Dollar Not Backing Down! 🫨

TradingTLDR

Oct 16, 2024 — 5 min read

Happy Wednesday, Traders!

Are you ready for a game-changing update?

Today, I want to remind you of Steve Clark’s powerful words: “Do more of what works and less of what doesn’t.”

In this edition, we’ll break down the seven crucial updates that capture the trending market news.

And don’t miss our “Mind Over Markets” section, where we’ll spotlight an inspiring trading genius whose strategies can elevate your game.

To top it all;

A UNIQUE offer awaits YOU at the end of this newsletter.

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🇨🇳🛢️ Oil Prices Plummet as China Woes Continue
A double blow to the Chinese economy sent oil prices plummeting. Brent crude futures dropped 86 cents, or 1.1%, to $78.18 per barrel, while U.S. West Texas Intermediate crude futures fell 83 cents, also 1.2%, to $74.73 per barrel. What are the implications?

💵📌 Dollar Holds Gains as China's Stimulus Falls Short
The dollar surged as China's stimulus fell short of expectations, leaving markets disappointed and uncertain about the country's economic outlook. The absence of significant economic data has also reflected on other major currencies; the pound, euro and Australian dollar.

🧨📉 Investors Seek Safe Haven as Bond Market Suffers Volatility
The recent surge in Treasury yields and the rising volatility have made it difficult to determine the optimal investment strategy. See what the experts are saying to mitigate risks.

🩺 Consumer Health in Focus as Earnings Season Heats UpAs investors eagerly await the latest earnings reports and retail sales data, the health of the U.S. consumer takes center stage next week. Recent layoffs, hurricanes, and a brief dockworkers strike have introduced uncertainty. Can we expect considerable relief?

👷🏦 Base Metals Slip Amid China's Stimulus Uncertainty
Base metals prices took a hit on Monday as investors reacted to China's lack of concrete details regarding its economic stimulus plan. The combination of insufficient stimulus and worsening deflationary pressures in China has dampened market sentiment.

📊 Gold Prices Steady Amid China Stimulus and Fed Rate Cut Expectations
Gold prices remained relatively unchanged on Monday as investors weighed the impact of China's recent stimulus announcement and anticipated comments from Federal Reserve officials regarding future rate cuts.

🪙 Bitcoin Surges, Liquidating $100 Million in Short Positions
Bitcoin's price surge has caught short sellers off guard, resulting in over $100 million in liquidations in the past day. As October draws to a close, analysts are speculating about a potential "Uptober" rally, fueled by Bitcoin's recent momentum.

Broadening Formation

The broadening formation is a reversal pattern, suggesting that a trend is nearing exhaustion and could soon reverse.

It's like the market is reaching a boiling point, where the conflicting forces of buyers and sellers are creating a crescendo of volatility that could culminate in a significant price swing.

What to Look For:

Expanding Price Swings: The hallmark of a broadening formation is a series of increasingly wider price swings, with both higher highs and lower lows. This creates a funnel or megaphone-like shape on the chart.
Increasing Volatility: As the pattern progresses, the price fluctuations become more pronounced, reflecting growing uncertainty and indecision among market participants.
Breakout: The pattern is confirmed when the price breaks out of the broadening formation in either direction, often with a sharp and decisive move. This breakout can signal the beginning of a new trend.