Bitcoin cash price is recovering from the $225 support zone. BCH is slowly gaining traction, but it is facing a strong resistance near the $240 and $242 levels. Brokerages make money by allowing companies called ‘market makers’ to act as middlemen between parties that want to buy and those that want to sell. It’s not… The Dow Jones futures flat, coronavirus stock market rally pauses. Coronavirus spike and Anthony Fauci warns. Beijing may have problem with US stance on US-China trade deal. “TrumpKillsUS” another major hashtag. Trump shows no sympathy for protesters and doesn’t mention George Floyd in Arizona “If you want a short-term trade with a terrific track record, Williams says you should buy the S&P two days before July 4,” the “Mad Money” host said.
Bitcoin cash price is recovering from the $225 support zone against the US Dollar. BCH is slowly gaining traction, but it is facing a strong resistance near the $240 and $242 levels.
- Bitcoin cash price is slowly correcting higher above $235 against the US Dollar.
- The price is likely to face a crucial hurdle near the $240 resistance zone.
- There is a key bearish trend line forming with resistance near $242 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).
- The pair must clear the $242 resistance zone to start a decent recovery wave in the near term.
In the past few days, bitcoin cash price consolidated in a range above the $224 and $225 support levels. A swing low was formed near $224 before the price started a fresh increase.
There was a break above the $230 resistance zone. The bulls were able to push the price above the 23.6% Fib retracement level of the downward move from the $260 swing high to $224 low.
However, bitcoin cash price is currently facing a crucial hurdle near the $240 resistance zone. There is also a key bearish trend line forming with resistance near $242 on the 4-hours chart of the BCH/USD pair.
The trend line coincides with the 50% Fib retracement level of the downward move from the $260 swing high to $224 low. The 100 simple moving average (4-hours) is also close to the trend line resistance and $240 to prevent an upside break.
Bitcoin cash price testing $240: Source: TradingView.com
If the bulls succeed in clearing the $242 resistance, the price is likely to accelerate higher. An immediate resistance is near the $246 level, followed by $250. A successful close above the $250 level will most likely open the doors for a larger upward move in the coming sessions.
If bitcoin cash price fails to break the trend line resistance, $240, and the 100 simple moving average (4-hours), there is a risk of a fresh decline.
An initial support is near the $235 level, followed by $230. The main support is now forming near the $225 level, below which the bears are likely to aim $205 or $200.
Hourly MACD – The MACD for BCH/USD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well above the 50 level, with bullish signs.
Key Support Levels – $230 and $225.
Key Resistance Levels – $242 and $250.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.
Author: Aayush Jindal
Is Robinhood making money off those day-trading millennials? Well, yes. That’s kind of the point.
As the twin black swans of the coronavirus pandemic and the historic oil price collapse rocked financial markets early in 2020, opportunities emerged.
So did media narratives.
One of the most popular: that bored young people, stuck at home with no access to sports or bars or live entertainment, went day-trading instead, in many cases with an online brokerage that seems tailor-made for the Gen-Y set: Robinhood.
While there’s plenty of evidence that handfuls of millennials are day-trading, and in some cases losing a lot of money, with sad and shocking outcomes, their numbers and any impact they may be having on the market is less certain.
What’s more, for anyone who’s spent a career observing and helping fine-tune the infrastructure behind financial market trading, some of the discussion about what’s actually going on isn’t informed, or helpful, according to one analyst.
“There is a narrative out there that somehow Robinhood was doing something nefarious to make money off their clients in a way that was illegal or unethical or outside the norm,” said Dave Nadig, a veteran of exchange-traded funds, an industry that depends on — and has arguably helped bring to maturity — the financial system’s pipes and plumbing. “Actually, it’s a tempest in a teapot.”
Related:Retail investors are getting ‘hosed’ with the biggest oil ETF down more than 30% this week
The chatter about how Robinhood and other brokerages make money reveals a deep misunderstanding about how trading actually happens, Nadig told MarketWatch. Nadig blogged about order flow, in his capacity as chief investment officer and director of research at ETF Database, but also shared some thoughts in an attempt to set the record straight, and hopefully help the average investor understand what’s going on when he or she makes a trade.
Read:Here’s the right way to trade ETFs
Most investors think that when they try to sell a stock or an ETF, the brokerage platform they use will find another interested investor to buy it — and vice versa.
In fact, all brokerages work with companies called market makers, whose job it is to liaise between everyone who wants trades to happen: the buyer, the seller, and both parties’ brokers.
The term “market maker” and the various metaphors often used to describe them make their role sound very personal, almost bespoke, Nadig thinks. In reality, such firms operate massive algorithm-based programs that allow them to see huge swathes of financial markets at once: who wants to buy, and at what price, who wants to sell and the price they want to get, and, crucially, whether the market maker can make a few basis points on the difference.
“What we’re talking about is an extraordinarily thin margin business,” Nadig said. “It happens millions of times per second.”
It’s so high-volume, in fact, that market makers pay brokerages for the ability to be the middleman in the transactions. That’s known as “order flow,” and it’s the process that’s caught the attention of social media.
“If you’re trading on Robinhood, just know your order flow data is sold to hedge funds so they can front run you,” one anonymous Twitter user wrote.
Nadig thinks that’s misguided. Market makers should benefit a broker’s customers not just by facilitating the trade, but also by allowing them to realize better prices. Just as market makers use huge computer programs to figure out which trades to take, brokerages have their own, rules-based, programs, that route trades so they can happen most efficiently.
Unfortunately, it’s impossible to fact-check any brokerage’s claims of what the industry calls “price improvements,” Nadig notes. It’s worth pointing out that Robinhood was fined $1.25 million in 2019 to settle a complaint from a regulator that it did not ensure its customers received the best price for trades. That’s even more incentive for the company to play by the rules now, Nadig thinks.
There is some transparency into order flow, however: the Securities and Exchange Commission requires that broker-dealers file a quarterly “routing report.” Robinhood’s most recent one is here.
Robinhood media relations department did not respond to specific MarketWatch requests for comment for this story, but referred readers to an online article about how it routes orders. Of the 2019 fine, a spokesperson said, by email, “The facts on which the settlement is based do not reflect our practices or procedures today. The agreement relates to an historic issue during the 2016-2017 timeframe involving consideration of alternative markets for order routing, internal written procedures, and the need for additional review of certain order types. Over the last two years, we have significantly improved our execution monitoring tools and processes relating to best execution, and we have established relationships with additional market makers.”
Perhaps more important than the specific logistics about order flow, Nadig thinks, is the underlying reality: millions of people trade with brokerages like Robinhood (and Schwab, Interactive Brokers, TD Ameritrade, and many more), for free.
Brokerages have other sources of income, of course — margin lending, advisory arms, and so on. But most of all, “Every broker is in the business of getting transactions moving through the system. They just want volume,” Nadig said. Any lubrication that helps that movement is important, he said. Ultimately, “Robinhood is not there to teach you financial literacy or how to pay down your student loan. It is very good at getting you to make transactions. It’s Tinder but for money.”
Related:Are ETFs safe… for retail investors?
Author: Andrea Riquier
Dow Jones Futures: Stock Market Rally Focuses On Covid-19 Wave, “TrumpKillsUS” Rises On Twitter Trends
The Dow Jones futures are trading lower as traders continue to weigh their appetite for riskier assets. Yes, we are moving higher in terms of US equity markets. Still, the reality is that this is one of the most hated rallies on Wall Street among professional traders who believe that there is a significant disconnect between the actual economy and the stock market rally. Also, most of the strength that we see in both the US economy and around the globe arguably comes from fiscal and monetary policies.
The S&P 500 futures, along with Dow Jones futures are likely to remain sensitive to coronavirus second wave, US-China trade-related news, and economic data. Steven Mnuchin, the US Treasury secretary, believes that the US may be out of its recession by the end of this year. In my opinion, this is only possible if the US can control the spread of coronavirus. Munchin expects China to honour the trade deal but also believes “decoupling” remains a possibility. Again, it is China that the Trump administration is addressing. Beijing is unlikely to respond well to any threatening behaviour. Controlling the coronavirus spread is one element, and arresting the US economy from falling into another trade war that the US cannot afford is a whole different world.
The DJIA and S&P 500’s market breadth shows there are over 33% and 41% per cent stocks that are trading over 200-day smooth moving average respectively.
The global stock market’s strength doesn’t look very solid today, as Asian markets closed the trading day very mixed. Additionally, momentum doesn’t seem to be very strong over in the European markets, even though we had some strong economic reading over in the Eurozone yesterday.
Here is more on these topics:
NEW YORK, NEW YORK – MARCH 20: Traders, some in medical masks, work on the floor of the New York … [+] Stock Exchange (NYSE) on March 20, 2020 in New York City. Trading on the floor will temporarily become fully electronic starting on Monday to protect employees from spreading the coronavirus. The Dow fell over 500 points on Friday as investors continue to show concerns over COVID-19. (Photo by Spencer Platt/Getty Images)
The Dow Jones futures are trading trading lower by 115 points, the DJIA index’ is set to face many whipsaws today. The Dow Jones futures have traded between gains and losses during the early morning price action, and this shows bulls may not be able to hold the momentum today.
The Dow Jones’s daily chart shows that the Dow has failed to close above the 200-day moving average. We see another failed test of the 200-day moving average, and this confirms that there is enough selling pressure for the DJIA index. But hopes are alive because the Dow Jones Industrial average is still trading above the 50 and 100-day moving averages.
The DJIA index’s weekly chart shows that we are still within the trading range of last week. The focus is on the 50 and 100-week smooth moving averages, and if the Dow stocks can push the index above these averages.
DJIA chart. Dow Jones futures show weakness as the price has dropped below its 50 and 100-week … [+] smooth moving average. The Dow could drop and so the stock market rally.
The S&P 500 index shows a better representation of the overall stock market, and it confirms that there is a tug war between bulls and bears. In simple words, there is no clear direction, and hence we see more consolidation for the S&P 500 stock index.
The US stock market rally had another positive day yesterday, and the major indices closed with modest gains. The S&P 500 stocks failed to hold on to most of their gains because traders booked profits due to surge in coronavirus cases in several hotspots. However, there are still hopes that trillions of dollar support in terms of fiscal and monetary policy support should continue to spur the stock market rally not only in the US, but also around the globe. The reality is that it is difficult to measure the actual recovery in terms of economic sentiment and data when large parts of the economy are on emergency measures such as furlough schemes in the UK and stimulus checks in the US.
For instance, the unemployment rate over in the UK has been kept artificially low due to the furlough scheme, and the moment the government starts withdrawing its support, the consequences will begin to appear. The current unemployment rate could jump far above 20%.
Similarly, over in the US, we have seen massive support from the fiscal policy front, and the Treasury Secretary, Steven Mnuchin is talking about another stimulus package to help Americans. We may likely see the stimulus package coming into the light in July, which is next month. According to his own words, “it is something we are very seriously considering”.
The S&P 500 is trading at a price to earnings ratio of 22 on a trailing basis, and the dividend yield is 1.93% on a trailing 12-month basis.
The recent spike in coronavirus is due to the Covid-19 spreading in the US not because of the testing result, Anthony Fauci, the US government’s top infectious disease expert, said yesterday. He told White House that the next few weeks are critical to bringing down the resurgence of coronavirus. California and Texas have seen another record daily jump in their coronavirus cases, and infection rate in Florida has also soared above the critical 10%. States are going to continue to fight this virus, and it seems like they are trying their best not to close their economies. States are fighting an uphill battle, which is not easy to win as it was evident from the governor of Texas’s comments who recently said that he is not in favour of imposing a lockdown. According to Anthony Fauci, the country is pinning its hopes on a coronavirus vaccine, and there won’t be one until early next year.
The EU will be easing off its travel restrictions from next month, and lists are being prepared for countries from which travelers will be allowed. Given the fact that the US hasn’t controlled the virus very well—one of the criteria for the entry list—there are concerns that the US may be on the wrong list. If this turns out to be a reality, EU officials will probably face a backlash from President Trump. The final decision is likely to be out by early next week, and this could become spur geopolitical tensions between the US and the EU.
Trump made no mention of the killing of George Floyd, a Black man killed in police custody, in his speech in Arizona. Trump even went one step further and united himself with law enforcement, failing to show any sympathy for Americans who are protesting against police brutality.
“TrumpKillsUS” is another major trend on Twitter with over 72.3K tweets. Currently, it is in fifth place with a team of people trying to push this to the top spot. Ahead of the elections, which may appear far away for now, trends like these could create more obstacles for President Trump and the stock market.
Author: Naeem Aslam
Jim Cramer says playing Larry Williams’ Fourth of July trade ‘makes a lot of sense’
CNBC’s Jim Cramer on Tuesday made a case for retail investors to make a short-term bet and profit on the ongoing upside in the stock market.
The recommendation goes against the long-term investment strategy that Cramer preaches nightly on “Mad Money,” however the show host sees an opportunity for new stock traders to be successful in the near term.
“Most of you shouldn’t trade, you should only invest for the long-term, but if you’re gonna trade anyway,” he advised, “I think this Fourth of July trade from Larry Williams makes a lot of sense, as long as you’re disciplined about it.”
Taking a look at the S&P 500 E-mini, the electronic futures contract representing a portion of the S&P 500 futures contract Futures, Cramer pointed out that the S&P 500 tends to ride a seasonal rally from late June through early July. For traders looking to time the wave, he suggests trades are made with a clear entry point and a definite exit point.
Based on Williams’ conclusions, Cramer said that buying the benchmark index in the handful of days leading into July 4 tend to yield positive results. Over the past two decades roughly, buying the S&P 500 two days out yielded returns 95% of the time; three days out 85%; four days out 80%; five days out 66%; and six days out 57%, he said.
“If you want a short-term trade with a terrific track record, Williams says you should buy the S&P two days before July 4,” Cramer said. “Just remember to use a stop-loss order” as “Williams likes to let this run for two days and then sell into the first profitable opening.”
Cramer made the case after perusing chart analysis from Williams, whose storied trading career spans more than five decades. In April, Williams foresaw that the U.S. economy would reopen in May and the market would bounce back in what Cramer then called one of the “boldest contrarian calls” amid the coronavirus pandemic.
From a financial perspective, “he absolutely nailed it,” the host said Tuesday. “Now Williams has another idea, and it’s a short-term fourth of July trade.”
“We don’t normally traffic in this stuff” because “I don’t want people to think it’s a trading show,” Cramer said. “But trading is making a comeback and I’ve got to be sure that you’re going to be rational and disciplined if you’re going to do it.”
Author: Tyler Clifford