Wednesday, February 25, 2015

Prepare to Ride a Trend In the Making

More often market trends can only be identified 'after the fact' when prices have moved in a particular direction. This is certainly true for every financial instrument either in stocks, foreign currency or commodity markets trading. And when it finally does, every trader or investor would say how they wish they could have stayed and held-on to these stocks or currency pair. Only a few exceptional investors and traders would have been able to anticipate such market potential in-the-making. While other traders might have simply walked into a fortunate event out of mere luck can likewise be well accepted.

Being able to ride a probable market potential can be defined even before it actually happen. This is the very essence of how strategists with exceptional trading abilities stays ahead from the rest of the pack. Developing these strategies can best be applied by following proper guidelines that can cover all possible angles of a draw down. Although, one of the most common distractions, so to speak is the relative price swings that can stop-out a position even before establishing its true market direction. The frustration of which is that the trade was either not appropriately executed within a specific time-frame that have resulted in a loss prior to getting back to the original side of the trade set-up.

Prepare to Ride a Trend In the Making

Friday, February 20, 2015

USD Index (DXY) compared with an Exchange Traded Fund (ETF)

The DXY or Dixie as most traders refer to is the measure of the value of the US Dollar in a trade weight average called an 'index' which is relative to factoring the exchange rates composition of the six major trading partners foreign currencies within the basket. This index is similar to other trade-weighted indexes, which also uses the exchange rates from the same major currencies.

Likewise, Exchange traded funds are composed of baskets of stocks traded on an exchange.Some major ETFs do track its major index such as the US Dow Jones, S&P500, Nasdq and the Russel Indices. Although, stocks and indices are based and traded in the different exchanges worldwide, the underlying currency base commonly used is the US Dollar.

And that is why trading stock ETFs from several major exchanges worldwide is likewise relative the underlying currency exchange rate exposure of international investors. However, knowing their respective correlations would be an advantage for sophisticated investors and fund managers to be able to shift investment funds to take advantage of exchange rate price differentials. This is just one of the simplest approach yet the complexity of structuring the portfolio is another story of its own.

US Dollar Index (DXY)

Tuesday, February 17, 2015

Market Strength Remains: CCY Majors - Dow Jones - S&P - USDX

As often as we have mentioned that these are "Exceptional Times" in the market as early as October 2014. The recent market declines on the Dow and the USD have proven to be a correction. Not after the fact, as our market call have been quite in lined with the price direction heading towards December and the 1st quarter trading activity seen today.
With the DJIA back above the 18K levels along with the SP500; it would not be surprising to see the fruition of our market call on the NASDQ in the making and to come much closer to the 5K mark that was called last January 2015. When two (2) of the major indexes have remained well above their respective support levels the spill over and ripple effects would weighing sooner than most would expect. The breath of the maket remains as strong as nearly when price action would finally be reflected. And to anticipate it is entirely a different situation. A clear example, other than the indices are the two CCY majors against the USD Index. Market Strength Remains: CCY Majors - Dow Jones - S

Saturday, February 14, 2015

Investors Transition Not A Transformation

Wall Street has been the “Icon” for most financial analysts and traders as a symbol of trading success being able to trade in New York Board of Trade. And to be able to trade through the Chicago Mercantile Exchange as a trader / investor is also one of the highlights of being able to pursue one’s goals in the financial markets.

These are just two (2) of the main US exchanges that an aspiring trader can set foot & claim have reached a significant milestone in their financial career objectives. Not by making megabucks alone, but once accepted in one of many reputable companies & investment banks the likes of Goldman Sachs, UBS, JP Morgan, BNP Paribas, and other elite Hedge funds in the industry.

Investors Transition Not A Transformation

Sunday, February 8, 2015

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Market Brief for the 1st Quarter of 2015:
Strategies on Trading Currencies & Stock Market Investing through ETFs

Market Brief for the 1st Quarter of 2015: FX & Stocks

Strategies on Trading Currencies & Stock Market Investing through ETFs

The USD has strengthened since its turning point @79.74 in 2014 and currently @94.67 on the closing of Feb 06, 2015. The latest figures on the Non-farm Payrolls have fueled the USD back higher; after its recent correction from an over-extended and overbought area on the chart. The prominence of the USD has provided US investors and traders to rethink strategies being made along with the Stock market’s continuing trend.

This is on top of the moves on interest rate cuts with several banks after the ECB started its own version of QE, Swiss National Bank abandoning their cap with the EURO/CHF that led to a market price swing not seen for sometime. With China providing liquidity for banks, Japan’s move to continue with their own respective version of monetary policy and the Reserve Bank of Australia reducing rates have contributed to the increasing global Currency - Tug of war. 

Strategies on Trading Currencies