Set Up

Once the scanner is downloaded on to your computer, go into your MetaTrader platform and click on 'File' then 'Open Data Folder'.

Then, your folder should pop up and click on 'MQL4' >>> 'Indicators'. There, you will see all the indicators that MT4 downloaded.

Once you're there, drag the 'XMR_Indicator' download into your 'Indicators' folder.

Go to 'Indicators' on MT4. Scroll down to the XMR Indicator (You might have to refresh MT4 or close out and reopen it).

Finally, drag the scanner on to any chart and it will start running.

How to Customize

The scanner already has lookback periods built in to the input, but you can choose whatever time periods as well as whatever design you want.

Once the indicator is running, you can right click on the indicator and click 'Indicator Properties'.

There, you can change the lookback periods or design of the chart.

How to Trade With It- General Idea

Here is an example of a short trade on EUR/USD using the XMR Indicator. Notice how the blue bars mark when price is overbought (OB), and red bars mark when price is oversold (OS). The white areas of the chart mark less extreme conditions of OB and OS which range from -2 to +2. Harsher conditions measure -3 to -4 or +3 to +4. Usually when price reaches to a -3 or +3, it has ended up being a good time to enter long or short positions. A -5 and +5 are very rare, but are the best indicators when looking for a reversal.

Here is a -4 reading on GBP/USD during the crash earlier this year. A buy at that mark would have made over 1,300 pips from lows. The screener obviously works best in extreme conditions, but can also signal for potential longs or shorts above +2 or below -2.

Conclusion

The purpose in making this scanner was to help traders see one of the strategies our team uses. We believe this to be very helpful and accurate for traders of all levels, who like to trade on mean reversions or reversals. Not every indicator is perfect, but they can be used as tools for insight on any kind of market you want to trade. This scanner is meant to help the user gauge their trade or alert them when prices enter a new territory of overbought or oversold. Overall, it's a great tool and hopefully our users will find it helpful as well.

Hope you all enjoy it! We will be using this tool in action for more of our trades so stay tuned!


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

My opinion on cryptocurrency used to be incredibly bearish if we're talking back in 2017-18 after Bitcoin hit over $19,000. An unregulated market and currency became a hub for black market deals as it could not be tracked. But now my opinion has changed a bit for a few reasons: 'safe-haven' pairs weaken like USD, FOMO, and hype apparently outpaces logic.

https://www.coingecko.com/en/coins/dogecoin

Prices came up to a yearly high yesterday to $0.0052, originally at $0.0020 before a massive amount of buyers stepped in. Shortly after, traders clearly took profit, and the price dipped down to $0.0030s. Right now, dogecoin is up over 416% from lows after several TikToks and memes become some of the greatest market analysts in the world. As ridiculous as it sounds, it's comically true.

Audience

Anyone can bash crypto as much as they want, but the price defied all crypto bears. I mean, who doesn't want to be a part of a trade that moves 400% percent in a few days? This largely has to do with audience. Who do you think is making trades like this? It's not billionaire investors or people running hedge funds; they are probably young, speculative investors who want to get rich quick. If you keep up with stocks, you might have seen Hertz stock soar over 100% as the company is facing bankruptcy. With millions of young investors who have incredibly easy access to markets now are seeing an ultra cheap price along with talks about it on social media, it becomes an indicator in itself on what to buy. It's similar to reading 13F filings on institutions to see what stocks they bought last quarter. People often read Warren Buffet's 13Fs to essentially copy what he does. I realized that you can do this in the same way but by using social media platforms like Instagram or TikTok, which leads me into my next point.

FOMO

Fear of missing out is a huge issue now as chasing prices can actually work in these weird market times. We watched as Nikola Motors announced that they will start manufacturing their new pick-up truck and begin sales in the near future. The stock price went from the $30s to peak at $95 before selling off back to the $50s. That means lots of money was poured in the stock even after the shareholders' vote passed the merger, and people were buying in the $60s, all the way up to the $90s. If that's not chasing price then I don't know what is. This is the kind of behavior happening with dogecoin.

Dollar Weakening

When the US took measures to stabilize their economy, trillions of dollars were created to provide funds for the unemployed and businesses as well as the Fed's $7 trillion balance sheet. Other countries did the same strategy of causing inflation to their currency, but none were on this level. Like metals, crypto is another place people might transfer their money into when fiat money begins to hurt.

Fundamentals

As far as fundamentals go, I have none on dogecoin. All I know is that it is a meme that became legit according to the investors that brought it up over 400%. Analysts are still ranking it a buy regardless of the move it just made.

https://www.coingecko.com/en/coins/dogecoin

What I think

Cryptocurrency as a whole is speculative, but so are investments like Tesla. If you can know where money is flowing, or at least speculate, your trades could end up becoming very profitable. I'm not telling anyone to buy dogecoin, but as crypto progresses, it will become more and more relevant over time. If I'm feeling frisky, I might put some play money into doge for the fun of it. After all, $20 in this crypto is around 6,000 units of dogecoin.

Featured Photo: https://cdn.vox-cdn.com/thumbor/G_w4Nyo9IJx5q5xa5E92vJCVyUQ=/21x0:539x345/1200x800/filters:focal(21x0:539x345)/cdn.vox-cdn.com/assets/3727699/Dogecoin_logo.png


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

As mentioned in the previous article, SPACs are doing very well in 2020 as EV and new competitors enter the market. After doing analysis on Nikola Motors, BurgerFi and Opes, I've been given some recommendations from members in the community. Here is another SPAC (Special Acquisition Company) that is doing something similar in the electric vehicle industry. I will also talk about another stock merger at the end on this article that I think is worth looking at.

Overview

Late last month, SHLL (Tortoise Acquisition Corp.) officially announced that they will merge with the company Hyliion Inc. The new ticker symbol will become HYLN as shares of Tortoise Acq. turns in shares of Hyliion under the NYSE.

At some point in Q3, the two companies will combine giving Hyliion an estimated total market cap of $1.5 billion, according to businesswire. Hyliion will then receive $560 million, and private investors will get their subscription price of $10.00 per share. This means that private investors have access to the price at a greater discount, and they can decide to close their positions if they want to. That could be something to look out for because it is possible to see a sell off once the merger is complete. Assuming no shareholders decide to sell, it could be a good sign for us traders who are not in private equity. After Hyliion receives their funds, they will be able to optimize their potential to grow operations and manufacture more products. Although it's yet to be announced, the merger is expected to be completed at the end of Q3.

A little about Hyliion

Originally a motorsport racer and engineer, Thomas Healy turned to implementing his EV ideas from the sport into his own company, Hyliion, of Class 8 Trucks back in 2015.

https://www.hyliion.com/wp-content/uploads/2020/06/Hyliion-Tortoise-Overview-Presentation.pdf

This was taken directly from the Hyliion website. This table is comparing the cost of each truck over 7 years of 100,000 miles driven. Note that these are estimates, but they will give you a pretty good idea of what to look at in the coming years. The circled number is the estimated 7-year total cost of ownership which is significantly cheaper than both Tesla and Nikola Motors. The last row is the estimated savings on diesel costs. Right now, owning a Tesla or Nikola truck will actually lose you money on the investment, whereas Hyliion's trucks will save you 35% on diesel costs over 7 years.

https://www.hyliion.com/wp-content/uploads/2020/06/Hyliion-Tortoise-Overview-Presentation.pdf

This was also taken from the same site above comparing the range, payload capacity, charge time, 0-60 performance. In my opinion, the most important things to look at in these EVs are the range, capacity and charge time. I don't think a 0-60 matters as much for semi-trucks, I actually think it would be more dangerous for a truck like that to be able to reach 60 mph in a shorter period of time. I would be more concerned about how fast a semi-truck can go from 60-0 mph for safety reasons. On charge time, Hyliion and Nikola have the fastest times of 10 minutes to fuel back up. Hyliion trucks can go the farthest without needing a recharge and can also carry a much greater load than both Nikola and Tesla, as well as standard diesel trucks. I actually strongly encourage you to look at the website links I placed below the two pictures above, and check it out for yourself. I'm just scratching the surface of what this company does as I try to make these articles brief, but I definitely think this is worth looking into for yourself.

https://www.hyliion.com/wp-content/uploads/2020/06/Hyliion-Tortoise-Overview-Presentation.pdf

These number are in millions of dollars for their estimated financials in 2020-2024. As you can see, Hyliion doesn't plan on making profit until 2022 on EBITA (Earnings Before Interest, Taxes and Amortization). This is due to their expansion phase they plan to take on after they go public and become a much larger company. I've said this before, but Tesla has not been known for making lots of profit *yet*. Tesla, believe it or not, is still in it's early stages of growth as it expands to become the leading company in the EV business. Their stock traded at a higher price than any other automotive company even before they started making money. That's because they spend lots of money on growing their business; companies in early growth phases tend to reach a certain level of debt and use it as an asset for further operations. I think a big thing to look out for is how quickly and how much Hyliion can generate revenue which will boost their net income and cushion losses on their expenses.

Conclusion

Overall, I really like this company over most competitors in the industry. But, there are always risks involved. Assuming nothing goes wrong, this stock will be one to hold for years. The problem is that these plays are highly speculative; most of the data are estimated and no one can predict the future. Hyliion could generate zero or negative EBITA for 2022 or it could be much better than it's current estimate. In the end, if you are a young investor, it's the best time to take risks. I'm not saying to go out and buy this stock, but it's easier to take the chance on speculative plays than when you're starting to think about retirement. And I think buying SHLL before the merger could be a good play.

Featured Photo: https://h7f7z2r7.stackpathcdn.com/sites/default/files/images/articles/biza-hyliion.jpg


NETE Mullen Merger

I'll keep this one brief and just talk about the merger as well as why I think this stock is worth considering.

Net Element (NYSE: NETE) is going to merge with Mullen Technology Company, and will also close the deal at some point this quarter like Hyliion. Mullen technologies is an AI company that also produces electric cars. Upon this merger, management will change, and the CEO of Mullen will be the head of Net Element. Because 15% of shares will be given to NETE shareholders, the ticker symbol will not change and continue trading on the NYSE under NETE.

This California based company not only produces EVs but also services an AI-based platform called CarHub that provides an quick and easy way to buy or sell cars. This company's valuation is around $248 million which is relatively small compared to other companies in the industry. According to Zacks SCR, Mullen company supposedly has some highly valuable intellectual property. Taken directly from that article, they mentioned that, "It has valuable lithium battery patents to create batteries rivaling Tesla’s technology. It has a joint venture with Ukrainian company NextMetals Ltd. to create a solid-state battery under a new division called 'Mullen Next'".

The stock has already jumped over 200% since June and is near previous highs. SHLL also had a similar jump after the hype of news on their merger. If NETE can stay above support in the $10.50s. I would probably think about purchasing some of this for myself before the merger happens.


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

One of the reasons for trading Nikola Motors as it went public was because SPACs (companies that take private companies public) have been doing very well lately. A lot of of it is a precedent around potential big plays Bitcoin, FAANG stocks, and Tesla created for young investors. Now that trading has been made so accessible for everybody with Robinhood and other trading apps, money is being poured into the markets of eager investors who want to get rich quick. I am not saying this is a good or bad thing, but this is what's happened over the years. With that being said, SPAC companies are few of the many 'hype' stocks that I think will be attracting lots of investors. So, after NKLA's trade, I want to share some SPACs and acquisitions that I'm looking at and give you my insight on all of them hopefully before the hype.

Uber

Today, Uber announced that they have agreed with Postmates in an all-stock transaction according to businesswire. The deal is worth over $2.6 billion giving Uber a greater market share. Uber will also get a stronger foothold in Los Angeles and Miami from this transaction to expand their business in major cities that were previously dominated by Postmates.

Taking a look at their financials, they are still on the road to profitability, and this deal will probably set Uber back while the company makes a $2.6 billion dollar purchase.

https://finance.yahoo.com/quote/UBER/financials/

Uber's revenue each year since 2016 has been rising significantly due to the popular service that this company provides. But as the company grows bigger, so do their expenses. Although revenue continues to climb, net income and operating income are still negative. Operating income has improved by +$3 billion since last June, but this acquisition will most likely add to the expenses in Q3 earnings.

PE ratio last quarter was -$7.74 and is still negative now going off last quarter's earnings. Typically, a negative PE is not a great sign for a company even though you want PE to be low.

Comparing Uber to another competitor like Lyft, Uber appears to be in the driver's seat. Lyft's operating income is actually getting less and less profitable over the years. Uber's total revenues are almost 4X the size of Lyft, and now with Uber's announcement, their market share is going to be even bigger with this acquisition, creating more room for buyers in the market. And as the pandemic started, Uber Eats continued to operate fully. Most of their revenue came from Uber Eats once take-out became a norm in the US.

OPES Holdings

Opes Acquisition Corp. announced last week that they will merge with the privately-owned BurgerFi restaurant business and take it public under the ticker BFI. This is a relatively small acquisition of $100 million but big news for BurgerFi. With 130 locations around the US, sales covered over $145 million according to Restaurant Business. But they expect a decline in sales this year as restaurants closed for some time. However, by 2021, BurgerFi plans to have 55 new locations ready after they receive $40 million in cash to start more ventures.

https://finance.yahoo.com/quote/OPES/financials?p=OPES

On their income statement, Opes reported a significantly higher operating loss in income in 2019. However, if you look at the net income from 2018 and 2019, they have come out profitable at the end of the year. See how total revenue and expenses tie in to coming up with an operating income or loss. Notice how Opes makes no revenue. That's generally typical for SPACs as they work in generating income from their acquisitions. But with such high expenses in 2019 of over $840,000, Opes was still able to come up with a little over $1.1 million in net income.

Here is OPES on the daily chart. The passed four days have been rough on this stock. Overall sentiment for the stock price is overvalued as it drops 6.4% by the closing bell. RSI is just under 50, and I plan on watching the prices this week to see where the direction is headed. The article mentioned above also states that at some point in Q3, still not announced, OPES expects to officially merge with BurgerFi which will cause a 13X beat in earnings expectations in 2021 of $143 million.

Just by looking at the chart, Opes acquisitions already had their big pop in price from previous announcements in June. I'm not really looking to profit off the hype in this play, rather I'm looking at long term growth aspects that this merger will create for the popular franchise. The stock still seems overvalued for what it's worth, but the future for this restaurant business seems promising. The whole idea of trading SPACs is all about the hype, and it looks like the hype has already happened. BurgerFi is also not as an attractive deal as the Nikola Motors merger last month; let's be honest, restaurants are just not as sexy as the idea of electric cars.

Conclusion

Both companies discussed today show promise, and I'm excited to see how they perform in the future. I'm still on the lookout for more important mergers and acquisitions and will hopefully write about them soon.

Featured Photo: https://communityimpact.com/wp-content/uploads/2019/10/BF-Cheeseburger.jpg


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

Earlier this morning, CAD pairs moved hard on GDP news; CAD/JPY is up over 60 pips already today while USD/CAD tumbled when actual GDP growth/decline beat expectations by 1%. Here are our thoughts on these trending pairs this week:

Short Idea

Here is CJ on the 1D chart. The pair respected resistance back in early June and formed a new resistance after the four-day sell off. Notice how on the 14-Day RSI, prices were above 70 before it plummeted from 81 to 79 in a matter of days. Now RSI is getting higher as the pair pushes up today. If we see heavy movements like this continue, it is likely that RSI will get close to overbought levels again and can signal short interest for traders. One key level we're looking at is at 79.867. That level has been used as support back in October 2019 and even March of 2020. As prices near that newly formed resistance level, we think it's a good level to watch for short sentiment.

Long Idea

Cad Yen on the 4H chart broke out of a falling trend line which could be a good sign for bulls in the short term if prices close above the trend line. Upside looks like CJ has about 70 pips until it hits that key resistance mentioned on the 1D analysis. Similar to the 1D, the 4H chart holds resistance around the same level (79.800s).

Long Idea

Now looking at USD/CAD on the hourly. The better-than-expected news hurt this pair today as it pinned itself on support. The long wick from last hour makes it look like buyers entered to market as we start this new hour at 12:00 pm EST. It looks like this level of mild support could actually be a good long position. 14-Day RSI is around 47, so in between overbought and oversold. The pair could move in either direction, but our sentiment is more bullish than bearish as of now.

Conclusion

As you can tell, we're a little bearish on the Canadian dollar as the economy continues to suffer from negative economic growth for the past few months. Although actual was better than expected, GDP growth is significantly worse than last month. It went from -7.5% GDP growth to -11.6% decline in GDP. In my opinion, that's not good news, and I'm thinking that this move is not going to last.

https://www.forexfactory.com/calendar#detail=116262

Featured Photo: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.poundsterlinglive.com%2Fcad%2F13110-canadian-dollar-feels-the-pull-of-sliding-oil-prices&psig=AOvVaw2QxIxUP0ZDxAUb6mMLaVkn&ust=1593619048458000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCMiXgOjzqeoCFQAAAAAdAAAAABAJ


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram