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Kazu Williams
Staff Research Associate

XauUsd pattern?

Hive Mind, 

Potential macro potential.  I am still learning, so is this a cup and long term handle position?  

Happy Ignorance, 

-Kazu

XAUUSD Cup and Handle ... ?
XAUUSD Cup and Handle ... ?

Got liquidity? China does. Only, it doesn't know what to do about it.

Update 2020-02-24:

As part of their plan, a sudden and unexpected tax hits the HK HFT folks pretty hard it seems:

https://www.zerohedge.com/markets/hong-kong-market-tumbles-after-shock-transaction-tax-hike-pay-government-handouts

Analysts at Citigroup Inc. estimated that the increased stamp duty will raise trading costs by 6% to 15%, pressing down trading volumes and crimping the exchange’s earnings per share by 3% to 7%.

Separately, the government announced spending measures of more than HK$120 billion ($15.5 billion) to alleviate economic hardship for city residents struggling after a two-year economic recession.

Perhaps a calculated way to take the air out of their own markets and start pushing capital out into the world to colonize assets abroad? I don't know. But China doesn't do things by accident, so I have a hard time believing this isn't part of the master plan, whatever that is.

It also could just be to do what it says on the tin: raise tax revenue in a market that is attracting a lot of inflows. Maybe a way to redirect flows to the people as a sort of consolation prize for taking away their personal freedoms?

They are delaying the tax till August 1st, so all of those easy Q2 comparables will still be available to play under the current tax structure.

According to local media including Apple Daily and NowTV, the trading tax hike will be launched on Aug. 1 and the government expects it to generate an extra HK$12 billion a year. In the 2019/2020 fiscal year, the duty contributed HK$33.2 billion in revenue.... (More)