Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

TimRacette

Breadth, AD Line, Tick, Trin -- How They Can Improve Your Trading?

Recommended Posts

The Market Internals are similar to the instrument cluster on your car, without them you really don’t know which direction you are headed or how fast you’re moving.

 

There are four indicators that make up the core market internals:

  • Breadth Ratio
  • Advance/Decline Line
  • Trin
  • Tick

 

Each indicator has a separate reading for the NYSE and NASDAQ, but our primary focus will be on the NYSE.

 

You can setup your trading screen to neatly display all four market internals in both chart form and numeric form. I have mine setup in grid chart format using the Thinkorswim platform.

 

market-internals.png

 

Specific instructions for setting up your own market internals charts using Thinkorswim can be found at the end of this article.

 

Breadth

 

The ‘Market Breadth’ or ‘Breadth Ratio’ is a volume ratio composed of volume flowing into up stocks versus volume flowing into down stocks.

 

The breadth ratio is expressed: Up Volume / Down Volume.

 

This reading is important in relation to where it has been, especially where we are now compared to where we opened on the day.

 

breadth-numbers.png

 

For example:

 

If at 10:00 AM we have 10M shares moving up and 5M shares moving down, the resulting breadth ratio is 2:1 positive (10M/5M), twice as much volume is flowing into up stocks as down stocks.

 

If at 10:30 AM the market has sold off but we now have a breadth ratio of 3:1 positive, this is a signal that the markets are actually becoming stronger and it’s time buy the pullback, so look for a long setup.

 

Out of all four internals, the breadth ratio is the most important.

Advance/Decline Line

 

The ‘Advance/Decline Line’ or ‘A/D Line’ for short, is the second most important of the internals. This indicator tells us the net sum of advancing stocks minus declining stocks.

 

The A/D Line is expressed: # of Advancing Stocks – # of Declining Stocks

 

There are roughly 3000 stocks listed on the NYSE and 3000 on the NASDAQ. An A/D Line reading of 1,500+ is very bullish and a reading of over 2,000 is extremely bullish. On the flipside readings of -1500 and below are very bearish and readings below -2,000 are extremely bearish.

 

These extreme readings are indicative of trending days where once the market continues to trend all the way into the close. We look to the A/D Line in conjunction with the Breadth Ratio to confirm these trend days.

 

For example:

 

A day with 2,500 advancing stocks and only 500 declining stocks would yield a net of +2,000 (an extremely bullish reading). It would take a large catalyst to shift the market direction with a reading this bullish.

 

If on the open you continue to see the A/D Line moving +500, +700, +900, this is a sign of market strength. If however, the market is moving higher, but the A/D Line is moving lower, a divergence has occurred and could be a sign of a market turn.

It’s important to look to the other market internals for confirmation as one indicator alone is not sufficient to confirm a move.

 

Trin

 

TRIN stands for TRaders’ INdex and was developed by Richard Arms in 1989 (it’s also referred to as the Arms Index). Its main purpose is for detecting overbought and oversold levels in the markets

 

The Trin is expressed: # of advancing stocks / # of declining stocks divided by

 

volume of advancing stocks / volume of declining stocks

 

The resulting Trin # is inverse to the market (a + reading is bearish, a – reading is bullish). A ratio of 1.0 means the market is at parity. A reading of 2.0 means much more volume is flowing into declining stocks. A reading of below 0.6 means much more volume is flowing into advancing stocks.

 

With the introduction of inverse ETFs the Trin has lost some of its appeal to intraday traders.

 

John Carter talks about the Trin in his book Mastering the Trade and has this to say…

 

If the Trin closes below 0.6, the market has an 80% change of selling off the next day.

 

If the Trin closes above 2.0, the market has an 80% change of rallying the next day.

If after closing above 2.0 the markets can’t rally the next day, a major selloff could be in store.

 

Tick

 

The NYSE Tick Index gives us the relationship of stocks up ticking versus down ticking at their last traded price. The Tick is an extremely useful tool for intraday traders.

 

For Example:

 

If there are 3000 stocks trading on the NYSE and 1500 trade higher from their previous price and 500 trade lower than their last price the Tick will read +1000. But wait what about the other 1000 stocks? They could be unchanged from their last price.

 

When using the Tick we are looking for extremes to enter or exit a trade. Tick readings of +1000 or -1000 are considered very strong as we typically trade between 1000 most of the time on the NYSE.

 

nyse-tick-chart.png

 

Tips for Using the Tick:

  • Tick readings within |400| indicate chop, ignore them
     
  • On a range day you can look to fade tick extremes
     
  • A 1 period moving average can make it easier to see the trend of the Tick

 

Note the extreme tick readings for the day:

 

  • When we get a high tick and a high in price at the exact same time, this could indicate the high of the day.
     
  • When a high tick prints without a simultaneous high price we can continue to make new highs, until a new high tick is reached (the reverse is true for a low tick followed by new lows).

 

Here are some live trading videos using the tick.

 

Market Internals Setup Instructions

 

Share this post


Link to post
Share on other sites

Very nice article, unfortunatly not many traders follow these internals and if they did they are not emphasized as much as they should. I takes time to get used to looking at them and understanding their patterns and levels. :applaud::applaud::applaud:

 

Thank You

Share this post


Link to post
Share on other sites
The Market Internals are similar to the instrument cluster on your car, without them you really don’t know which direction you are headed or how fast you’re moving....

 

did you write that article?

Share this post


Link to post
Share on other sites

The market internals are what I trade by. That and support and resistance. I have no use for indicators based on price. All the market internals do trend, and it is possible to make sense of them.

Share this post


Link to post
Share on other sites

Tim,

 

If you like the Breadth Ratio when trading say the ES, why don't you make a ratio

of the bid-ask volume of ES.

ie ask vol/total vol.

 

Perhaps you have already tried this, in which case I would be interested in your thoughts and comparison of the two ratios.

Share this post


Link to post
Share on other sites
Tim,

 

If you like the Breadth Ratio when trading say the ES, why don't you make a ratio

of the bid-ask volume of ES.

ie ask vol/total vol.

 

That's interesting I have not tried that. I'll play with the idea a bit. Thanks.

Share this post


Link to post
Share on other sites
That's interesting I have not tried that. I'll play with the idea a bit. Thanks.

 

You are welcome.

 

The reason I mention it, is because a disconnect has taken place between The Indices and the underlying stocks.

I imagine the QE's are to blame, and so while I agree with your comments in this thread, I have come to accept this disconnect and now trade The Indices as stand-alone Instruments.

Share this post


Link to post
Share on other sites

To take the other side of that argument in playing devils advocate, the indices (NASDAQ for instance), is made up of individual stocks, the NASDAQ internals therefore are made up of data from those stocks so I still would consider them connected.

Share this post


Link to post
Share on other sites
To take the other side of that argument in playing devils advocate, the indices (NASDAQ for instance), is made up of individual stocks, the NASDAQ internals therefore are made up of data from those stocks so I still would consider them connected.

 

 

Good for you Tim.

We each have our point of view and it keeps life interesting.

Share this post


Link to post
Share on other sites

Hi Horace,

 

I have an interest in your comment about the Q's being disconnected from the underlying stocks. Could you elaborate? I agree with the comment, I have noticed that the Qs lead the movement, they moved before the stocks that make it up. Is that what you are seeing. Ofcourse some times they do not all the time

 

cheers

Share this post


Link to post
Share on other sites
Hi Horace,

 

I have an interest in your comment about the Q's being disconnected from the underlying stocks. Could you elaborate? I agree with the comment, I have noticed that the Qs lead the movement, they moved before the stocks that make it up. Is that what you are seeing. Of course some times they do not all the time

 

cheers

 

Yes If you dig into the internals of The Indexes and compare it to Stocks, the disconnect becomes evident.

That is why I only follow the Indexes on the assumption that sometimes they connect and sometimes they don't, but they stand alone 100% of the time.

 

Also, I try to follow the least information possible.

Share this post


Link to post
Share on other sites

"On the surface" the NYSE internals, $TICK, $advancers, $Decliners, UpVolume, DownVolume often do NOT sync perfectly with the ES. So there is a seeming disconnect between those internals and the ES. But, all the internals tell exactly why the ES does what it does if you learn how to "read the tea leaves". There is a complexity to reading the signals, and you have to know how all 3 sets of internals interact with each other. For example, sometimes the $TICK and the ES go out of sync with the $Advancers/$Decliners. But they will sync back up very soon, and the $Advancers/$Decliners usually win the battle.

Share this post


Link to post
Share on other sites
"On the surface" the NYSE internals, $TICK, $advancers, $Decliners, UpVolume, DownVolume often do NOT sync perfectly with the ES. So there is a seeming disconnect between those internals and the ES. But, all the internals tell exactly why the ES does what it does if you learn how to "read the tea leaves". There is a complexity to reading the signals, and you have to know how all 3 sets of internals interact with each other. For example, sometimes the $TICK and the ES go out of sync with the $Advancers/$Decliners. But they will sync back up very soon, and the $Advancers/$Decliners usually win the battle.

 

Yes I agree with you TW, however your use of the word "complexity" sends a cold shiver down my spine as simultaneously a voice alarm goes off in my head "PULL UP, PULL UP, PULL UP"

 

I rather feel that these complex mental gymnastics must be left to far more gladiatorial minds than mine when trading.

 

In fact my trading mind now is very much like a dog on a leash, in that it is allowed to probe slightly to the left, or right, or it may adventure ever so slightly ahead but it's days of glory, roaming through hoards of information with all the thrill and excitement of a Free Range Chicken have come to an end.

 

And so it is not that The Internals lie ahead of me offering all the academic thrill of a new crossword or game of Solitaire ... no not at all ... they in fact lie fondly remembered and used, but discarded like an empty water bottle in a Marathon.

I know where they are should I ever need to return.

Edited by horace

Share this post


Link to post
Share on other sites

I think the discunect can work for your benefit sometimes. I haven't look as close at the markets in the last 3months as I have been busey writing my first "blackbox" But I used the Qs volume with the Qs levels. After the crisis we had, the Qs have been getting sudden burst of volume at lows or highs of the days. at lows these bursts stopped the sincking and reversed the trends and on highs they usually broke the high but failed shortly after.

Share this post


Link to post
Share on other sites

TOS did not know anything about the Breadth Ratio. A thinkscript member offered a thinkscropt for  some indices but not the /NQ that I am trading. Is there  any source for the breadth Ratio?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • By TopAlgo
      Open source code for 2 NT7 trading algos C#
      google drive link in video description
      2 Algos based on point and figure patterns, fully automated, one for crude oil contracts and one for nasdaq futures.
      Free to use, modify, share
    • By Ninjatrader_Staff
      FCM to Provide Simplified Access to the Global Futures Markets
      CHICAGO, IL, August 9th, 2021 – NinjaTrader Group, LLC, a leading provider of trading software and brokerage services, has announced the launch of NinjaTrader Clearing, LLC. As a non-clearing Futures Commission Merchant, NinjaTrader Clearing will deliver innovative Fintech services & a modern user experience for self-directed traders to cost-effectively access the global futures markets.

      “We are extremely excited to introduce a customer-centric experience unique to the futures industry through our FCM,” stated Martin Franchi, CEO of NinjaTrader. “The interest in retail futures trading is rapidly expanding and the opportunity to simplify the client experience will help us continue to deliver unmatched value for our traders.” NinjaTrader supports over 500,000 active traders through a unique combination of high-performance trading software, discount brokerage and real-time support. As an FCM, NinjaTrader will continue to modernize the retail futures industry building upon its best-in-class technology and award-winning services to provide a premium experience for customers across the globe.

      “Retail traders are attracted to the numerous benefits available through futures and our goal is to make these markets even more accessible for both investors and active traders,” stated Franchi. “Through an innovative user experience and cost-efficient services, NinjaTrader will continue to lower the barrier of entry to participate in the futures markets using our institutional grade trading tools.” NinjaTrader Clearing is immediately available to accept new futures accounts. Visit ninjatrader.com or contact brokeragesales@ninjatrader.com to learn more.
      About NinjaTrader
      NinjaTrader provides award-winning trading software and brokerage services to active traders. Founded in 2003, NinjaTrader has evolved into an industry leader supporting over 500,000 traders around the globe with best-in-class technology, discount commissions and world class support.
      To learn more about NinjaTrader, please visit: www.ninjatrader.com.
      Contact:
      Paul Colman
      NinjaTrader
      1.800.496.1683
      info@ninjatrader.com
      FULL RISK DISCLOSURE: Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
       
    • By Ninjatrader_Staff
      Now is the Time to SAVE Even More with NinjaTrader!
      Open a new Futures account by August 31st and receive up to $200 in commission rebates.
      Simply fund your account with the account minimum of $400 and start trading. You will receive a rebate back on all future trades placed prior to October 31st.
      OPEN ACCOUNT
      Why Trade Futures with NinjaTrader?

      FREE Platform included with brokerage account Clear savings through discount commissions Low day trading margins including only $50 for Micros 1000s of Apps & Add-Ons to personalize your platform


      Questions?
      Contact us at 1.800.496.1683 or brokeragesales@ninjatrader.com. *Commission Rebate Requirements:

      Account must be opened & funded in August 2021 with $400 minimum Trades must be executed on or before October 31st, 2021 Commission rebates will be applied to the account holder's balance monthly as a credit up to $0.25 per contract if charged commission exceeds $0.25 per contract or equaling the value of the commission charged if under $0.25 per contract Standard exchange, NFA and routing fees still apply Existing NinjaTrader Brokerage account holders are not eligible for this promotion



      Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.

       
    • By Ninjatrader_Staff
      Open a new futures brokerage account by February 28th with a NinjaTrader Lifetime license & receive:

      Commission-Free Micro trading in March $50 margins on Micros Access to the most powerful version of NinjaTrader Free platform upgrades for life!


      Simply open & fund your new account in February with as little as $400 & purchase a Lifetime license. You will then receive a rebate for commissions on all Micro futures trades placed from March 1st – March 31st.* Open Futures Account
      A NinjaTrader Lifetime license provide access to all premium features including Chart Trader, OCO orders, Order Flow +, and more.
      * Program Requirements:

      Account must be funded by February 28th, 2021 with $400 minimum A new NinjaTrader Lifetime license ($1099) must be purchased by February 28th, 2021 Standard exchange, NFA and routing fees still apply A commission rebate will be applied to the account holder’s balance for all March Micro trades 2nd accounts for current NinjaTrader Brokerage account owners not eligible for rebates


      Futures and Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.
    • By Ninjatrader_Staff
      Open a new futures brokerage account by August 31st with a NinjaTrader Lifetime license & receive:
      Commission-Free Micro trading in September $50 margins on Micros Access to the most powerful version of NinjaTrader Free platform upgrades for life!
      Simply open & fund your new account in August with as little as $400 & purchase a Lifetime license. You will then receive a rebate for commissions on all Micro futures trades placed from September 1st – September 30th.*
      Open Futures Account
      A NinjaTrader Lifetime license provide access to all premium features including Chart Trader, OCO orders, Order Flow +, and more.
      * Program Requirements:
      Account must be funded by August 31st, 2020 with $400 minimum A new NinjaTrader Lifetime license ($1099) must be purchased by August 31st, 2020 Standard exchange, NFA and routing fees still apply A commission rebate will be applied to the account holder’s balance for all September Micro trades 2nd accounts for current NinjaTrader Brokerage account owners not eligible for rebates
      Futures and Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.
  • Topics

  • Posts

    • Date: 21st November 2024. Gold Regains Momentum as NVIDIA Delivers a Revenue Surge! NVIDIA beat earnings expectations, and nearly doubled revenue on an annual basis. NVIDIA stocks dip slightly despite strong earnings and a strong forecast for the current quarter. Analysts expect market participants to purchase the dip. The Japanese Yen wins back some ground as Bank of Japan Governor indicates the regulator will be willing to hike to support the FX market. Gold, Silver and other Metals all rise due to predictions of high retail and institutional demand and geopolitical tensions remaining high. NASDAQ – NVIDIA Surpasses Earnings Expectations! The NASDAQ took a sudden dip on Wednesday measuring 1.50%, however, investors quickly took the opportunity to purchase at the lower price as most indicators fell to give an oversold indication. As a result, the NASDAQ ended the day only slightly lower than the open price, but downward momentum remains this morning. The downward momentum is partially due to geopolitical tensions which are on the rise. Yesterday, Ukraine fired UK-made missiles into Russia and fired US-made the day before. There are also reports and speculations that Russia has sent ICB Missiles into Ukraine for the first time. However, reports are not confirmed, and there are signs of certain stocks recovering. Currently, there is no economic data which is driving the lack of demand, therefore investors are mainly concentrating on NVIDIA earnings. NVIDIA beat earnings expectations by 8.50% and revenue by 5.90%. Investors were particularly impressed by the significantly higher revenue which has almost doubled annually. In addition to this, the forecast given for the current quarter came in relatively strong. Lastly, the CEO, Jenson Huang, said to Bloomberg that demand exceeds supply but the company is setting in place measures to boost supply in order to meet the high level of demand. Taking into consideration the strong earnings, positive tone and upbeat forecasts for the coming quarter, many may wonder, “why is the stock declining 2.50% during this morning’s Asian session?”. This is partially due to the lower risk appetite, but also due to certain forecast expectations for NVIDIA not being met. The average NVIDIA forecast expectations from Wall Street firms was $37.1 billion, which NVIDIA comfortably surpassed. However, certain firms had expectations as high as $41 billion. Based on these higher expectations, the company underachieved and could trigger a lack of demand from this sector of Wall Street. Though many analysts continue to expect shareholders to purchase the lower price as long as the stock market will remain favorable.   EURJPY – BOJ To Consider Hike! The EURJPY declines for a second consecutive day, particularly gaining bearish momentum after this morning’s Bank of Japan press conference. The main takeaway from the press conference was that the Governor told journalists that the BOJ was willing to hike interest rates in the upcoming months but decisions will be made meeting by meeting. The Bank of Japan’s decision to raise interest rates in July was influenced in part by the weak Yen, which had driven up import costs and inflation. At the Europlace Financial Forum in Tokyo, Governor Kazuo Ueda emphasized that exchange-rate fluctuations are a key consideration in shaping economic and inflation forecasts. He noted that the central bank carefully examines what is driving these currency changes when assessing their impact. The EURJPY now trades below the 75-Bar Exponential Moving Average and below the 50.00 on the RSI. In addition to this, the exchange rate continues to form lower swing lows while the Euro underperforms against most currencies. These indications point towards a potential downward price movement.   Gold – Geopolitical Tensions Send Gold on a Bullish Path! Gold has increased in value for a fourth consecutive day, driven largely by geopolitical tensions. Additionally, the absence of significant US economic news has left markets uncertain about the Federal Reserve’s next move. Gold is currently witnessing an active buy signal from most momentum-based indicators due to the strong bullish momentum. For example, traders are able to see the price trading above the Bollinger Band, within a bullish moving average crossover and significantly high on most oscilators. However, investors should note as the price increases, the asset can become overbought and this may trigger a retracement, a correction or sideways price movement. In terms of geopolitical tensions, hopes for a Middle East ceasefire are being tempered by Russia’s revision of its nuclear doctrine, which aims to strengthen its borders after the US-approved long-range strikes from Ukraine reached deep into Russian territory. Meanwhile, Donald Trump’s re-election has yet to significantly influence the conflict, though markets remain optimistic about potential positive developments following his January 20 inauguration. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.  
    • AMD Advanced Micro Devices stock with local support and resistance at 131.19, 138.37, and 146.97 at https://stockconsultant.com/?AMD
    • MD Pediatrix Medical stock watrch, good trend, pull back to 14.42 support area with good trade quality at https://stockconsultant.com/?MD
    • WGS GeneDx stock watch, pull back to 70.29 gap support area with bullish indicators at https://stockconsultant.com/?WGS
    • Date: 20th November 2024. Market Rebounds as Putin Signals Readiness for Peace Talks; Focus Shifts to NVIDIA! US Stocks drop to a 2-week low after Ukraine fired US-made missiles into Russia, but rebound in the US session. Putin updates nuclear doctrine, allowing Russia to strike Ukraine if it uses weapons from nuclear-armed nations. Walmart again beat earnings expectations pushing the stock 3.00% higher. Earnings Per Share beat expectations by 8.00%. The Japanese Yen loses momentum and corrects back to previous lows. The US Dollar maintains strong bullish momentum. UK Inflation Rate rises from 1.7% to 2.3% supporting the GBP despite budget concerns continuing. NVIDIA is set to release their quarterly earnings report after market close. NVIDIA stock has risen more than 5.00% indicating the market expects a beat. NASDAQ – All Eyes On NVIDIA Earnings Report! The NASDAQ ended Tuesday 0.71% higher despite coming under significant pressure during the Asian and European session. The NASDAQ fell 1.20% during the day’s first two sessions due to geopolitical tensions triggering a much lower risk appetite. This is due to the US as well as other countries agreeing to allow Ukraine to strike Russia with foreign made weapons. Ukraine quickly took advantage of this by firing ATACMS into Russia. Russia responded by changing their nuclear weapon use doctrine. Here we can see why the global stock market fell rapidly. However, why did the market recover during the US session? During the US session, the risk appetite and confidence of the market improved as the White House confirmed nothing changes with Russia changing their Nuclear Weapons Doctrine. In addition to this, President Putin also said that he would be willing to start peace talks with President Elect Trump. Lastly, the market also took the opportunity to purchase the lower price since NVIDIA’s earnings report is imminent and Walmart already beat their earnings expectations. Walmart is not a component of the NASDAQ, but has improved the sentiment towards the US stock market. NVIDIA, which is on the NASDAQ, is set to release their quarterly earnings report after market close. NVIDIA stock rose 4.89% yesterday and a further 0.47% this morning indicating the market expects a beat. Analysts expect the company’s Earnings Per Share to rise from $0.68 to $0.75 and revenue from $30.04 billion to $33.14 billion. As no US economic data is set to be made public throughout the day, investors are solely concentrating on geopolitical tensions and earnings. The price of the NASDAQ rose above the 75-bar exponential moving average on the 2-hour chart for the first time since 14th. Traders will be monitoring whether the index will be able to maintain momentum above this level and if the price may also rise above the 100-bar SMA. Traders will be waiting for the NASDAQ to regain bullish momentum and if so will act accordingly. Buy signals are likely to rise if the price increases above $20,764.30 and intensifies above $20,777.93. GBPUSD – UK Inflation Rises Above Expectations! The price of the GBPUSD increased in value taking the exchange rate to a 1-week high, but concerns remain according to analysts. The exchange rate is trading 0.30% higher after the UK made public their latest inflation rate. The UK inflation rate rose from 1.7% to 2.3% which is higher than previous expectations and considerably higher than the previous month. The GBP is currently the best performing currency with the Pound index trading 0.21% higher. However, the second best performing is the US Dollar Index which is trading 0.14% higher. Therefore, investors need to be cautious that a retrace or correction is still possible while the US Dollar Index remains high. Currently the Pound is coming under pressure from the Autumn Budget and from farming strikes which are continuing. However, comments from the Bank of England could support the currency. The BoE warns that planned National Insurance hikes in the Labour budget may drive up prices, slow wage growth, and reduce hiring. Significant inflation could force prolonged tight monetary policy. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.