Nicholas Merten recently shared his deep insights on the current state of the markets, collected here by the CoinSpeech team. In this recent appearance, Merten dives into the complexities of the trading world, offering a clear framework for understanding the dynamics at play. You can find Nicholas Merten’s new video below.
Analyzing the Market Dynamics
“First of all, I recommend starting as always with the Forex calendar,” Merten advises. This foundation helps traders stay updated with key economic indicators that shape market movements. One significant aspect he focuses on is the upcoming CPI print, scheduled for Thursday, July 11. This data, he warns, could have substantial effects on trader sentiment and market stability.
The Impact of Oil Prices
Merten is highly concerned about rising oil prices, noting, “Oil is ingrained into every cost side on majority of goods and services you are consuming.” The inflationary pressure from higher oil prices could hinder the Fed’s ability to cut rates further, affecting overall economic conditions. He suggests paying close attention to key oil price levels, particularly $84 and $87, as they signify crucial points for market liquidity and trader behavior.
Market Sentiment and Technical Indicators
- Economic Indicators: Merten stresses the importance of watching unemployment rates, as “stock inflation or galux” directly influence market sentiment.
- Technical Levels: “For me, it’s always the combination, the Confluence of midterm and the shortterm,” he explains, pointing out the significance of the 100-day moving average for the S&P 500 and NASDAQ’s responses to market news.
- Bond Market: Merten sees potential in bonds if rate cuts occur, commenting, “I still see that we are in an uptrend maybe this is like the beginning of the recovery for the bonds.”
Macro and Short-Term Outlooks
Merten outlines his bullish stance on both midterm and short-term market perspectives. “Shortterm as bullish midterm is bullish I am still expecting the bigger Market to stay in that bullish mode,” he states, combining technical analysis and economic forecasts to form a comprehensive view.
Investment Strategies
Focusing on various asset classes, Merten discusses opportunities in sectors such as uranium, oil services, and silver. “Uranium physical is actually going to be my very big bet,” he reveals, emphasizing the potential of these lesser-followed sectors in contrast to the heavily hyped tech stocks.
Psychological Factors in Trading
Highlighting the psychological aspects of trading, Merten asserts, “It’s very important to have precise entries not just because of money but just because of psychology.” Accurate market entries help traders maintain a stable mindset, essential for successful trading.
Merten’s comprehensive approach, combining macroeconomic analysis with technical indicators and trading psychology, provides valuable guidance for navigating the current market landscape.