Russell Shor

The USDCAD has charted a higher trough. This is a show of strength and lays the platform for a potential higher peak for the currency pair.

The Federal Reserve’s preferred gauge of inflation is showing signs of moderation. Core PCE came in at 3.9% y/y, which was lower than last month’s 4.3% y/y. On a monthly basis, core PCE printed at 0.1% m/m, which was lower than the 0.2% m/m expected. This shows that the Fed’s efforts are yielding results, because the monthly number annualises to 1.2%, which is lower than the central bank’s target of…

Yesterday, Nike reported better than expected profit for the 3 months ended 31 August (the company’s fiscal first quarter). However, it just missed on Wall Street’s revenue expectations. EPS came in at 94 cents vs. 75 cents estimated, with revenue at $12.94 billion against a forecast of $12.98 billion.

The US real benchmark yield is normalising from an overbought condition. This is rippling through the market, with FXCM’s USDOLLAR also pulling back from an overbought condition. The corollary to this is that the EURUSD is also reacting.

A key driver of the financial markets is the higher real benchmark yield.

GameStop (GME.us) has gapped up on the market’s cash open, and is trading over 3.5% higher, after Ryan Cohen was appointed as president and chief executive officer. The appointment will take place with immediate effect.

The United Auto Workers may extend strike action.

The US 10-year real yield continues to climb higher and is currently at 2.286%, largely due to the Federal Reserve’s narrative of “higher for longer.” This is adding headwinds to the risk market and driving money towards the safety of the dollar. This, in turn, is impacting on gold. The precious metal is moving inversely to the real yield. To this end, the correlation coefficient (bottom indicator) between gold and…

Hollywood writers have agreed to end their strike action. The strike ended in the early hours of Wednesday morning.

Similar to yesterday’s article, the NAS100 is also showing worrying signs of technical weakness. Like the SPX500, the NAS100 has charted a lower peak followed by a lower trough. This puts the growth index into a defined downtrend. Its weekly RSI has also dipped below 50, which is on the bearish side of the indicator. If it maintains below 50 for an extended period, the NAS100 will be under pressure.

As we head towards the conclusion of Q3 at the end of the month, the SPX500 has flashed a serious warning sign. The index has charted a lower peak followed by a lower trough on the weekly times frame. This is a defined downtrend.