Y Venture - Today's Price Action Could Indicate That The Big Boys Have Distributed !

Y Venture - Today's Price Action Could Indicate That The Big Boys Could Have Distributed at 0.15. A break below 0.14 support will bring the stock to  0.132, 0.12 and 0.101

All posts and charts are for educational and illustration purposes only

Four Signs the Gold Bull is Back

Gold break out of 6 years downtrend. I have called a buy on Gold since my market outlook on 23 mar when gold prices was at 1315. Back then the call to overweight on gold was the bearish outlook for the US dollar, the impending recession due to the inverted yield curve and the expectation of the central bankers reverting to another monetary stimulus in the form of modern monetary theory if recession sets in.

I see 4 signs why the gold bull run is back. First, despite a strong dollar gold was quickly closing in on multi year highs. Second, and perhaps more important, gold mining stocks are outperforming Gold for the first time in many years. This is evident in the Gold ratio index. Because gold stocks provide leverage to the price of gold, they tend to move faster than gold if it is a real bull run. Thirdly Gold is also outperforming the other precious metal like silver and platinum. Fourthly. the world’s biggest central bankers are all preparing to flood the world with “easy money” again and add in the rising Middle East tension and your can expect a explosive move higher.

All posts and charts are for educational and illustration purposes only

GOLD - Broke out of a 6 years downtrend! Today's Price Action Signal a Bull Run has just started.

All posts and charts are for educational and illustration purposes only

HK Extradition bill could inflict huge damage on HK economy and stock market

The passage of the extradition bill could be a tipping point for the removal of US-Hong Kong Policy Act which can potentially inflict huge damage on the Hong Kong economy and its stock market

The passage of the extradition bill could potentially be the tipping point in US-Hong Kong relations, from which the US begins to seriously question whether Hong Kong is justified to receive special treatment from the US.

The US is also concerned that the proposed changes “could create serious risks for US national security and economic interests in the territory. If passed, the bill could potentially violate several key provisions of the US-Hong Kong Policy Act of 1992” “ and subject US citizens residing in or visiting Hong Kong to China’s judicial system.

There are fears the US will revoke the US-Hong Kong Policy Act. The policy act treats Hong Kong as a separate jurisdiction from mainland China and gives Hong Kong special treatment with regards to matters trade and commerce . For example, Hong Kong is not subject to the tariffs imposed by the US on Chinese goods in the current trade war.

I believe that the risk of the US withdrawing the US-Hong Kong Policy Act immediately is small since Donald Trump has not sound any serious opposition so far . Removal of the US-Hk Policy act could also set off the withdrawal of foreign investment in Hong Kong businesses and asset from a loss of confidence.

All posts and charts are for educational and illustration purposes only

Dow Jones - Key Resistance at 26090

Dow Jones had one of its best rebound this year, rebounding 1200 points over the last 4 days. According to this trade plan, the key resistance stands at 1600. A pullback to 25620 and 25450 in the short term is expected.

All posts and charts are for educational and illustration purposes only

Short Term Outlook and Strategy

The G20 meeting scheduled on 28 – 29 Jun in Japan where Trump said he will meet with President Xi. As G20 meeting approaches it could spark some short covering and buying interest. However this blog believes that ‘Red lines’ indicated by the China White Paper makes quick deal is unlikely as “China will not sign a deal that does not immediately remove all tariffs on Chinese exports” and “China will not sign an agreement that requires unrealistic increases in China’s purchases of US goods. 

The initial request by the US, that Chinese imports rise by US$200bn is already borderline unrealistic.” The recent China PMI figures shows that manufacturing is contracting.  Thus monetary policy support will continue, but demand from the real economy is not catching up. If the trade issue escalates, there will be more earnings cuts in the future. Offshore markets will be affected by Rmb depreciation. Stick to consumer sector, with strong domestic demand is good, dividend plays, such as utilities but not banks because of the low interest rate environment.

All posts and charts are for educational and illustration purposes only

RHO Index Key Levels - Recent Highlights

On 27 May, the first trading day after our first anniversary, both our predicted day high and day low for China A50 were hit. On top of that, we had 3 take profit signals for the long trade, followed by a bonus short signal after it had reversed from the day high. The intra-day range of our prediction today was 318 points. 

We are constantly enhancing our RHO robot's algorithm. On 29 May, 2 trades were triggered, and our RHO predicted day high was hit twice. As you can see from the illustration below, subscribers received step by step notification for entry and profit taking.

We had two buy signals for S&P 500 on 3 June. Here, we can see the advantage of a responsive algorithm. After the first buy signal, the take profit signal was sent less than an hour later, right after it had reversed from the peak! Without the robot to signal the first take profit, it would been back to square one. Shortly after that, the second buy signal was triggered, and we took all the profits within 30 minutes.

The same night, our RHO prediction for Dow Jones was also triggered, but it was a signal to short! What's more impressive is the take profit signal which was sent just before the rebound, which would have erased the gains. Also see that the partial profit and full profit signals were just 2 minutes apart, which shows the responsiveness of our algorithm in protecting the profits made.

You may visit Tradingkungfu.com/keylevels to try out the signals!

All posts and charts are for educational and illustration purposes only