FaithMight - Page 16 of 78 - Market commentary and analysis insights. Brought to by FM Capital Group.

August 5, 2022August 5, 2022

SPX Continues To Rebound

In the second trading day of January 2022, SPX hit $4800 which is the all-time high. Afterwards, SPX experienced lower lows and lower highs which resulted in a fall in price to the 2022 low of $3635 in mid-June 2022. While SPX fell between January and June, it established a couple of resistance levels with the last resistance level before the year’s low being at $4179 which was in the beginning of June.

Since the 2022 current low of SPX which was reached in June at $3635, the price of SPX has continued to rally. This rally has taken the price above the $4000 psychological level. In the last 5 trading days, the price of SPX has been able to close above $4000 as the current price is at $4152. A breakout from the June resistance level may occur and price could reach $4200 but this is not guaranteed.

The reason why the upside movement of SPX can’t be guaranteed is because the momentum on the bulls is waning. On the flip side, whether price reaches $4200 or not, the bears might eventually take over and push price below the current low and a new low might be formed below $3635 as RSI is currently showing that price is overbought on the 4H timeframe.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks indices in your portfolio? Schedule a meeting with us here

August 3, 2022August 3, 2022

Global Recession And Its Impact On The US Dollar

A global recession is a downturn that affects many nations around the world i.e. a period of economic downturn or declining economic output. The IMF defines recession as a decline in annual per-capital real world GDP (Purchasing power parity weighted) backed up by a decline for one or more of the seven other global macroeconomic indicators: Unemployment rate, per-capital investment, capital flows, oil consumption, industrial production, trade, per capital consumption.

A simpler definition of recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Here are reasons for a recession in 2022

High Interest rates
Stock Market Crash
Falling Housing Prices and Sales
Deregulation
War/Post-War Slowdowns
Wage-Price Control
Deflation and Inflation

The US Dollar against major currencies has reached its highest level since two decades. There was parity between the Euro and US Dollar last month for the first time in over two decades. Prices of major currencies have moved against the US Dollar in the past one week. These corrections in the price of currencies against the US Dollar might be temporary. So far in 2022, the US economy has done better than a lot of economies.

The Russian invasion of Ukraine has led to a sharp fall in global markets and caused a sharp increase in the price of energy, food, and other commodities. The economic sanctions imposed on Russia and the retaliation by Russia have limited global trades.

In the next few months, the US Dollar might appreciate further against major currencies, which could eventually slow down the effect of the recession.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks, currencies in your portfolio? Schedule a meeting with us here

August 1, 2022August 1, 2022

Hertz Share Price Jumps

Hertz Corporation is a subsidiary of Hertz Global Holdings, Inc. Hertz is an American car rental company based in Florida. The company operates approximately 12,000 corporate and franchisee locations, both domestically and internationally. Since Hertz had its IPO in October 2020, it has been a jolly ride for its investors. Price at IPO was at $1.20. At the time of IPO, global companies were gradually resuming operations post lockdown. There was a range in price from October 2020 to May 2021 where price moved between $0.43 and $2.69. After the breakout in price in May 2021, there has been a phenomenal increase in the price of Hertz. In November 2021, price reached $46.02, which stands at the all-time high.

RSI has shown on the weekly chart that price has been overbought since May 2021. Despite this indication, price rallied to the all-time high. The year’s opening price was at $25.96. The year’s current low is $15.33 which was hit in February 2022. The Hertz shares have not been doing so well this year because of the price ranging between $14 and $26.02. A gap-up occurred yesterday which made price reach the $20 psychological level yesterday. This could be a huge relief for investors in 2022. This rally might continue as price could hit $24 in the coming weeks.

July 25, 2022July 25, 2022

Snapchat Loses 39% Of Share Value In 24 hours

Snapchat had its IPO in March 2017 at $24. The first two trading days closed with the bulls in charge. The third trading day had the bears gaining traction and this traction transitioned into a full-blown bearish run up until December 2018. In that month of December 2018, Snapchat share price hit $4.88, which stands as the all-time low.

2019 began on a brighter note in comparison to the previous year as the first seven months of 2019 closed bullish. This bull trend couldn’t complete a year-long run as price ranged between $12 and $18. A few months into 2020, precisely in April, the bulls became active while price was about $11. On the monthly chart, a bullish steam picked up and it raved on until Snapchat’s share price hit $83, which stands as the all-time high. This all-time high was reached in September 2021.

Ever since this all-time high was hit, Snapchat’s share price has been falling heavily. Since September 2021 till date, all monthly candlesticks have closed bearish except for February 2022. So far, Snapchat has lost over 87% of its all-time high. Since May 24 2022, the price of Snapchat has been ranging between $11 and $15.

On the 22nd of July, 2022, a gap down occurred that resulted in a 39% loss in value as price fell from $16 to $9.97. The last time price got to this level was in March 2020 during the lockdown. In the next few weeks, we could see price rallying above $20 as price is currently oversold on the RSI.

July 19, 2022July 19, 2022

Gold Price Reaches A New 2022 Low

Gold opened in 2022 at $1830 per ounce and for the first part of the month, it was bullish. But then it changed direction and began to fall until it eventually closed on a bearish candlestick at $1796. As February 2022 began, the bulls got their groove back and were dominant for the next couple of weeks which caused February and March 2022 to both close with bullish candlesticks.

Gold price movements in 2021 was more of a range between $1907 and $1705 on the monthly time frame. The range was even more pronounced in the second half of 2021. The highest point Gold reached in 2021 was $1960. Looking at Gold this year, the highest point it has reached is $2067.

On the 23rd of February 2022, we forecasted that Gold may not be able to keep up the bullish rally (see article). We were correct on that call because since March 2022, Gold has been falling. On the bearish run, Gold’s price fell to $1699, which stands as the lowest point this year. In the publication referred to earlier, a support line was drawn at $1676 and our analysts believe that with the current bearish force on Gold, that support level could be broken to the downside.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

July 17, 2022August 19, 2022

UNCHARTED Podcast: Episode 6

In this episode of UNCHARTED Podcast, we discuss Cryptocurrencies, Commodities, Stocks, and the prevalence of the US Dollar on the Currencies Market.

On the Cryptocurrency front, we discuss Bitcoin, Ethereum and Solana, and what investors in this asset class could expect in the coming weeks and months. On Commodities, we discuss Gold, Brent Oil and WTI Oil. We also made some forecasts on both Oil and Gold. We then looked at S&P 500, Disney, and Coinbase on the Stocks front.

Watch and Enjoy.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stock indices in your portfolio? Schedule a meeting with us here

July 15, 2022July 15, 2022

Dow Jones Loses Over 5000 Points In The First Half Of 2022

The Dow opened in 2022 at $36,313 and the year kicked off into a rally. For the first two trading days, the Dow continued to rally and on the third day it shot all the way up to $36,943, which now stands as its all-time high. Since the all-time high, price has dipped and every month in this year except for March and May have closed bearish.

A little backstory on the Dow. During the lockdown, specifically in March 2020, Dow Jones hit $18,300, a dramatic fall from the then all-time high at $29,550. Following the ease of lockdown, the Dow bulls got back in action and the price began a rally from April 2020 up to January 2022 – a 21-month bull run.

Last month, i.e. June 2022, price went as low as $29,642 and the month eventually closed at $30,767. The last time price was at $29,642 was in December 2020. In the next few weeks, we might be seeing price rally to $31,000 from its current price at $30,772.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stock indices in your portfolio? Schedule a meeting with us here

July 14, 2022July 14, 2022

1 Euro Equals 1 Dollar, First Time in 20years.

The appreciation of the dollar against other currencies continues as a two decades record has been broken. From the time EURUSD has been listed on trading-view in May 1993, the lowest price of EURUSD stands at 0.82623. in November 2000. That is to say, the US dollar gained more than the EUR since its listing on trading-view. For another 8 years, the EURUSD appreciated to an all-time high at 1.6000 specifically in April 2008.

Since the appreciation of the EURUSD to the all-time high at 1.60000, on the monthly chart, there have been lower highs and lower lows. This movement signifies a downtrend. For the first time in 20 years, the EURSD reached a par as 1 EUR equals 1 Dollar on the 12th July, 2022. in the next few months, Euro might bounce from the current support at 0.99960 to a new resistance at 1.07657. Currently, the dollar looks strong.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get currencies in your portfolio? Schedule a meeting with us here

June 29, 2022June 29, 2022

ETSY Loses More Than 8% In One Day

Since the all-time high of Etsy was reached in November 2021 at $309.06, price has continued to dwindle as it has lost over 75% of its all-time high. The price of Etsy at the beginning of 2022 was at $222. Etsy has not recorded any profits this year as price has kept falling from the opening price of the year.

Etsy’s share price is currently at $74.04 and the current support level sits at $66.98. Earlier in the year, precisely between February and April, there was a range in price between $113 and $164. The price broke out late in April which led the price to reach its current support level in mid-June 2022. This support level was last reached in May 2020.

On the daily, weekly, and monthly charts, there are no indicators of price being oversold on the RSI. Could this be an indication of a possible continued downward run of Etsy’s share price keeping in mind that on the 28th of June, 2022, the price opened at $79.11 and closed at $74.04 which was an 8% loss in just a single day? On another hand, candlesticks on the daily time frame indicate that price has been consolidating. From our analysis, we see the bears continuing to push the price lower despite the consolidation.

June 28, 2022June 28, 2022

USDJPY Reaches 136.00, First Time Since September 1998

On the USDJPY monthly chart, it took it 12 years for a head-and-shoulder pattern to be formed. The first shoulder was formed in 2004, followed by the head in 2011, and the second shoulder was formed in 2016. After the second shoulder was formed, price ranged for 6 years before a major rally started. Despite the lockdown across the world in 2020, the YEN only gained the USD with few pips.

For the past 12 years, the USD has shown to be a stronger currency. The lowest price of $USDJPY was $5.956 in February 2012. The current price is at 135.508. The highest value of USDJPY since 2002 has been 135.126. Price was able to surpass the 2022 high few days ago after price reached $136.822, the highest price since September 1998. A consolidation in price might occur has the USD dollar has been massively gaining against the Japanese yen since the beginning of 2021.

This expected price consolidation might make price fall, which could in favour of the YEN in the next few weeks. The price could be at 130.00

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get currencies in your portfolio? Schedule a meeting with us here