Thursday, December 31, 2015

Have A Great 2016 Year

 

 "A Prosperous New Year For  All Your Analysis & Trades This 2016" Have a GREAT Year!

WELCOME 2016 

With Great Heights & For His Greater Glory

Sunday, December 20, 2015

May the FORCE be with your TRADES!

Have a GREAT & HAPPY Season's Holiday to ALL!


CHEERS!

Saturday, December 19, 2015

IMF & CHINA's Version of the CNH Renminbi Index

China's Version of the CNH Renminbi Index by the China Foreign Exchange Trading System which recently launched the new Chinese Yuan Index as a trade weighted average of 13 currencies in the basket compared with the International Monetary Fund's - IMF composite of four (4) major currency pairs.  

This would provide some important details as to how the USDCNH and the rest of the currency pairs compare in the basket as alternative strategies in trading the cross rates with the Chinese Yuan in the Foreign Exchange market.

Friday, December 18, 2015

Quadruple Witching Adds to DOW & SP500 Decline

A 2nd Retest of the DOW JONES Industrial & the SP500 Decline will ripple its price action in the Asian market as probable contagion can finally happen by the coming week as we draw closer towards the end of the year's trading. This has been ignored by other traders not quite familiar with and how to navigate correlation with other markets.

Being a quadruple witching day with the expiration date of various stock index futures, stock index options, stock options and single stock futures are putting weight on the stock prices. This is on top of the price pressure from Oil price decline and a delayed reaction from the FED's actions that saw a 'relief rally' a few days ago as we stated in the previous analysis was just a temporary reaction from the FED's announcement.

Dow Jones Industrial Average Overlay SP500
Quadruple Witching Adds to DOW & SP500 Decline

BOJ Surprise Move Ripples Across the Board

It was the BOJ move of buying additional ETFs to expand their asset purchases that moved the Nikkei 225 Average towards the 19900 & for the USDJPY @123.55 before retreating quickly lower. A whipsaw where volatility on the last trading day for the week was a total surprise for the market. This move has affected all cross rates related to the Japanese Yen which saw traders frantic on what the next price swing would be made in the US market.

The Bank of Japan's massive stimulus target still remains, while expanding the types of assets it purchases to increase the probability that they meet their target objectives. Utilizing the ETFs is becoming more sophisticated for BOJ in companies that are investing in physical and human capital is an amazing new approach for us to hear from the BOJ out of the traditional forms. Besides, buying another ¥300 billion ($2.45 billion) of exchange-traded equity funds, in addition to the ¥3 trillion in ETFs it has purchased since late 2014 is really a surprise for the market.




Saturday, December 12, 2015

The 1M Dollar Question Finally Answered

UPDATE: The FED came through with the minimal rate hike and a dovish yet gradual pace of how the market would perform moving forward. The market's relief rally was an added bonus contrary to the lack of volatility. And this fact have supported the recovery of the US Dollar.

_______________________________________________
Expect the Unexpected

Is the market ready in the 'unlikely event' that the FED does an ECB Draghi like Switcheroo?

With Stocks & USD declines ...UNCERTAINTY ... does pivot into play. Cautiously, will all watch and learn!

Have a "Great Season's Holiday!"  ONLY THE BEST FOR YOUR TRADES!

Friday, December 11, 2015

HEDGE STRATEGY - US DOW & SP500 CFDs / ETF

US ASIAN PH INVESTORS MARKET ALERT

Covering gains made and protecting value in the overall portfolio provides a Hedge on stock declines such as the current moves. A decline in the USD starting of with Mario Draghi's inactivity have dampened more investors sentiments while Fed policy still remains towards a rate hike.

Learning to utilize other market correlated indices such as the Contract For Difference - CFDs, US DOW 30 or an SH:arcx SP500 though an expensive strategy that carries a direct correlation with the DOW's and SP500 index price move can be another "Alternative" to offset any more price drawdown that may eat up gains made over the past few months. A mirror image of the DOW and SP500 CFDs / ETF is reflected on this market call & strategy.

Just take it one step at a time. However, this would be the 2nd Alert call for US-Asian PH investors for a ripple effect on a triple digit decline on Wall Street which would be followed in the global exchanges. Volatility will certainly increase as the 4th quarter for 2015 is at hand.

MIRROR IMAGE: US DOW30 & SP500 SH:arcx CFDs / ETF


Thursday, December 3, 2015

EURO Rallys On ECB Draghi

@MegaTrade101 Ride a Continuing Trend!

When USD softens on a pullback the AUDUSD will continue its trend. But today's statements from ECB Mario Draghi have brought such disappointment of not delivering what was expected have provided a nice bounce back higher for the EURO near the 1.0900 and drove the 1st decline for the USD @98.62 session low. Its was the Euro's turn to shine back into the spotlight until Friday's NFP #'s.

Euro Chart on Cloud

The market reaction where more correlated with the European majors and crosses but not as much as with the Asian currency pairs and their relative cross rates. Media highlights were so centered on a more active move from the ECB, as they were all expecting a 'shock & awe' with the ECB transparent guidance on addition more stimulus was really played out well to their advantage. But still got the awesome rally of the EURO.

Thus driving the initial decline for the USD along side disappointing bearish US reports leading to an even lower price touching 97.60 basis point. Meanwhile, the spill over effects on CABLE were relatively milder with a modest bounce @1.5155/60 levels.

The direct effect on the Euro were affected with short-covering rallies have added to some decent profit-taking for previous trades taken the past week. The market were pretty much mix after the price swings brought about from the press conference.

Wednesday, December 2, 2015

TRADE SEQUENCE ll: SCALING UP Positions

"Ride a Continuing Trend"


The following series of trades are best defined with almost all respective positions on the AUDUSD, AUDJPY SGDJPY are in place; the next objective is to protect those gains by watching the reports real well this week.

Any sudden resurgence of the USD index higher above the 100.39 previous 1st high and 100.31 20d high would result to a pullback lower on the AUD and the SGD respectively. However, for as long as the overall secular market sentiments remain in favor of the USD, the degree of price recovery may well be in check. The Asian currency choice was pre-determined as the best probable choice compared to the European majors underlying negative / bearish sentiments. 

TRADE SEQUENCE ll: SCALING UP Positions