Adapting to Sentiments Across four (4) Major markets!
USDJPY hits 104.64 low that triggered an equivalent drop on the NK225 at 20559, likewise setting NKDM2018 Futures at 20195; wide price differential and the Yen Futures at 0.009600 inverse price relation with a premium over spot. the strategy is quite expensive though well worth the risk taken as we adjust with the bearish and bullish trade conditions and market sentiments.
USDJPY hits 104.64 low that triggered an equivalent drop on the NK225 at 20559, likewise setting NKDM2018 Futures at 20195; wide price differential and the Yen Futures at 0.009600 inverse price relation with a premium over spot. the strategy is quite expensive though well worth the risk taken as we adjust with the bearish and bullish trade conditions and market sentiments.
A complex trade strategy which we are accustomed to that magnifies the market potential when the trend signal was first defined last Feb 14 from our market outlook. And with the directional move confirmed when it reached 105.50 and now have broken below these levels.
Thus VALIDATING our price and market call from Feb 14 to the close of March 23, 2018. The sequence of analysis and price action took more than a month from the time the information was conceptualized with the USDJPY last February was still trading at 107.09. And a plan of action was built upon this trade idea moving forward. In any trade call where a greater probability of a market potential in the making needs a follow-through trade especially when the directional trend and price action is reflected right on the charts.
Relative Information:
Japanese Yen & Equities at the Crucial Cross Road
Japanese Yen & Equities at the Crucial Cross Road
Respecting the Bearish market sentiment, whenever a trade idea materializes from the first call, building upon that idea is just right. A follow-through can be quite rewarding especially when price action speaks for itself.
ReplyDeleteSimilar to playing tennis; when the ball hits the racket's center zone, a follow through swing provides the power to place the ball in no man's land or just on the baseline, so to speak!
Hence, when tactical investors know that they are right, doing something about improving a correct trade can magnify the probable gains. But there will always be inherent risk when executed poorly. Which can likewise magnify the loss. So trade wisely!
The timing of these trades closed on March 23 could not have come at a better time. When both the US and China have seen the ill effects of an initial trade war does to the equity markets. Thus negotiations are underway no matter who started this first that would ease tensions in the financial markets.
ReplyDeleteOver the weekend and towards the 1st quarter ending for 2018 can see initial results of a 'healing' market recovery well within a shorten trading week before Good Friday. As some analysts have went to the extent of calling a 'window dressing' after these declines as a way to address losses from the market sell off, how ironic can that be. Yes, putting it mildly!
As a result, as of March 27, 2018 the #NK225 closed at 21,317.32 +551.22 (+2.65%) a good follow-through have been seen from US equities with the #DOW moving much higher at 24202.60 +669.40 equivalent to (2.84%) and may retest a comeback near the 25k crucial price level.
ReplyDeleteMeanwhile, NKDM8 futures at 21125.00 a huge +400 point move equivalent to a 1.93% rise from the previous day as of this writing and Volumes were heavier on equities as the USDJPY slight recovery back towards the 105.50.
https://s.tradingview.com/x/fWxzQVkQ/
A timely executed exit strategy is equally important as properly timing a trade entry. Applying the strategies best suitable to outmaneuver the market is what comes next!
ReplyDeleteAfter an array of earnings, ECB monetary stance & external UK data have surrounded the USD as it gains ahead of FOMC. The DXY is above 92.00 at the time of writing.
ReplyDeleteMarket sentments spilled over in Asia as the USDJPY is now above 109.20 with a session high marked at 109.70 nearing the 110.50 first line of defense.
Meanwhile, the NIKKEI 225 is well above 22500 levels with NKDM2018 futures is trailing not too far behind at 22480. As the opening levels for May as the market have been positive as the USD's correlation prevails until such time it does otherwise.