QuiCQ 24/09/2024
“If you want to find the secrets of the universe, think in terms of energy, frequency and vibration".
— Nikola Tesla
Prefer to read today’s QuiCQ in PDF? No prob, download it here, but don’t you dare complain about the formatting!
Not too much to write about yesterday’s session, other than that we got YET ANOTHER ALL-TIME HIGH (ATH) … but after hit approximately 40 news all-time highs this year alone, I guess nobody is surprised anymore, right?
Some dovish Fed talk post last week’s FOMC and increasingly louder whispers about the next few cuts also being 50 basis points have been supportive to equities over the past few sessions.
However, what is probably really important here is that equities are behaving strong during what is supposed the weakest seasonal period for stocks. Very telling …
The event risk remains the US November election but we still have over a month to get there.
Gold hit also a new all-time yesterday, but here we clearly have stopped counting the ATHs. There’s a chart in yesterday’s Quotedian on Gold you shouldn’t miss (second gold chart in the commodity section). Click here to go and check it out (and of course sign up to The Quotedian should you not yet have done so).
Noteworthy are also a decent rally in copper and especially a 7% rally yesterday in Natural Gas with follow-through this early Tuesday (more on the latter in the COTD section below).
Finally, we see a strong rally in Asian markets this morning, lead by a 4% advance in Chinese mainland stocks, after the PBOC announced a stimulus blitz (lower required bank reserves, key policy rate cut). It was also just yesterday that we wrote (click here) that a tradable rally may be at hand on Hong Kong and China stocks, though only for the not faint at heart and with a hard stop loss in place. Well, here we go!
As forementioned, Natural Gas rallied 7%-plus yesterday Monday and is showing follow-through this morning. This was enough to ‘provoke’ a crossover on the monthly MACD. As today’s Chart-of-the-Day shows, in the past when NG was trading at current levels (see upper chart) and the monthly MACD gave a positive crossover signal, an always more than tradable rally followed ensuite. Stay tuned …
