#Equities #Currencies Cross / Alternate Trading / Strategies
We have obviously seen how the markets have been shifting gears with investors taking a cue from the recent Nasdaq decline. While a renewed price recovery helps from the FAAMG stocks, the DOW's resiliency at this time needs a little more respect other than calling it out. These price move is a 'Classic Market Play between Financials & Tech Stocks.'
This has been quite a show of strength and courage for these markets to stay well within their higher bands contrary to and expecting declines. Although, traders and tactical investors have proven to be more pro-active to the recent records highs of the #DOW & #SP500 as they now move closer towards the end of the 2nd quarter trading. Besides, the recent decline from the Nasdaq can be considered a "Market Shakeout' from over-crowded positions other than a 'Flash Crash' so to speak.
As for the currency market, 'Alternating Trades' between #CABLE & #EURO with the fundamental backdrop; the #EURGBP Cross Rate as mentioned in our May 22-26, 2017 market outlook, having been the beneficiary of a Euro recovery. For as long as a continuation of the prices goes above the 1.1380 then we could see the EURGBP go beyond its current prices @0.8820 as of this writing. The #USD-#DXY weakness have contributed more to its recovery rather than on its own.
The same case scenario can be seen on both equities and currency price movements that 'Alternating Trades' could best be made while waiting for some increase in volatility in the market from fresh incentives. Others may call these moves as a 'Rotation' when you're outside looking in, but active traders and investors could properly position themselves to be able to navigate market potential while at the managing risk.
NOTE: Relative to science a 'Paradigm Shift' is where we find that new technology brings about new changes in how investors/traders interact in the global financial markets. That is the very essence and importance of being strategically relevant in today's global connection in trading and investing.
With the market absorbing the FED hike, we've seen that the three major indices are down at the start of the Thursday US trading. The Dow's low @21261 levels (when it holds) for the session was not enough to push it further and started a price recovery that can encourage buying for those who believes that the market is merely in a corrective phase.
ReplyDeleteWatch for corrective price levels especially when the defined trend is still up.