ridethepig | Stoxx 50 into the elections and beyond📌 STOXX 50
The purpose of the operation here is a clean and simple 5-3-5 sequence to the downside which means the lows are still exposed to another flank attack from those accompanying bears.
This is a very important few weeks and months for volatility and in a roundabout way we must take full advantage of this while it takes place. I don't consider the manoeuvre here to be any different from the elementary operation we took at the beginning of the year in European Equities as we are in the same complacent environment with covid escalating out of control.
As we have discussed together before, the herd must always be wrong and recognising this and the misconception of the v-shapers can only lead to an eventual test of previous support. To the topside, invalidation will come via a closing breach of 3490/3500 as this is the level which is protected via its own barrier.
Thanks as usual for keeping the feedback coming 👍 or 👎
EU50 trade ideas
EuroStoxx bearish ideaWell, the situation in Europe isn't pretty. Let me highlight a couple of issues.
Slowed economic growth
The Euro zone had registered slowed manufacturing growth way before COVID19 hit. The pandemic just hit the nail on the head. The region is now experiencing an economic slow down compared to the 2020 summer season and this is going to affect the recovery in Europe.
Second wave of Covid19 cases
It's already officially that the continent is in the second wave of the pandemic. Lockdowns will further hurt supply chains in the region. However, a full scale lockdown may not happen as governments focus on specific localised targeting. Bars in France have been closed and Madrid is in lockdown (sort of).
Trade issues including Brexit
First, Europe is in the middle of a trade spat with the US. Well, Donald Trump has bully tendencies and hopes to reorganise the world trade order. Whether it's working for the US on not, we'll look into it on another day. However, it is hurting EU exports to the US. Exports to China, Europe's second largest export market, are not growing as expected as China has sort of refused to open up their market as agreed in an agreement between the two parties. China still has protectionist tendencies of it's steel and agricultural industries which the EU may be targeting.
This is just a few of the factors I'm following up with in Europe.
Technically, this index is slowly losing momentum after failing to recover fully from the February drop. On the Monthly chart, the 0.618 level is acting as a strong support.
It has been ranging in the lower timeframes hoping not to slip lower.
However, data may not give investors enough reason to hold on to the equity markets. We could see lower prices soon with the grim data. ECB intervention may stop this slip, but my money is on 3100 target 🎯.
Going longFundamentally, the global demand for the asset is starting to recover moderately, this is a certain by the CFTC data on speculative position (236.5k). This trickle down to the technical analysis. buy position opens after price moves slightly above the consolidation region with target as have indicated.
ridethepig | Stoxx 50📌 Eurostoxx 50 is in question here and we have a good illustration of the ABC outpost. The main target 3,489 is still open for a test but a breakdown here will seal it for the year.
In a nutshell, this is a chart speculating that we are in the very early days of the "C" leg down.
It is the same opening move in play for German Equities, DAX:
This leg down in European Equities will be considered painful for the late buyers; the weakness of the real economy is shown via the following charts.
Unemployment Claims:
US 2's 5's:
Sharp speculators are adopting a wait-and-see policy, the fate of the moves in Eurostoxx depends on the range settlement. Sellers breaking through 3,200 will 'protect' the highs and because of the technical damage done, the flows will finally commit towards +/- 2,475.
As usual...thanks for keeping the feedback coming 👍 or 👎
EU50 bearish countWe had a 5 way impulsive down(1 or A) and now we are on the correction wave 2 (or B) , we are at a fibi cluster so I am expecting the market to crash
wait for the confirmation level to get hit before selling
