The market is at the mercy of the news and here’s the top tip

2023-05-10 13:55:00

“The news may lead the market towards what the market maker wants.”

Tom Williams in his book The Art of Trading the Markets

The market maker may have an impact on the markets, and this is undoubted, especially since the rules of technical analysis dictate to us with its basic rules that the impact of the market maker on the news is not less than 40%, and this percentage is sufficient at least to get you out of the market, but how does this effect come on the news and how do we act Correctly, this is what we will tell you in today’s article and on this week’s news

news and its impact

First of all, you should know that we distinguish these types of news (News).

1. The issuance of a number on an economic indicator, such as the issuance of unemployment levels or inflation rates. Here, the market maker cannot affect the markets. Rather, the effect comes from the number itself, i.e. a purely economic impact on the markets, at a rate of up to 90%. The rule is that the market is directly affected. Then he absorbs the news and acts according to what the rules dictate to him, and all indicators have a rule

2. A press release for an institution of important importance, and here we distinguish two types. Either that institution may be governmental, then its impact on the markets will be biased, as Graham classifies it, and its impact will continue on the market for a maximum period of one month, so that the market follows its behavioral nature resulting from supply and demand, such as when someone concerned with the Fed talks about plans Which will follow, and the market will be affected for a certain period, then it will return to what it was before. As for the second type, here the market maker can influence it, which is to affect the markets, through famous analysts and journalists with a great impact, and this is done by extracting results from the news, i.e., for example, the Federal Reserve announced the news A certain analyst has to interpret this news as the market maker wants, not as it is, and here you need experience with a scientific basis to realize what the expected impact is.

and inflation

In our last article entitled (Gold and the Big Lie), we explained the technical path that gold will follow if certain conditions are met. According to the same conditions mentioned in the article, we add the following:

Gold is awaiting index numbers (), which express inflation, which will result in our agreement with technical analysis:

1. If inflation levels rise and gold closes above 2020, we will see more rise

2. If inflation levels decline, we will see a slight correction for gold towards 2000

Gold is also awaiting the unemployment news that will be released on Thursday, which will have a negative impact on gold

rule and advice

The rules linking gold and inflation are:

1. Gold has a direct relationship with inflation in the event that the market did not wait for the interest rate to be determined

2. Gold has an inverse relationship with inflation if the market is waiting for the interest rate to be determined

In our case, the interest rate was set several days ago, so the effect is direct…

Rules that associate gold with:

Gold is directly related to unemployment, so gold is very sensitive to unemployment levels

My advice to you remains to read the previous article and specify the conditions that achieve any of the aforementioned scenarios and do not exaggerate expectations and do not rely on the news, but rather on the basis of the news, no matter how gold shows you that it does not respect the rule, gold takes at least four hours before the start of determining the rule, and this is because volume is not clear after

Oil is awaiting the US Crude Oil Inventories Index, which is expected to decline, which reflects an inverse relationship with it, especially since the matter is in agreement with technical analysis.

That is, the decline in the US stockpile and the price closing above 75 means that crude oil will go towards at least 80…

And the anxiety that surrounds the markets

The fact that the Dow index is an indicator that reflects the safety of the US markets, and in light of this concern, we may use the stock and concern rule, which states:

“In light of the government’s desire to raise the rate of interest at a frequent pace, and in light of financial anxiety resulting from bankruptcy, stocks will not achieve real growth, but rather growth resulting from inflation, and this reflects violent fluctuations in the indicators before it escapes by determining its fate.”

From the book Benjamin and Secrets of Analysis

Therefore, in terms of fundamental analysis, the Dow markets are on the verge of a period of volatility, but technically it is facing one of the following scenarios:

1. Either it closes higher, or it closes above 33900 for four days, so we can confirm the rise towards 34500

2. Contrary to the previous scenario (which is more consistent with the norm), the price will remain fluctuating between 33300 and 33900 levels.

Bottom line and opinion of the technical analyst

In conclusion, dear reader, remember, especially during the issuance of any news, that the markets do not involve risks by their nature, but rather they do involve risks due to the ignorance of those working in them, nothing more…. All the love

Analyst: Omar Sayyah

Feel free to ask any questions, or contact us if needed, we take a lot of time to hear from you.

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Twitter: @SyyahOmar

#market #mercy #news #heres #top #tip

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