MH+ Ep. 20: Patrick and Chase Take A Deep Dive in To The Markets
Nov 21, 2023
auto_awesome
In this podcast, the hosts discuss various topics including the recent stock market rip, favorite commodity trades, and predicting future market growth. They analyze the performance of market indices, speculate on the future, and analyze the movements in the dollar yen pair. They also talk about buying stocks based on technical analysis and fundamental reasons. Additionally, they discuss the performance and potential of uranium in the market, as well as commodities like cocoa, axe, sugar, soybeans, and orange juice futures.
The stock market rally is expected to continue melting higher with a slower and lower volatility move for the rest of the year, while the Russell index may underperform due to short-term rates and its economic sensitivity.
The weakness of the US dollar, particularly in relation to the USD/Yen currency pair, suggests that the USD/Yen top is likely in and the yen could continue moving higher given potential rate cuts by Japan's competitors.
Deep dives
Stock Market Rip and Melting Up
The podcast episode discusses the recent stock market rally, highlighting the sudden shift from bearish sentiment to a strong market rip. The speaker suggests that the market is likely to continue melting higher, with the rest of the year expected to be a slower and lower volatility move. They mention that the Russell index has underperformed and may continue to do so due to short-term rates and its economic sensitivity. The S&P 500 is discussed as possibly reaching the 2021 highs or possibly experiencing a slow crawl of another 100-150 points.
Dollar Weakness and USD/Yen
The podcast episode explores the weakness of the US dollar, particularly in relation to the USD/Yen currency pair. The speaker suggests that while the US dollar may not reach a secular top, the USD/Yen top is likely in. They discuss the monetary policy differential between the US and Japan and predict that the yen could continue moving higher, especially given potential rate cuts by Japan's competitors. The speaker concludes that they are bullish on the yen.
Rise of Bitcoin and the Gold Market
The podcast episode covers the rise of Bitcoin and the gold market. The speaker expresses optimism about Bitcoin, citing the potential for ETF buying and the sticky hands of Bitcoin holders. They acknowledge the risk of a pullback after a steep upward trend but highlight the importance of staying above the $31,600 support level. Regarding gold, the speaker discusses the recent breakout and the potential for a big move if the price surpasses the $2,060 resistance level. They also touch on central bank policies and the impact on precious metals, expressing a belief that central banks are done with rate hikes and that easing cycles could benefit the gold market.
On this weeks Huddle +, Pat welcomes back one of our favourite chartist’s, Pinecone Macro’s, Chase Taylor. They take a deep dive in to all things Commodities including Gold, Uranium, Sugar, Orange Juice and other usual suspects…