Market Brief: Observations & Sentiments

Volatility is all over the market place! The resounding support to stabilize the markets in China have shown that the strong fist of the government is in control of the intervention to stop further bloodbath in the market. With a full swing price recovery from the fresh round of measures both China and Hong Kong are paced for a recovery. The intervention by China government and the cooperation from institutional firms maybe compared to a concerted effort of central bank intervention when markets are derailed from its normal course. 

There are certain concerns about these actions compared to a free-flowing price actions in the market, where market forces are working under certain conditions. However, when the general flow of investors are hysteria the most logical action a governing body is to control and contain the situation such as what happened to the market at the middle of the week's trading. The only valid reason is to allow investors confidence to get back into the market.   

Surprisingly, the timing of a computer glitch in the US Trading market have also provided further decline from the Dow Jones, but still leaving a triple digit decline at the close of the day's trading. Meanwhile, in the currency market; Risk Aversion benefits the Yen's appreciation as it touched the 120.40 levels and a subsequent correction by pulling back towards 121.30 to this writing.

The DXY reaching a 97.23 basis point high have made a slight corrective move lower,  well within its daily range and have not been affected even with the statements from the Fed. The market have been focused more on the Grexit and the China measures that have kept investors uncertain reactions whether to come or go with their respective trades. Although negative contagion still prevails in the market.

So where will traders and investors take the next cue from? Recommendation: Watch and Learn! A good Reference Guide is still the best approach to "Measure Price Action" on a decline and a rebound of prices after a fundamentally driven market by China & Greece. Where Price Action Analysis is the next best way to project the next market call.

Comments: Whew! Sure glad lady luck was still on our side since calling it from the end of the first quarter dark cloud formation and the discipline to take our regular trading break before all hell broke loose. Avoiding such headaches surely pays well. Our two (2) quarter earnings are even more than enough! Knowing when to trade and not to sure does help even for experienced traders as well.

See you all after our break.
ONLY THE BEST FOR YOUR TRADES!. TRADE WITH CAUTION.