Core Insights - The article discusses the ongoing financial strategies and market movements influenced by central banks, particularly focusing on Japan and the U.S. Federal Reserve, highlighting a "financial cold war" among global institutions [1] Group 1: Sovereign Trend Channels - The Japanese yen is currently in an upward channel (152-160), with the Bank of Japan having spent $11 billion to maintain this range, and a potential shift expected around July 22 with the CPI release [1] - Gold is experiencing a narrowing triangle pattern (2440 to 2300), with central banks purchasing gold at an average price of $2350, anticipating a shift within 72 hours of a Middle East ceasefire agreement [1] - The Nasdaq is in a downward channel (20500 to 18700), with a critical support level at 19200, and a potential shift expected around July 24 with Nvidia's earnings report [1] - Oil prices are fluctuating within a wedge pattern (81 to 86), with Saudi Arabia's fiscal balance point at $78, and a shift anticipated due to warnings regarding Iranian nuclear facilities [1] Group 2: Trading Strategies - A strategy for trading within sovereign channels involves shorting when the upper channel experiences a 300% increase in volume, as evidenced by a successful short on the yen at 159.8, yielding a profit of 400 points [1] - When the lower channel shows central bank support, a strategy of leveraging to buy and gamma squeezing is recommended, with a successful case of buying gold at 2320 leading to a $60 increase [1] - A dual breakout order strategy is suggested when the channel narrows to 10 degrees, with a notable case of Bitcoin experiencing significant volatility around $60000 [1] Group 3: Market Dynamics - The article outlines a three-track resonance trading system, emphasizing the importance of geopolitical events, such as oil and gold price movements during conflicts, with a specific example of oil breaking the upper channel at $85 following Israeli airstrikes [2] - The COT positioning divergence is highlighted as a tool for identifying market traps, where a price breakout above the upper channel with record speculative long positions should trigger a short position [2] - The article also mentions the significance of market psychology, where panic selling by retail investors can accelerate price breaks, necessitating central bank intervention, as seen in past currency crises [2]