Thursday, August 25, 2016

Short-term Trades on Trend Following EURO

Trading is still a number's game, so to speak, where it is often described as a zero-sum game that there are more losers than winners. Yet, a lot of so called market guru's presentation are always the same as the portrait of winnings can overshadow the risk of loss.

A clear cut example in one of the recent presentation made was riding a trend that reflects more than a thousand point move or 1000 pips in the FX market. Why it is so important, is because the wide range of the price retracement and their corresponding objectives is based on the real net changes on the closing. This is where the Moving averages and the Average True range reflected eliminates the noise (false moves) and price disruptions of the particular currency pair.

Trend Following EURO

Sunday, August 21, 2016

Cross Trading Activity Tightens: #USDJPY vs. #USD (DXY) Asia

BOJ Kuroda statements were interpreted again. to be negative for the market that reflected an opening gap @100.77 nearing the 101.00 handle. This price reaction is considered to be more on profit-taking instead of fresh positions by bulls. Others may disagree, as they see this as an additional stimulus action by the #BOJ in the near term.

The registered low below 100.00 @99.42 / #USDJPY; with a rebound in Asia is also a technical move where the ripple effect of the #ADXY moving back lower in early session @107.00, compared with the closing of US #DXY - NY session last Friday @94.50 basis point price recovery.

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Thursday, August 18, 2016

#TSOT - MT101 - Market Perspective & Insight: CCY & STOCK Indices

Alternating currency trade between the US Dollar & Yen has been a norm for investors shifting with the Yen gaining strength on #USD weakness initially breaking below the #DXY - 95.05/10 levels led the decline registering a low @94.42 basis point on the session, while the #YEN trading below the 100.00 mark & comparing it with JYZ2016 Futures contract

The FOMC minutes barely helped investor & traders set a clear direction that led to a USD dropping to its former levels. While the #EURUSD continue to take advantage by climbing back above the 1.1300 levels to this writing. And the British Pound (#CABLE) have benefited from the USD; pacing the #EURO currently @1.3065 from a low @1.2789.

Alternating Trade between the two majors & Shifting these pairs has been a market strategy applied whenever such conditions are reflected in the market place. But this has not changed our market outlook as we are merely adapting the trades with the changes as they happen.

Apparently, the incremental net changes on the DOW and SP500  Overlay continue while sustaining their respective price range within tolerable up and down swings. A lot of growing pessimism among legendary names have been calling a major correction / decline for stocks for sometime. Such legendary calls from George Soros and Paul Tudor Jones have started to double down on their bets as early as the 2nd quarter based on their SEC F13 filing of their trade positions which are at a loss at current market levels. And not suffer the same fate that John Paulson had with the #Gold market after making a killing with mortgage rates.

Now we shall see who really gets to blink first in the event that a remarkable rally would happen with the major indices still hovering at the higher band contrary to their respective market corrections. As we +megatrade101  remain on course well within the SP500 trend marking 2080 /2105 range as a valid support to hold pour stand. Strategies are in place for Options & ETFs to cover any such declines in stocks. For as long as the #NASD holds its ground above 5k we should be good to still go on course! While protective trades are in play ONLY whenever it is needed.

Wednesday, August 10, 2016

Beyond Charting & Tech Analysis: #DOW #SP500 #DXY (Excerpt 1 of a Series)

In contrast to Marc Faber's call for a stock market crash, this has been the headlines for the Dow Jones & SP500 benchmark indices making new highs. As prices move higher from their lows a widening price range continues to dominate the market. Faber's version of a 'megaphone' formation (opposite to a symmetrical triangle) is quite similar to our technical version applied on the chart which is a 'Disjoint Angle Pattern called last July 19, 2016. And not as often do we see such formation occur, and only until the formation is completed that traders can identify it.

NOTE: The Megaphone or Disjoint formation is just an 'INTEGRAL PART' of the overall outlook for the DOW SP500 & the USD

Beyond Charting & Technical Analysis

Tuesday, August 9, 2016

A Test of PRICE Resiliency & Market PATIENCE

As prices for the stock indices move to record levels, this is where investor / traders keen observation of the market takes place. With the #DJIA price trailing the #SP500 have signaled a level of price uncertainty among investors sidelined and hesitation of getting into the market due to high price. The scenario continues for early investors who plunged into the market at the end of the 2nd quarter are in a better position to protect their gains or simply cash in their profits.

Recent positive US data have provided the price resiliency, but others are 'patiently' weary that market complacency may soon prove to be taken for granted when a sudden & unexpected occurrence of a turn around may emerge. The question of when this could be expected; is a matter of perspective, yet normally comes after the fact.

As previously mentioned, the 'incremental' price change on the major indices particularly with the #DOW, #SP500 and  #NASD at current levels have remained strong. The price corrections are considered to make room for lagging technical indicators to adjust as the directional trend continues to prevail.  For now, there are no real serious threat for a follow through with a momentum driven decline for stocks would occur in the near term. Of course not unless proven to be wrong with an unknown market fundamental coming in from the newswire.

CHART Cloud Comparison 2