Monday, May 22, 2017

#CABLE Uneasy Over #BREXIT, #EURO Benefits

The discussions over how much it could cost the UK to exit the EU is what the ministers have been discussing all along. A fresh mandate for UK PM Theresa May would provide her with ample negotiating power but it now seems to be trimming down.

This now seems to be a 'Deja Vu' or a similar situation when John Majors likewise walked out from the ERM that led to a massive decline of the Sterling Pound. And the ill effects of another action of simply walking out from the EU is up in the air as some reports have mentioned.

EURBP Cross Rate As of 5.21.17
What ever the case maybe, the European majors have gained traction with prices recovering above their recent range bound levels where the #EURUSD is now trading @1.1258 & #CABLE @1.3017 as of this writing. This enabled the #EURGBP Cross rate to outmaneuver a lagging price stalled earlier last week  @0.8600 with an opening gap @0.8615 have provided a lift for the EURO to extend its gains in the early US trading session.

UPDATE: As a result, the EURGBP Cross has emerged as the beneficiary of such market condition as it is currently being traded at 0.8743 as of this writing.

For now with a slight exception to the rule for the Pound: the EURO correlated currency pairs reflects a positive tone still supported by a corrective weaker USD. This would also leave an equally good sentiment for the European majors and their respective counterparts to increase market actions long been sluggish from their individual trading range. Its about time!

Wednesday, May 17, 2017

Which of these Two (2) Issues would Dominate the Market?

The PSEI has recovered from two recent lows at 7685 and 7724 while it made a two recent high at 7860 and 7840 from their daily trading sessions. Staying above the 7800 and slowly narrowing the trading range shows a steady price levels as market participants await the results of the GDP figures by Thursday. As this may bring about fresh incentives for the market to increase market volatility by the end of the trading week. Something's got to give in!

Let us see how the PSEI can isolate itself from the ill effects of a political battle front that Pres. Donald Trump is facing and how the US markets react on these issues. As of this writing, the #DOW, #SP500 & #NASDAQ are down and may create a ripple effect towards the subsequent markets in Asia and Europe. However, this will be defined tomorrow when the markets open but would not discount the probability that markets would have contrasting market swings.

But what is more important is at the end of the week's trading the true colors of what the market has already defined would be 'REFLECTED' thereafter. That is why it is important to be able to know how to HANDLE A MARKET SELLOFF or a MAJOR CORRECTION whenever it occurs.

Summary on ASIAN MARKET ETFs

The PSEI 4.13% is still trailing behind global stocks even among its neighbors with China 8.55% and India leading the Asian Pacific Region with 12.69%. Note: Given the right conditions the PSEI has some room for improvement especially with the EEM and commodity prices are on the rise lately. The PSEI has enough room for improvement and is on a trail behind its peers.

MT101 ETF- Fund Exposure to date are as follows:
YTD
    8.55% 14.44
   4.13%  (4.34) last 6/12 months Divergent Trend Covered by US Equities Major Index NASDAQ (XLK link below) 
   12.69% 19.60
   8.57% 15.38
NOTE: EPHE has underperformed compared with the rest of the group. Not included in the list are our EUROPEAN ETFs as Majority of our trades are overweight in the US market in NASDAQ - Global Technology Fund