folks, knowing what’s going on in the currency market is so crucial .. not only does it completely dwarf any other market out there in volume/volatility but it also play such a crucial roll in the flow of funds, affects on commodities, etc.
back in 2015 I posted “the most important chart of 2015″ and it was the Chinese Yuan: https://bartscharts.com/2015/12/09/most-important-chart-to-end-2014-revisited-in-december-2015/
I was aware that $AAPL did a bunch of manufacturing over there and, in the past, had shown the correlation of the price of Palladium to $AAPL stock. You can check that out here – https://bartscharts.com//?s=palladium
it’s take a little bit of time – imagine that – but as the entire world was wondering ….”hmmm, I wonder if the Chinese are done letting the Yuan gain strength against the USD” $AAPL was making it’s all time high and digesting this same thought .. (see dashed red rectangle below). The Chinese answered the question w/ a BIG EXPLOSIVE CANDLE … Answer: guess this move weakening the Yuan is real.
Now $AAPL. Note, when the “big move” came by the Chinese AAPL cracked and, since then, has been correlating nicely w/ the swings in the Yuan.
So, cliff notes, pay attention the Chinese Yuan and $APPL together …will this correlation break in the future? Probably but for now as the Yuan continues to weaken against the USD, $AAPL sure seems to be having a tough time …
Let me know if you have any questions … continue to make it a great weekend wherever you are….
we have taken a look at the FXI and it’s set of “lower highs” since 2011. we have also taken a look at it’s relationship to Copper and how they have ebbed and flowed w/ synergy. what we haven’t done is step back and analyze the BULLISH case for the FXI. YES, I am posting something that could be a major BUY set up. However, it still needs to fall a good 50% in nominal terms. from 37 to 22.
why the bullish case? go back to the low in 2009? From 19 to 48 we can count 5 wave UP. In the context of wave counting that is either a wave 1 or an A wave that will form a 5-3-5 correction. labeled a-b-c. either way, we have a nice BUY in/around the 22-25 area that, if the count is correct, take out 48 and perhaps even higher.
so, stay tuned. w/ MAJOR long term patterns occurring w/ in the US and Global Equity market certainly appears a good thump could be coming but what an amazing set up to BUY…
the count (long term) for copper appears to have completed a very well defined 5 wave move … if this is correct, then perhaps we have a little larger rally to kiss the neckline and then down into much lower prices. why is this important to China? well, from a chart view they are aligned extremely nicely. so, IF Copper is going to go down THEN so should FXI if the correlation holds …