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Daily Analysis: US Stocks Hit New Highs as Europe and Credit Rebounds

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Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2596 0.65%
DAX 13167 0.83%
WTI Crude Oil 57.09 0.44%
GOLD 1282.00 0.41%
Bitcoin 8067 -2.19%
EUR/USD 1.1742 -0.10%

The brief correction in US equities is a thing of the past now as the major indices are back at their all-time highs, even as the majority of the stocks are still not following the trend in the most valuable names. Only about 60% of the individual stocks are trading above the 200-Day moving average, which is one of the lowest participation ever at a record high. That said, until the technical trend is intact, shorting a bull market is a frustrating and costly hobby, but reducing exposure on the way up is still advised.

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NASDAQ 100 Futures at All-Time High, 4-Hour Chart Analysis

High yield bonds, which caused a slight scare last week, are also up so far on this Thanksgiving week, and as trading will likely collapse towards the end of the week, volatility will probably follow in suit. While the flattening of the yield-curve continues unabated, hitting levels not seen in a decade, the Dollar is relatively quiet and all in all risk-on sentiment is stable. European stocks are higher as well, although they are well of their previous highs, while Asia also showed strength after last week’s more volatile days.

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DAX Index, 4-Hour Chart Analysis

Currencies were little changed amid the declining volumes, with the Greenback losing some ground while the Pound holding on to its recent rebound, as hectic trading continued in the currency. The Yen’s strength is still apparent despite the global stock rally, as the Middle East situation is still fragile, and credit markets are also signaling some defensive shift despite the current rebound, helping the safe-haven currency together with gold.

USD/JPY Sliding Lower, 4-Hour Chart Analysis

Cryptocurrencies

Bullish price action continues to dominate the segment, despite today’s brief sell-off, as Bitcoin is still trading near $8000, while altcoins are getting close to their record highs one by one. Today, Dash hit a marginal new high above $500, while Monero and Ethereum got slightly closer to their respective record price levels thanks to the rebound in the second half of the session. NEO suffered the steepest losses during the pull-back, and it failed to recover together with the rest of the market, while Ripple and Ethereum Classic were also relatively weak, and IOTA is trading well below yesterday’s highs as well.

DASH/USD, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
2:30 AUSTRALIA RBA Meeting Minutes
14:30 CANADA Wholesale Sales -1.2% 0.6% 0.4%
17:00 US Existing Home Sales 5.48 mill 5.42 mill 5.37 mill

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
15:30 US Core Durable Goods 0.4% 0.7%
15:30 US Unemployment Claims 241,000 249,000
17:30 US Crude Oil Inventories 1.9 mill
21:00 US FOMC Meeting Minutes

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Disclaimer:  The analyst owns stocks, corporate bonds, gold, and cryptocurrencies. 

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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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