US 10 year treasury breaking out after a 1 month consolidation. Stock market could correct if it challenges the last high at 1.71.
Bitcoin broke its 4 months uptrend channel and is threatening to break below the Ichimoku Cloud. It could be heading for the next targets 44700 and 39115. 57000 is a key level. In the short term, do not turn bullish unless price breaks above 57000.
JD.com is exhibiting a short-term bearish price action and is trading below its 100-MA (347) today.
Its current support is at 323, could correct to support levels of 300 and 281 in the short term from its current price of 323.
Stop loss at 358.
After a week of bullish uptrend, the stock is exhibiting a short-term bearish price action today.
Resistance is capped at 28.60, could correct to support levels of 27.33 and 26.49 in the short term from its current price of 27.85.
My chart on UST10 Year Treasury is pointing to a target of 2.5% from the current 1.6% (could potentially spark off a valuation reset in equities)
UST10 Year Treasury – The chart is pointing to a target of 2.5% and the uptrend has started and it is resisted currently at 1.6%, it should break above the 1.6% mark to ahead for the 2.00% level.
The key resistance remains at 2.50% and I expect the Fed will not tolerate rates above 2.5%. This could be the level the Fed will act to bring the long term yield down. The impending yield increase will inevitably result in valuation reset in equities especially the Tech stocks.
The IIF recently released its Global Debt Monitor which reported that total global debt had reached US$280 trillion and the worldwide debt-to-GDP ratio is now at 355%. How this will ever be repaid I have no idea. How this will be serviced if interest rates were to rise is another matter to ponder. debt servicing costs would increase by several trillion dollars should average interest rates simply rise to pre-GFC levels …..more money printing to get out of the debt hole? US personal savings rate has now risen to 20.5% from 13% with the potential to rise even more if biden 1.9 trillion stimulus reaches the US household. The stage will be set for a consumer spending boom , all these are pointing to higher rates and inflation.
China Construction Bank (0939.HK) broke out from its recent year high of 6.55 trading at a high of 6.65 today (08 March 2021) before retracing to 6.59.
It is heading towards testing my first target at 6.66 and if it breaks out further it could be heading towards my second target at 6.84.
If prices break below 6.30, the trade plan is not valid anymore.
Nasdaq-100 broke down from its upper trend channel
The fundamentals of China BlueChem (3983.HK) looks promising with Crop price at 7-year high, driving fertilizer demand and global tight supply of urea. Domestic urea price rose Renminbi 200/ton MoM to Renminbi 2,100/ton in early-Feb, due to spike in global pricing (up more than 30% since end of 2020).
The stock is poised to benefit from the year on year jump in urea given its relatively stable natural gas cost under long-term contracts.
Looking at the technicals, the stock has broken out from its long-term downtrend, trading at a day-high of 2.12 (at the point of this write up) today and its bullish chart pattern showing further potential upside.
First Target – 2.30
Second Target – 2.48
Third Target – 2.95
Stop Loss – 1.75