Premarket analysis: 24 July 2020
- Asian emerging market currencies are gaining
- Economic recovery hopes are still alive
- Hopes on vaccine
- Global equity indices are beginning to pull back
- Good news seems to have been priced in already
- Tension between China and US are boiling over
I have been posting premarket analysis for the past two months. Many of you may be familiar with technical analysis of charts but that only forms a part of the puzzle.
Another part of the puzzle is market narrative. Continuously flowing news/events changes and re-focuses the attention of market participants on certain issues. Right now I can sense certain events related to US China tension is refocusing the markets’ attention to political and trade war risks. Theses risks although were always present but had been in the back burner for some time. Understanding market narrative is as important as technical analysis if not more.
Change in market narrative is reflected in the price action of different markets such as global equity, bond, currency, metal and commodity markets. They are all inter connected. This is called intermarket analysis.
My postings offered a structured view of the market narrative and intermarket analysis. It definitely helped me to fine tune the structure of analysis and make it a habit. I hope it helped some others as well.
I will stop posting my morning pre market analysis here. If some one is interested, they can always visit my blog site https://www.niftyoptionideas.com/
Thanks & bye