Hi investors! Here’s your 5-minute stocks and cryptocurrency market update. Remember that investing in the financial markets involves risk of loss. You should only invest the money that you can afford to lose. Make sure to calculate your risk tolerance before selecting the assets to invest in. Forex and crypto are especially high risk.
Join me LIVE on Thursday for a brand new MasterClass: http://bit.ly/investdivalive
Forex Market Overview
On Monday, the European Union agreed to a potential three-month Brexit delay that Prime Minister Boris Johnson had vowed never to request, China said parts of the trade deal with the US is basically completed, and oil prices fell on weak Chinese industrial data. On Tuesday we have the US Consumer Confidence Index and Australia’s Consumer Prices Index.
Taking a Closer Look at AUD/USD
Today I’m looking at the AUD/USD pair which completely failed to break above the daily Ichimoku cloud and the 50% Fibonacci retracement level of 0.6880. Instead, it now appears to be forming a double top bearish reversal chart pattern. On the other hand, the future Ichimoku cloud is turning slightly bullish.
So if the drops are capped at the 23% Fibonacci retracement level of 0.6779 or even the key support of 0.6691, the pair could give the longer-term bullish move another try. At this point, a break below 0.6691 is unlikely. Of course, trading in the financial markets involves a risk of loss and you should only trade the money you can afford to lose.
In my book, Ichimoku Secrets, I explain how this could be an interesting buying opportunity provided you’re willing to take the risk. For more on Ichimoku strategy development, don’t forget to grab the PDF version of my book, Ichimoku Secrets.
Crypto Market Overview
After an extensive period of limited action, Bitcoin finally got the bump that many of its holders were hoping for. Over the course of just 24 hours, Bitcoin was able to increase by more than 30 percent. It even briefly broke the $10,000 mark. Since then, the coin’s price has stabilized. But there are still plenty of investors rooting for another rally later this week.
On a scarier note, the Chinese government announced that it wants its members to prove their loyalty to the party via blockchain. We’ll see if trends like this grow into something larger. We’ll also see how China—the world’s most populated country—can manipulate various crypto markets.
One exciting story to emerge this week came from Bakkt, who announced plans to deliver a consumer-friendly crypto app at the beginning of 2020. The proposed app can be used for a wide range of consumer transactions, including paying for coffee at Starbucks. As long as apps like these keep up with their successful developments and launches, crypto technology can be expected to continue its gradual push into mainstream society.
Stock Market Overview
Following a week full of positive earnings statements—especially coming from companies within the tech industry—most of the stock market’s major indexes once again worked their way into record-breaking territory. The S&P 500 is once again above the 3,000-point park and is trading near its highest values of all time.
One of the big winners from last week was Microsoft. Not only did the company release some impressive financial reports, but it was also awarded a multi-billion-dollar contract from the Federal Government (beating out Amazon in a stiff competition). Another blue-chip stock that enjoyed a bump this week was AT&T, who has enjoyed a new wave of stability that some outsiders might call surprising.
There are still plenty of important earning statements due this week. So you can expect to see the market continue experiencing an above-average level of movement. Keep a close eye on how Google addresses its increased costs and declining profits. This is despite the fact that revenues have been on the rise. As long as you can pay attention to the markets, you’ll find plenty of opportunities to earn a profit.
I’ll be sharing my personal investment strategies for forex, stocks, and cryptocurrency in Invest Diva’s Premium Investing Group, aka the PIG on Tuesday.
Last but not least, learn how to start, manage and grow your investment portfolio in all these financial markets (without being stuck to your screen all day) by attending my brand new Master Class.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.