Is The Bottom In?

Prepare to hear/read this question at least 5x this week and the next..”Is the Bottom In? Bitcoin respected the 55-WEEK MA as did the Dow Jones Industrials Index held above its 200-DAY MA and the S&P500 bounced off its trendline support from the late Sep low. What about gold’s trendline support at 1760..or the horizontal support on the 10-year yield at 1.38% — in line with the 100-DMA. Figuring our all of these levels make us appear astute and especially clever when they’re all in synch. But the challenge lies with the repetitive manner these levels will likely have to be tested, just as we saw in the SPX bottom of late Sep/early Oct. Back then, the index re-tested its 100-DMA at least 4x before mounting a 450-pt ascent in a mere 7 weeks. All of the aforementioned markets are sure to retest their recent sometime this week (US CPI report due Friday) and most likely next week when the Fed, BoE and ECB all decide on QE and interest rates. One thing we learned during the lows of late Sep/early Oct is to look beyond wicks and focus on the cash close. Whether you’re bullish or bearish make sure to exercise extra caution ahead of next week –considered one of the most important weeks of the year. Earlier today we told the WhatsApp Broadcast Group we were long the DOW30 based on the VVIX/VIX technicals.

Ashraf Laidi
Ashraf Laidi
Ashraf Laidi is an independent strategist and trader, founder of Intermarket Strategy Ltd and author of "Currency Trading & Intermarket Analysis". He is the former chief global strategist at City Index / FX Solutions, where he focused on foreign exchange and global macro developments pertaining to central bank policies, sovereign debt and intermarket dynamics. Ashraf had also served as Chief Strategist at CMC Markets, where he headed a global team of analysts and led seminars and trainings in four continents. His insights on currencies and commodities won him several #1 rankings with FXWeek and Reuters. Prior to CMC Markets, Laidi monitored the performance of a multi-FX portfolio at the United Nations, assessed sovereign and project investment risk with Hagler Bailly and the World Bank, and analyzed emerging market bonds at Reuters. Laidi also created the first 24-hour currency web site for traders and researchers alike on the eve of the creation of the euro. Laidi's analysis of currency markets stand out based on his distinct style in bridging the fundamental and technical aspects of the markets. Laidi regularly appears on CNBC TV (US, Europe, Arabia and Asia/Pacific), Bloomberg TV (US, Asia/Pacific, France and Spain), BNN, PBSs Nightly Business Report, and BBC. His insights also appear in the Financial Times, the Wall Street Journal and Barrons. He has given numerous interviews and lectures in Arabic, French, and to audiences spanning from Canada, Central America and Asia/Pacific.

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