Friday, August 28, 2015

Validating USD Market Call August 23-29, 2015

Yes, indeed the price recovery or as we have termed a "Pull-Buy-Back" on the USD along side with the Dow Jones; where prices have opened lower and extended down towards the 92.62 for the DXY and a corresponding price reaction for the Dow @15370 low. Resulted to a price recovery thereafter heading towards the closing of the week.

A word of caution though, prices have reacted true enough to our market call; these market price swings across the board does not happen all the time. Only on certain market conditions where a contagion occurs and spills over to other markets. Price direction are uncertain and the recent price decline were extreme movements similar to catching a "falling knife" which we do not recommend at all. Certain valid reasons were anticipated and have drawn certain solid conclusion justifying our analysis.

Timing is very critical in executing this type of strategy, while choosing the right financial instruments  and experience have played a huge role in such strategy. Lucky enough we have learned from the best and likewise developed the necessary trading skills to implement this. A combination of futures US Dollar Index, the UUP vs. UDN have also been carefully utilized and corresponding appropriate  ETFs for the index funds have brought about net positive trades. Will provide additional information in our next market view on our website +megatrade101

However, it maybe the chart / graph clearly reflects the strategy to be applied during "Black Monday's Decline". The current closing for the week is a relief price recovery nearing the end of the month's trading which apparently is where institutional and professional traders /fund managers will take their normal position adjustments after these recent moves we have encountered.

As always....There will always be a major correction within a major trend!  Only the best for your trades! 

Have a great weekend!  Cheers!

Thursday, August 27, 2015

Thanks for the Vote of Confidence!

FYI - Here are the stats as to MegaTrade101 combined number of our loyal clients and international traders that have been actively following our analysis for the months of June, July and August 2015. And so far have avoided getting washed out from the extreme volatility of the markets while gaining a remarkable experience of timing the market movements before it even occurred.Congrats!

Although, signals were there and proper positioning have simply walked through these price action that have contributed to some positive net gains well within a specific period of time. Lady Luck was again on our side of the market, but will still be glad to make them.

Much Thanks for the vote of confidence. It was your decisions and we are just your trading guide and mentor!

Tuesday, August 25, 2015

Sunday, August 23, 2015

USD Confirmation and Validation on 94.00 Price Call

UPDATE: Today's low @92.62 basis point as of August 24 2015
On extreme market volatility

USD (DXY) Market RECALL as of JULY 30, 2015

As the chart reflects that once the prices fails to make a convincing resistance breakout; a lower closing below the support of the Andrew's Pitchfork below the 96.00 basis point handle, expect a corrective move with an attempt on the 94.00 on the low end of the previous leg; but would be a higher bottom on the chart when it does occur. On the other hand, other chart patterns are pointed out in our video support on the US Dollar as probable indicators for the next probable directional price action as the formation completes in the next few trading sessions.

A convincing volume and follow-through buildup would only be justified with a much stronger catalyst that can drive a direct candlestick bar that can make the butterfly formation be overshadowed making a substantial rally more justified when it does. Favoring a break higher would still be the primary direction from the consolidation and the recent decline.

Related Link:

Attention: Asian & US-PH Investors / Traders

Market Behavior & Price Reaction

For traders and investors in the Asian markets particularly for the Philippines start of the trading week. Take  a precautionary measures to be able to sustain and absorb the negative impact of the US market spill over sentiments on the PSEI sectors that would be affected from Friday's movements. Being able to fairly yet accurately predicted the DXY low @94.80 before it registered last Friday, the Dow break below the 17000 and the PSEI run through the 7500 levels; its now time to call the price below the 7000 moving forward for the week ahead.

As such moves would open deeply into the market's opening price the same manner that such bearish contagion would easily place the surrounding markets into hysteria that would force liquidation as prices reacts strongly. However, do not discount the case scenario where institutional may drive prices much lower after the opening bell and time a pull-buy-back from their lowest points. This is a common practice for companies with deep pockets to control stock prices by simply buying back what main street investors takes the loss when they throw in the towel.  

This would provide a rebound or a short-live temporary relief and a price recovery from short-covering positions not only for Asian investors and traders , likewise as an anticipatory reaction from last week's declines. This normal market reaction may not occur right away and may simply try to take time to build its price adjustment period within the three major market's trading session.

This is a brief case scenario waiting to happen! Not unless a stronger follow through of such declines would be carried over by bears which would add more insult to injury. Watch, Learn and just be on the side line for now, while waiting for the next few days. Due diligence is a must and take the necessary strategies available to you as an investor and/or trader.