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As the Israeli army prepares for a full-scale invasion of Gaza, they are relying on the D9R armored bulldozer, affectionately known as Doobi,’ or ‘Teddy Bear.’

The nickname comes from the Hebrew acronym for armored mechanical engineering equipment (TZMEDA), which sounds like ‘doobi.’ The D9R is also known as ‘דובי’ in Hebrew, which means ‘teddy bear.’ 

This nickname reflects the affection and respect that the IDF (Israel Defense Forces) have for this powerful and reliable machine, which often saves their lives in combat situations.

A powerful and protective bulldozer for military operations

This robust vehicle is essential for navigating the narrow streets, extensive tunnel networks, booby traps, and sniper positions in the urban environment.

It is also capable of detonating mines and improvised explosive devices, as well as demolishing obstacles in its path. With its ability to withstand guns and explosives, the D9R ensures the safe advancement of infantry.

A massive and resilient machine for combat zones

The D9R is designed and manufactured by Caterpillar. It is equipped with specialized features such as added armor and a reinforced blade, which enable it to perform various engineering and combat operations. With the blade, it measures 27.03 feet long and 15.3 feet wide and weighs 62 tons.

A versatile and enhanced bulldozer with multiple attachments and upgrades

The IDF Caterpillar D9 is a modified version of the D9R bulldozer, designed and manufactured by Caterpillar. It is equipped with various attachments, such as a mounted machine gun, grenade launcher, or smoke projector, enhancing its combat capabilities.

Upgrades like ‘slat armor’ were added in 2015 to provide increased protection against rocket-propelled grenades and other threats. The IDF Caterpillar D9 can handle a variety of tasks, including digging trenches, building bridges and constructing defensive structures.

Additionally, a remotely operated version called the D9R Panda was introduced in 2018 for more hostile environments.

While the exact cost of an IDF Caterpillar D9 is uncertain, a new Cat D9 bulldozer without additional upgrades is priced at around $1 million.

As Israel moves on its assault on Gaza, the D9R, with its reinforced blade and slat armor, will serve as a nearly impervious force against bullets and explosives. It will surely play a vital role in breaching defensive lines, including mines and tunnels, as well as combating Hamas’ resistance.

Kurt’s key takeaways

The D9R is not only a machine but also a symbol of Israel’s military might and determination. As the conflict in Gaza escalates, the D9R will continue to be at the forefront of Israel’s offensive ground strategy.

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Some moderate Republicans are in talks to come up with a bipartisan solution as the battle over who will be the next House speaker drags on.

‘There are informal conversations that have been underway. When we get back to Washington tomorrow, it’s important to begin to formalize those discussions,’ House Minority Leader Hakeem Jeffries said during an appearance on NBC’s ‘Meet the Press’ on Sunday.

The comments come as House Republicans have been locked in a chaotic battle for the last two weeks over the fate of the speakership, with former House Speaker Kevin McCarthy being ejected from the post this month.

Rep. Jim Jordan, R-Ohio, was nominated by a majority of Republicans on Friday but faces an uphill battle in gaining enough support among his GOP colleagues in a floor vote in which all Democrats are expected to oppose him.

The uncertainty has seemingly opened the door for a bipartisan deal, with Jeffries saying the goal of a deal would be to prevent ‘extremists’ from being able to dictate the agenda in the House.

‘The current rules of the House have facilitated a handful of Republicans being able to determine what gets voted on in the House of Representatives, and that undermines the interests of the American people. We can change the rules to facilitate bipartisanship, and that should be the starting point of our conversation,’ Jeffries said.

But such an effort is likely to face major pushback from Republicans if a Democrat were the choice, with even moderates arguing that a vote for a Democrat would be akin to ‘political suicide.’

‘No Republican is going to vote for a Democrat,’ Rep. Bob Good, R-Va., said last week during an interview with Fox Business ‘That would be political suicide, even for the most moderate of members.’

Meanwhile, Rep. Thomas Massie, R-Ky., noted that Democrats already own control of both the Senate and the White House, arguing that Republicans should not give ground when it comes to their control of the House.

‘Some Republicans want to cut a deal with Democrat leader Hakeem Jeffries to elect a Speaker,’ Massie said Sunday in a post on X, formerly Twitter. ‘With Democrats controlling the White House and the Senate, we must not give up control of the House. Republicans should unite behind Jim Jordan as our Speaker of the House!’

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Israel’s foreign minister, Eli Cohen spewed staunch words toward the Vatican for not issuing a ‘clear and unequivocal’ condemnation of the ‘murderous terrorist actions’ of Hamas terrorists who poured into Israel last week and killed more than 1,300 Israelis in a surprise attack, according to reports.

The Times of Israel reported that Cohen told the Holy See’s Secretary for Relations with States Paul Gallagher that the people of Israel ‘expects the Vatican to come out with a clear and unequivocal condemnation of the murderous terrorist actions.’

‘It is unacceptable that you put out a statement expressing worry primarily for Gazan civilians while Israel is burying 1,300 who were murdered,’ Cohen said, according to the Foreign Ministry.

On Oct. 7, Hamas-led forces crossed the Israel-Gaza border while residents were sleeping, dragging people into the street, taking some hostage while beading and killing others.

Over 1,300 Israelis were killed in the attack, with thousands more wounded and many taken hostage by Hamas, and raped, tortured and murdered.

Since the attack, officials with the Catholic Church have issued a range of reactions.

‘I follow with apprehension and sorrow what is happening in Israel,’ Pope Francis said the day after the attack. ‘I express my solidarity with the relatives of the victims, and I pray for all those who are experiencing hours of terror and anguish.’

The Latin Patriarchate in Jerusalem issued a statement while fighting continued last Saturday.

‘The operation launched from Gaza and the reaction of the Israeli Army are bringing us back to the worst period in our recent history,’ the Latin Patriarchate said. ‘The too many casualties and tragedies, which both Palestinians and Israeli families have to deal with, will create more hatred and division, and will destroy more and more any perspective of stability.’

Just before the fighting began, Gallagher was reportedly planning on visiting Israel, which would have been the first bilateral visit by a Vatican foreign minister.

Last Wednesday, Pope Francis affirmed Israel’s right to defend itself, but questioned whether it would lead to sustainable peace.

‘I continue to follow what is happening in Israel and Palestine with tears and apprehension: many people killed, others injured,’ the pope said. ‘I pray for those families who have seen a feast day transformed into a day of mourning, and I ask that the hostages be released immediately.’

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FIRST ON FOX – Republican presidential candidate Vivek Ramaswamy hauled in $7.4 million during the third quarter of 2023, according to the Ramaswamy campaign.

The funding includes an in-kind $1 million contribution the biotech multimillionaire made to his campaign in the third quarter. He also has $4.2 cash-on-hand. 

Ramaswamy now has more than 130,000 unique donors, nearly doubling the 70,000 requirement for entry into the third debate.

According to his campaign, Ramaswamy in the third quarter received over 143,000 individual donations from over 78,000 unique donors averaging a $38 contribution in the past three months. He saw a 198% increase in gross raised over the past three months and a 121% increase in the number of donations compared to the second quarter. 

Among the donors, his campaign touts that nearly 40% of them are first-time Republican donors while pointing to low single-digit averages for other candidates. 

The fundraising period included the first two Republican debates, where Ramaswamy made his first impression on millions of voters and was a major target by his GOP rivals on the debate stage.

Ramaswamy’s numbers come as Florida Gov. Ron DeSantis’s campaign touted a $15 million raised in the third quarter while former U.N. Ambassador Nikki Haley’s campaign says it brought in $11 million. However, their numbers pale in comparison to the $45.5 million former President Trump’s campaign raised during the same period.

All four of the candidates have already met the RNC’s polling and donor requirements for third primary debate set for Nov. 8 in Miami. Ramaswamy’s campaign told FOX News Digital he has exceeded 130,000 total unique donors, nearly double the 70,000 donor requirement. 

Ramaswamy has put a spotlight on border security in recent days following the horrific attacks against Israel by the terrorist group Hamas. The political outsider recently visited both Eagle Pass, Texas and the New Hampshire-Canadian border to call out vulnerabilities.

He also teased a potential debate with Rep. Ro Khanna, D-Calif., following the announcement of DeSantis’ Nov. 30 showdown with Democratic California Gov. Gavin Newsom, to be moderated by FOX News’ Sean Hannity. 

The latest FOX News poll released last week showed Ramaswamy with 7% support among GOP voters, placing him fourth behind Haley at 10%, DeSantis at 13% and Trump, who maintains a commanding lead at 59%.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

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Secretary of State Antony Blinken on Sunday claimed Hamas has disrupted the departure of foreign nationals from the Gaza Strip, adding that Egypt is prepared to help with getting people out and aid into the area.

Blinken was interviewed by Randa Abul Azm of Al-Arabiya on Sunday, who asked the secretary about efforts to get civilians out of harm’s way in Gaza, as Israel stages a ground offensive.

Azm prefaced a question to Blinken about getting humanitarian aid into Gaza and evacuating foreign nationals by saying, ‘The efforts to evacuate foreign nationals from Gaza Strip has been blocked by Israelis.’

Blinken had a different take on the matter.

‘Israel is not blocking the departure of foreign nationals,’ he said. ‘The problem has been Hamas has disrupted that, and of course, we have to make the necessary arrangements.’

He went on to say Egypt authorities are ready to help with the departure of citizens and foreign nationals.

‘At the same time, Egypt is fully prepared – and we’re working with them – to get assistance in,’ Blinken said. ‘And we’re putting in place a system – working with the United Nations, working with Egypt, working with other countries – to make sure that the assistance can get into Gaza, get to the people who need it.’

The secretary accused Hamas of putting civilians in harm’s way, knowing its actions would bring ‘a strong reaction,’ but went ahead with its attack anyway.

‘And the fact of the matter is this: What does Hamas do? Hamas makes sure that all of its critical leaders, that its command centers, that its weapons, its ammunitions are all located in residential areas, in residential buildings or buried underneath hospitals, schools, and supermarkets,’ Blinken said. ‘They know – they are using Palestinians of Gaza as human shields, and that, too, is disgraceful.’

Several countries have started to raise concerns about the growing humanitarian crisis in Gaza as Israel prepares to invade the territory after falling victim to a surprise attack by Hamas-led terrorists.

Discussions about getting humanitarian aid to Gaza have taken place at various levels, with an urgency to move as ‘quickly as possible on the critical issue of humanitarian access in Gaza.’

At least 3,200 people have been killed since Hamas launched thousands of missiles into Israel last week, including at least 1,300 Israeli civilians and soldiers and 27 Americans. Palestinian health authorities say at least 2,215 Palestinians have been killed, and more than 8,700 wounded.

On Friday, Israel issued a warning for residents in northern Gaza to evacuate the area within 24 hours as a ‘humanitarian step’ that aims to ‘minimize civilian casualties’ during its planned ground offensive into the territory. 

The United Nation’s Office for the Coordination of Humanitarian Affairs reported that the cumulative figure of displaced individuals has exceeded 338,000, ‘of whom over two-thirds are taking shelter in schools run by the UNRWA,’ referring to the Relief and Works Agency for Palestine Relief in the Near East. 

The U.S. urged Israel to delay the start of the operation to allow the 1.1 million people living in the north to relocate. President Biden and Blinken have both repeatedly stressed the need for Israel to adhere to the ‘rules of war.’ 

The U.S. has reiterated that Hamas is responsible for the current atrocities and do not reflect the Palestinian people, who must be protected. 

Egyptian President Abdel Fattah el-Sissi called for access through Rafah in a speech Thursday, but he also warned against letting in large numbers of Palestinians.

‘The threat there is significant because it means the liquidation of this (Palestinian) cause,’ el-Sissi said at a military college graduation ceremony in Cairo. ‘It’s important for its people to stay steadfast and exist on its land.’

The Egyptian Foreign Ministry later called the evacuation order a ‘grave violation’ of international law. 

Egyptian officials have long feared that Israel seeks to make their country responsible for Palestinians in Gaza, which Egypt ruled between the 1948 and 1967 Mideast wars. Egypt has joined Israel in its blockade of the Gaza Strip since the Hamas takeover, tightly controlling entry of supplies and the exit of people.

Peter Aitken of Fox News Digital contributed to this report.

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DETROIT — The United Auto Workers union isn’t adding any factories to those that are now on strike, but its president says more walkouts could begin at any moment.

Until this week the union had been announcing additional factories on Fridays. But UAW President Shawn Fain told workers in a live video appearance that the companies started gaming the system, waiting until Fridays to make progress in bargaining.

“We will be calling out plants when we need to, where we need to, with little notice,” Fain said on Friday morning. “We’re not sticking to one pattern or one system of giving these companies an extra hour or an extra day. They know what needs to happen and they know how to get it done.”

Fain said the union is still bargaining hard with General Motors and Jeep maker Stellantis. But he criticized Ford, which said Thursday that it had reached the limit of how much money it will spend to settle the strike.

“I found a pathetic irony in that statement,” Fain said, adding that it’s workers who have reached their limits by not getting raises for a decade and giving up what he called retirement security.

His statements came four weeks after the union began its walkouts against the Detroit automakers on Sept. 15.

The strikes started with one assembly plant from each company. The union later added 38 parts warehouses at GM and Stellantis, and then one assembly factory each from Ford and GM. The UAW then made a surprise move on Wednesday, escalating the strikes by adding a huge Ford pickup truck and SUV plant in Kentucky.

About 33,700 workers are on strike against the companies. Analysts say parts supply companies, especially smaller ones without a lot of cash reserves, will be squeezed as the strikes go on.

The head of Ford’s combustion engine vehicle unit said Thursday that the company had reached its limit for the amount of money it will spend to reach a deal with the union.

Kumar Galhotra, president of the Ford Blue business unit, told reporters Thursday that the company stretched to get to the offer it now has on the table that includes a 23% pay raise over four years and other benefit increases.

“We have been very clear we are at the limit,” he said on a conference call with reporters. “We risk the ability to invest in the business and profitably grow. And profitable growth is in the best interest of everybody at Ford.”

The company has a set amount of money, but is willing to move dollars around in a way that might fit the union’s needs, Galhotra said, adding that he still thinks it’s possible to reach a deal.

But Fain told workers Friday that the union added the Kentucky plant after Ford presented an economic offer Wednesday with no more money than a proposal from two weeks ago.

“Ford thought they could wait until Friday morning and then just make a better offer. They stopped being interested in reaching a fair deal now and only became interested in gaming our system of announcing strike expansions on Friday,” Fain said. “They thought they figured out the so-called rules of the game. So we changed the rules.”

Fain added that the Kentucky truck plant strike is sending a “very clear message” to Ford — as well as GM and Stellantis.

The union began the strike by targeting a small number of plants from each company rather than have all 146,000 UAW members at the automakers go on strike at the same time.

Last week, the union reported progress in the talks and decided not to add any more plants. This came after GM agreed to bring joint-venture electric vehicle battery factories into the national master contract, almost assuring that the plants will be unionized.

Battery plants are a major point of contention in the negotiations. The UAW wants those plants to be unionized to assure jobs and top wages for workers who will be displaced by the industry’s ongoing transition to electric vehicles.

Galhotra said Ford is trying to figure out the complexities of pulling its joint venture battery factories into the national contract with the UAW. That would match GM and essentially ensure the plants would be union.

Fain told workers that despite the escalation, they are making progress in their quest to get large wage gains, restore cost of living adjustments, get defined benefit pension plans for all workers, end different pay scale tiers around the nation and win job security assurances with promises to build new vehicles in the U.S.

This post appeared first on NBC NEWS

No One Seems to Want U.S. Treasury Bonds. Does This Sound Familiar?

The slightly-hotter-than-predicted PPI and CPI numbers certainly put a temporary damper on the recent short covering rally in stocks and bonds, raising investor fears about further interest rate increases. But, as I’ve noted recently, fear is often the prelude to a buying opportunity.

Such an opportunity may be developing in the U.S. Treasury Bond market and related interest-sensitive sectors of the stock market, such as homebuilders, real estate investment trusts, and select technology stocks. Still, the financial markets are reaching a decision point, as:

The market’s breadth faces a test of support;Oil prices rebound;Bond yields trade at extraordinary levels; andGeopolitical storms arise and escalate in multiple regions simultaneously.

There Are No Bond Bulls Left

Suddenly, no one wants to own U.S. Treasury Bonds. This bearish climate resembles the negative market sentiment we saw in crude oil back in May 2022, right before prices bottomed and rallied well into the early fall.

The headlines blame inflation for the rise in rates. But that’s only part of the story, as the recent climb in yields, such as what we’ve seen in the U.S. Ten Year Treasury Note (TNX) over the past few weeks, is also due to what may be coordinated selling by China, Brazil, and Saudi Arabia, according to a report on the crypto site The Daily HODL, which noted the BRICS trio, combined, sold over $17 billion in U.S. Treasuries in the month of September alone.

From an investment standpoint, what’s important is that this highly unusual trading pattern often precedes a trend reversal, which seems to be unfolding in fits and starts. Let’s put this in perspective. TNX is now trading between two and three standard deviations above its 200-day moving average; an event which has exceeded normal long-term pricing expectations by a two to threefold margin.  

The key to this price chart is the area between the upper red and blue lines. Those are not moving averages; they are Bollinger Bands. The red line is three standard deviations above the 200-day moving average, while the blue line marks two standard deviations above the 200-day moving average. In other words, TNX is trading so far above what is considered “normal” that it’s in uncharted territory, as defined by its standard deviations from the norm.

This is unsustainable, which means that when the reversion to the mean occurs, it should be quite sizeable. If there is no reversion to the mean, then the bond market is being redefined. I don’t know what that means, but it doesn’t sound like it would end well given its central role in global finance. The key is what happens at the 4.5% yield and the RSI 50 level. If yields fall below those two important benchmarks, it would signal that the bond market is getting back to a more normal trading pattern.

This rise in TNX has triggered an equally unsustainable rise in mortgage rates, which would be expected to lead to a crash in homebuilder stocks.

And yet the SPDR S&P Homebuilders ETF (XHB), although in a price correction, has not made a new low in response to the most recent spike in yields and mortgage rates. This is a bullish development for patient investors in homebuilder stocks. As long as XHB holds above the 200-day moving average, the homebuilder trade remains constructive.

Join the smart money at Joe Duarte in the Money Options.com, where I have just added five homebuilder stocks to the model portfolios. You can have a look at my latest recommendations FREE with a two-week trial subscription. And for frequent updates on real estate and housing, click here.

Picking Up the Pieces in the Oil Patch

The oil sector has quickly recovered after being sold aggressively in response to a 10/4/23 U.S. EIA report, which showed a larger-than-expected build in gasoline supplies. The market was well overbought ahead of that and was certainly ripe for such an event.

That said, the initially rapid decline in crude has slowed, partially due to the unfolding events in Israel and the potential for oil supply disruptions. All of which begs the question of what’s next for the oil sector.

West Texas Intermediate (WTIC) has found support at the $85 area near its 50-day moving average and now looks to get back above $90. If successful, look for another attempt to move above $95.

The diversified Energy Sector SPDR ETF (XLE) has recovered, moving back above its 50-day moving average after last week’s sudden selloff, which took it to a nearly oversold RSI reading. It does have a substantial amount of support in the combination of a huge block of Volume-by-Price (VBP bars), as well as the 200-day moving average as far down as $84. Accumulation/Distribution (ADI) and On Balance Volume (OBV) both turned up to confirm the return of positive money flows into the sector.

The Van Eck Oil Service Sector ETF (OIH) held up better than XLE on the selloff, but has not rebounded to the same degree. It has found support near its 50-day moving average, while ADI and OBV are turning up as well.

A more bullish pattern is visible in the iShares U.S. Oil & Gas Exploration ETF (IEO), which is nearing its recent highs and is on the verge of a breakout. I recently posted two new energy stock trades at Joe Duarte in the Money Options.com here.

Incidentally, if you’re looking for the perfect price chart set up, check out my latest YD5 video, where I detail one of my favorite bullish setups. This video will prepare you for the next phase in the market.

The Market’s Breadth Remains Above Support

The NYSE Advance Decline line (NYAD) remained below its 200-day moving average last week, but again remained above its recent March and May bottoms. A break below those levels would be very bearish. On the other hand, any further weakness in NYAD would lead to an oversold reading in the RSI, which could be the final washout of this correction.

The Nasdaq 100 Index (NDX) continues to test the 14500-15000 trading range area, with support at its 50-day moving average. ADI and OBV are both bouncing, which means short-covering (ADI) and buying (OBV) are occurring simultaneously.

The S&P 500 (SPX) is struggling between the 4250-4400 area, with the 50-day moving average providing overhead resistance. ADI is rising as short sellers cover their positions. If OBV turns up, it will be even more bullish.

VIX Remains Below 20

As it has done for the past few weeks during which the market has corrected, VIX has remained stubbornly below the 20 area despite multiple attempts to rise above this key chart point. A move above 20 would be very negative.

When the VIX rises, stocks tend to fall, as rising put volume is a sign that market makers are selling stock index futures to hedge their put sales to the public. A fall in VIX is bullish, as it means less put option buying, and it eventually leads to call buying, which causes market makers to hedge by buying stock index futures. This raises the odds of higher stock prices.

To get the latest information on options trading, check out Options Trading for Dummies, now in its 4th Edition—Get Your Copy Now! Now also available in Audible audiobook format!

#1 New Release on Options Trading!

Good news! I’ve made my NYAD-Complexity – Chaos chart (featured on my YD5 videos) and a few other favorites public. You can find them here.

Joe Duarte

In The Money Options

Joe Duarte is a former money manager, an active trader, and a widely recognized independent stock market analyst since 1987. He is author of eight investment books, including the best-selling Trading Options for Dummies, rated a TOP Options Book for 2018 by Benzinga.com and now in its third edition, plus The Everything Investing in Your 20s and 30s Book and six other trading books.

The Everything Investing in Your 20s and 30s Book is available at Amazon and Barnes and Noble. It has also been recommended as a Washington Post Color of Money Book of the Month.

To receive Joe’s exclusive stock, option and ETF recommendations, in your mailbox every week visit https://joeduarteinthemoneyoptions.com/secure/order_email.asp.

Few individual stocks are truly worthy of a long-term investment. The truth of the matter is that most stocks have solid quarters, but rarely sustain that strength and growth over years and decades. In fact, many industry groups suffer from the same problem and it’s one reason why many long-term “buy and hold” investors don’t understand why their strategy is failing. They simply don’t buy the right stocks, those that have exceptional long-term track records. Companies need long-term competitive edges, innovation, excellent leadership, and lots of luck to perform at a high level over decades and few accomplish it.

One example of an industry group that fails the test of time is apparel retailers ($DJUSRA). Yes, they’ll catch fire from time to time, but investing long-term in apparel retailers usually results in underperformance. Take one look at this long-term chart, especially the last decade, of the DJUSRA and you’ll see what I mean:

If you only look at the top panel, you’ll see what appears to be a fairly solid long-term uptrend. However, the bottom panel reflects the relative chart, apparel retail vs. the benchmark S&P 500. Throughout the entire secular bull market advance since 2013, the DJUSRA has been steadily declining vs. the S&P 500. In order to invest in this area and outperform the S&P 500, you’d better be a great individual stock picker, because the group has been a major disappointment.

This type of relative performance, or lack thereof, is the primary reason we established our portfolios at EarningsBeats.com. We only hold stocks for one quarter, and then we “re-draft” the stocks we want to own for the next 90 days. Our goal is to find stocks outperforming in the moment. By doing so, we avoid the long-term implications of investing in a group that consistently underperforms the S&P 500 like the apparel retailers.

Individual stocks within that apparel retail group, however, can still be great shorter-term investments and I’ll be featuring one of them in our Monday EB Digest newsletter. Subscription is completely FREE with no credit card required. To join, simply CLICK HERE and enter your name and email address and I’ll send you that strong apparel retailer tomorrow morning!

Happy trading!

Tom

Two of the people closest to Sam Bankman-Fried were asked the same question as they began their testimony this week: Did they commit financial crimes while they were working at FTX, the cryptocurrency exchange that crumbled last fall?

Both Gary Wang and Caroline Ellison answered ‘Yes.’

While the finer points of cryptocurrencies, financial market trading and securities law can seem dizzying, the most striking moments in the first two weeks of Bankman-Fried’s trial have been relatively simple.

Here’s a rundown of some of the key moments from the trial so far:

The cocoa bean trader

The government began its case not with an FTX insider but with a commodities broker named Marc-Antoine Julliard, who said he invested $100,000 with FTX.

Julliard testified that he decided to buy digital currencies to diversify his investments and that he bought through FTX because it had attracted so much media coverage and because of the celebrities and investment funds involved with it. He said he didn’t make any risky trades but lost almost all of his investment when FTX failed.

Prosecutors called him to represent typical investors who, according to the government, lost money because Bankman-Fried and his co-workers fooled those investors and spent the money on themselves or gave it to lenders to Alameda Research, Bankman-Fried’s hedge fund.

Bankman-Fried’s lawyers argue that he didn’t defraud anyone, that startups like FTX are complex and often fail and that the government is looking for someone to blame for customers’ losses.

This post appeared first on NBC NEWS

In the previous technical note, it was mentioned that the volatility gauge INDIAVIX stays at its lowest levels and this setup keeps the markets vulnerable to profit-taking bouts from the current levels. Over the past five days, the markets showed some signs of profit-taking, but at the same time, they largely consolidated and traded in a range. The trading range stayed modest at 362 points as the index oscillated within this range. The global equities remained largely stable, but some stress stayed visible. Overall, the markets continued to consolidate while defending important support levels; the headline index closed with a net gain of 97.55 points (+0.50%) on a weekly basis.

From a technical perspective, in the week before this one, the NIFTY had tested the 20-week MA and had taken support by rebounding from that point. The 20-week MA which currently stays at 19387 remains an important support for the markets on a closing basis. The markets will consolidate so long as they keep their head above this point; any violation of this level will make the markets incrementally weaker. The volatility gauge, INDIAVIX, showed a marginal increase of 3.08% to 10.62 on a weekly basis. It remains within a striking distance of 10.14, the lowest level seen on this indicator so far. This remains a point of concern as this keeps the markets exposed to profit-taking bouts as mentioned earlier.

Monday is likely to see a tepid start to the week; the levels of 19880 and 19950 are expected to act as potential resistance points. The supports come in at 19500 and 19380 levels.

The weekly RSI is 62.33; it stays neutral and does not show any divergence against the price. The weekly MACD is bearish and trades below its signal line. A bullish engulfing candle has emerged; however, it is of little significance as it has emerged with an overall uptrend after just a minor decline.

The pattern analysis of the weekly charts shows that the markets are unlikely to see any runaway up move; any extension of the move on the higher side will find resistance to the upward-rising trend line which begins from 18900 and joins subsequent higher tops. On the lower side, the NIFTY has important support at 20-week MA currently placed at 19387. So long as this is protected, the index will consolidate in a defined range and shall get incrementally weaker if this important support level is violated on a closing basis.

All and all, it is the time when we get cautious about the markets. Even if the move gets extended over the coming days, it would be prudent to use such moves on the upside to vigilantly protect profits at higher levels. Fresh purchases should be kept highly selective and within defensive and low-beta pockets. While keeping overall exposures at modest levels, a cautious outlook is advised over the coming week.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) show that the Nifty Pharma Index which was inside the leading quadrant until now has rolled inside the weakening quadrant. Besides this, the IT, Energy, Midcap100, Media, Metal, PSE, PSU Bank, and Infrastructure indices are also inside the leading quadrant. Out of these groups, except PSE, PSU Bank, and the Infrastructure index, all others are showing a slowdown and paring of their relative momentum against the broader markets.

Along with the Pharma index, the Realty, and the Auto Index are also inside the weakening quadrant. However, both of these indices are showing improvement in their relative momentum.

Nifty Bank and Financial Services index are seen languishing inside the lagging quadrant. The FMCG and the Consumption index are also inside the lagging quadrant, but they are seen improving their relative momentum against the broader Nifty 500 index.

The Nifty Commodities index and Services Sector index are inside the improving quadrant.

Important Note: RRG™ charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae