, 16 tweets, 14 min read
My Authors
Read all threads
Good morning! 😁Deflationary phase is developing in economy. Stay tuned for my perspectives on coming developments in markets based on charts - technical and fundamental analysis #HZupdates thread coming up!
SP500 recovered some of the loses from early trading this week. Still, I think we have seen the top of the Expanding Diagonal, and we are currently in the Deflationary part of the crisis, where growth in economy is rolling over. Target ~2050 by Q1/Q2 2020 #HZupdates
#SP500 - will we see rally to 2950 for pot. top of wave 2 (black) before reversal and strong decline? That would close the gap in market from early Aug. #HZupdates
#Copper seems to be on the verge of embarking on the next leg down. Broke trendline - and has consolidated just below. A strong drop in Copper is deflationary and aligns with strong drop in #SP500 as real economy deteriorates. LT Target (A or B) is below 2008-bottom #HZupdates
Zooming in on the "Break" on #Copper chart, gives us a clear view of the consolidation below trendline. This is pot. very ominous for what is about to happen in real economy and in stock market - coming weeks, months and years! Deflation - before stagflation #HZupdates
#AUDUSD sends same message. Breaking below important area ~0.69-0.70 in LT-chart signals much lower levels to come. LT-target remains ~0.49. Again, this speaks of #deflationary environment for coming months, where #commodities and #equities will perform badly #HZupdates
Zooming in on #AUDUSD, we observe consolidation - below 0.69-0.70-area. This is NOT a bottoming pattern - but a short pause before pot. powerful break lower. #Deflation #HZupdates
#CRB sending same message. Consolidating below trendline of triangle before push lower in major Ending Diagonal. Deflationary! Much lower levels to come before final LT-bottom #HZupdates
#Oil sends same message. Consolidation in triangle before next thrust down. Deflationary! Target <20USD before LT-bottom #HZupdates
So economy enters deflationary bust, which will develop for months to come. Fed will finally engage at full force, which will put in SECULAR-bottom for commodities (Q1/Q2 2020). This will create bounce in economy and markets only to push economy into #stagflation #HZupdates
The #DEFLATIONARY part of the crisis will not be kind to #Gold as it delivers to its promise of providing LIQUIDITY. Top of B may be here or ~1600 but rally since 2015 is a correctional move. Wave C will take us to LT-bottom in 890-990-area before #STAGFLATION sets in #HZupdates
Crisis epi-center is likely to be #Europe which is a mess. #DAX looks terrible (notice decade-long divergence) and a major decline is likely to unfold. The target area speaks of major political, societal and economic crisis! The severity cannot be emphasized enough!! #HZupdates
#ECB will throw everything on the #Deflationary fire, which will crash #EURUSD. Notice LT-trendline (black) from 2008-bottom. This has just been broken. We may see ST-bounce - but EURUSD is heading towards min. 0.91 #HZupdates
As the #Deflationary part of the crisis unfolds, #DXY #USD will be only place to hide. DXY is likely to rally >111 before Fed is forced to step in and deliberately weaken strong #Greenback. This will mark the secular bottom in #commodities and send economy into #Stagflation
That is all for this week's #HZupdates. Please note consistency in the forecast on deflation to come from >1 yr ago. Only miss has been with #gold which is correcting in ZigZag-pattern and not in my earlier predicted Triangle😐Well, we all make mistakes! Stay safe! KR. from Cph😁
@threadreaderapp Please unroll
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Henrik Zeberg

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!