US Stocks - A Roller Coaster Ride - TUG of WAR between #BULL & #BEAR

Or Simply another SHAKE-OUT!

The Dow Jones industrial average regained lost ground by recovering 239.62 points, or 1.3%, to 18,325.07 in US session. Meanwhile, the SP500 index rose 31.23 points, or an equivalent 1.5%, to 2,159.04. And the Nasdaq composite was up 85.98 points, or 1.7%.

Meanwhile in Asia the Hang Seng Index is up by 202.78 points at 23493.38 or 0.87%, the Nikkei 225 Ave. at 16729.04 is up with barely 64.45 points and the US based EPHE at for the 10 most traded corporate Philippines stocks is up slightly priced at 36.79 points or 0.82% higher, tracking the PSEI at 7547.90 as of writing. Saving itself due to the holiday schedule from the negative contagion of the other Asian stocks that followed the decline of the US last Friday.

US Stocks A Roller Coaster Ride ...

The 1M Dollar Question Finally Answered

UPDATE: The FED came through with the minimal rate hike and a dovish yet gradual pace of how the market would perform moving forward. The market's relief rally was an added bonus contrary to the lack of volatility. And this fact have supported the recovery of the US Dollar.

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Expect the Unexpected

Is the market ready in the 'unlikely event' that the FED does an ECB Draghi like Switcheroo?

With Stocks & USD declines ...UNCERTAINTY ... does pivot into play. Cautiously, will all watch and learn!

Have a "Great Season's Holiday!"  ONLY THE BEST FOR YOUR TRADES!

Fundamentally Motivated Market Justifies Technical Market Call...

ON THE USD & ROLLER COASTER RIDE FOR THE DOW

With China throwing in the mix of a 2% devaluation a new set of currency war are present particularly in the Foreign exchange market. Volatility in stocks and the FX market can be seen and obviously felt by investors as uncertainty to curb a declining China market will take its toll once the right opportunity comes into play. The Chinese government would do everything to tame and take control of its flagging market where exports have shown its weakness in the first place aside from the property market.

Although, one thing is for certain now is that the weakness of the US Dollar is reflected in the current levels trading below the 97.00 basis point have justified our market call supporting the three technically motivated chart formation we have shown on our market view analysis dated the 7.31 towards the 2nd of August, 2015 (Video support below). 

Contrary to its major trend of the USD; a collective effort of short-sellers and short-covering activities are being traded as of this writing. Expect daily pullbacks in the currency pairs across the board during the daily session moves. The ill-effects of China's move have dampened bullish traders on the USD as early as today's trading session in the US market. Spill over effects of trading would continue towards the Asia and European trading sessions before the week is over and affecting USDJPY and Yen related crosses at this junction versus the European majors included. Not to mention, the continuing Dark clouds on stocks that may eventually trigger a long standing correction once 17k is breached. Watch for the market behavior on all markets before making a serious trade execution to avoid unnecessary losses.

Recall Chart configuration as of 7.31.2015
Please refer to the Link:
https://youtu.be/tOXiL1GwN_c 

Wall St Gains - China Cuts Rates - Neutralizer - Asia Follows Stocks Higher

 

Wall St. has every reason to celebrate the Dow's recent gains from last Friday's NFP report that led it back above 18100 levels. A retest of its previous high @18288 may well be made this trading weeks ahead whenever a USD move would align in the same directional trend higher.

This has given the USD valid reason to hold lost ground and move higher at the opening of the Asian trading session. In the course of price action but not limited to the technical Gartley formation previously discussed;  the DXY higher opening levels is directly related to the Dow's last Friday's stronger closing which provided an incentive for investors to see a continuing direction for stocks. A lot of disappointed analyst that has been calling a major Dow decline faces the ever ending question when will this occur?

Watch for the re-surging volatility and fundamental drivers that may unexpectedly show the coming weeks. For now the DOW and again the USD should be monitored well as they are our main deceive market indicators. This is on top of the recent rate cut from China over the weekend Sunday as giving more flexibility for banks to provide a competitive interest rates adjustments for deposits and encourage better relations for credit and loans to pickup that would counter a slow growth for the year.

This move have been a market neutralizer for the China stocks and Hong Kong to make adjustments that saw Asia opening on stocks to move in the same upward direction the same way Wall St. finished with a positive tone last Friday.

Insight: Capital Flight From USD

Following a record high on Wall Street, the Chinese Reminbi or better known as the 'Chinese Yuan' have plunged to its biggest drop in over three years which was mainly due to its contracting economy and talks of credit-tightening that have pressured china's stock market at the same time.

The market conditions would be ripe to also trigger real estate prices to move initially lower for now while the market tries to steady investors behavior moving forward this week's market activities. Meanwhile, the positive mood among US and European stock investors has somehow helped spill-over interest in Asia with Japan's Nikkei moving by a 1.4% and going beyond the 15,000 key price level, which in turn has provided the US Dollar / Yen to move better to the 102.56 USDJPY to this writing.

Capital Flight From USD