Thursday, July 30, 2015

Market Insight: DXY Confined Above Range

DXY Confined Above Range
Now that the FOMC statements have been made the FED's direction towards the rate increase is well within its time frame. The overall performance of the US economy is steady with jobs and unemployment on track the USD Index after its corrective move for the past two weeks is currently steady moving higher.

 The DXY reaching a session high @97.65 to this writing shows its resiliency for the week ahead. Especially with Gold and Oil favoring a higher USD move have been quite supportive. Nothing has really changed from the last two weeks and coming back to see that the Stock market has yet to find a considerable catalyst to find its breaking point. The wide consolidation of the Dow Jones is still confined within its range. While a few stocks such as SBUX has been steady with prices well on the higher band of its trend. These are the moves that certainly retain and follows its major trend contrary to the roller coaster ride we've previously seen.

The technical angle on this chart figure shows the prices well within its  channel trend applying the Fibonacci Fan and Retracement Theory that defines a well established trend contrary to its daily and weekly pull backs that justifies a healthy correction before the next stage of higher moves seen today.

Have a great weekend!

Friday, July 17, 2015

NOT JUST FOREX: USD Reinforced Position Via UUP

The #housing data has again been the main driver to this market, with the #USD moving well within its establish trend higher. Sitting on tight with #UUP yesterday was @25.30 compared with its current levels @25.60 taking its due from the USD Index. Take note of the consecutive volume build up that provided the early signal that the probability of prices would eventually move to the inclining tech angle higher at the mid-range levels of the Pitchfork

Meanwhile, the N225 (NKY) earlier in Asia just managed to get back lost ground with the #USDJPY now @124 even levels. Wile the rest of our long running stock picks for keeps just simply could not stop the ball rolling. Way to go...#SBUX #GOOG, #FB, 

Thursday, July 9, 2015

Market Brief: Observations & Sentiments

Volatility is all over the market place! The resounding support to stabilize the markets in China have shown that the strong fist of the government is in control of the intervention to stop further bloodbath in the market. With a full swing price recovery from the fresh round of measures both China and Hong Kong are paced for a recovery. The intervention by China government and the cooperation from institutional firms maybe compared to a concerted effort of central bank intervention when markets are derailed from its normal course. 

There are certain concerns about these actions compared to a free-flowing price actions in the market, where market forces are working under certain conditions. However, when the general flow of investors are hysteria the most logical action a governing body is to control and contain the situation such as what happened to the market at the middle of the week's trading. The only valid reason is to allow investors confidence to get back into the market.   

Surprisingly, the timing of a computer glitch in the US Trading market have also provided further decline from the Dow Jones, but still leaving a triple digit decline at the close of the day's trading. Meanwhile, in the currency market; Risk Aversion benefits the Yen's appreciation as it touched the 120.40 levels and a subsequent correction by pulling back towards 121.30 to this writing.

The DXY reaching a 97.23 basis point high have made a slight corrective move lower,  well within its daily range and have not been affected even with the statements from the Fed. The market have been focused more on the Grexit and the China measures that have kept investors uncertain reactions whether to come or go with their respective trades. Although negative contagion still prevails in the market.

So where will traders and investors take the next cue from? Recommendation: Watch and Learn! A good Reference Guide is still the best approach to "Measure Price Action" on a decline and a rebound of prices after a fundamentally driven market by China & Greece. Where Price Action Analysis is the next best way to project the next market call.

Comments: Whew! Sure glad lady luck was still on our side since calling it from the end of the first quarter dark cloud formation and the discipline to take our regular trading break before all hell broke loose. Avoiding such headaches surely pays well. Our two (2) quarter earnings are even more than enough! Knowing when to trade and not to sure does help even for experienced traders as well.

See you all after our break.

Friday, July 3, 2015

Its that time of the year again!

@MegaTrade101 shall be taking its regular quarterly trading break starting today just in time for the celebration. "HAPPY FOURTH OF JULY!"


Thursday, July 2, 2015

NFP Below Expectation - USD Resilient for now!

UPDATE: July 02, 2015
NFP missed expectations and a slight change in Unemployment have barely made the DXY decline a corrective move from a recovery with one day left to trade which priced in an overlay of the end of the week and the opening 2 days of the new month before the 4th of July celebration.. Take note that the USD price recovery has gained back what it lost which scared the "Rookies" out of the market both sides of the US and the Euro markets.

As of July 01 Asian Trading session

The DXY have regained lost ground and rebounded back above key levels @96.00 basis point to this writing prior to up coming reports. Carefully monitoring their price net changes and range trading per session on a pull back or rebound are as equally important that we have always emphasized.

As by Sir Alexander who developed the system can determine the weighted percentage distribution versus the USD ahead of time with a fairly good assumption for each currency pair projected price target levels. This would likewise be the first part of the initial equation to derive its corresponding cross rate value and its projected price level moving forward.

The chart above has no technical indicators, just a simple Candlestick Chart to reflect "PRICE ACTION ANALYSIS' based on price movement and its behavior.