#TSOT - CONTRARIAN Market Approach for #CABLE

GBPUSD Price Update: @1.4880 as of 6.23.16 early European session

As we recall, far back as the day on September 16, 1992 termed the Black Wednesday; when the British Conservative government withdrew the Pound Sterling from the European Rate Mechanism led by John Majors. Which then proves to be the right and well calculated decision. Although, the end-result was a huge drop of the GBPUSD in a single weeks move thereafter coming from a 2.1080 high.

In comparison from the low prices of CABLE today, the current price levels for the GBPUSD to sustain its initial strength slightly favoring the 'Remain' camp with intra-day corrective moves between its average true range and the HI/LO band will really depend on the actual vote which is too close for comfort.

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CONTRARIAN Market Approach for CABLE

Where #Fundamentals #Technicals Dictates Price Direction

The recent UK negative reports have sent #CABLE declining back towards the 1.4180 session low in the US session last Friday as a result of a price recovery for the #USD index @94.85 from the Jobs data that sent it down @93.42 low. The wide trading range as we made mention, as been the norm where price swings back and forth in both directions has been maintained.

Stretching towards the next couple of weeks ahead, both #FED and #UK_BREXIT will provide the increase in volatility. This will prove to be in part of the end of the 2nd quarter trading that would pave the way towards the opening of the 3rd quarter which likewise provide a glimpse of the true direction. As of CABLE, expectations of a +/-9% -to- +/-35% price swings are well within its wider range in the next two weeks to follow.

Although, MegaTrade101's primary outlook remains neutral to bearish for CABLE, the strategy for these event risks would be played along with Futures &  using Options as an indicator for Spot #GBPUSD; in sync with the US Dollar Index securely positioned from its previous low as a buffer for any adverse price action. With the rest of the portfolio would weigh heavy towards equity indices with the #SP500 more favored than the rest.

In essence, a three-currency play + one  both in #Spot, #Futures, #Options & #ETFs markets would be applied as a strategic plan of action in dealing with these risk events heading towards the end of the 2nd quarter. The advantage of knowing how to play the financial markets not only with Spot; with Futures & Options provides a distinct edge in spreading risk while netting a probable positive result only when done right and executed with the utmost market timing.

The market behavior and price action would be well monitored next week as it would provide a glimpse of the prelude sentiments in the market place before the start of the new quarter trading. We do hope that these market insight would be beneficial for other traders moving forward.

#GBPEUR CROSS RATE - Market Call VALIDATED!

#GBPEUR VALIDATED! CABLE 5.11.16 resumes rally w/ momentum as tech formation supports price action as of 5.24.16

GBPEUR 1.3089 as of 5.24.16 US session high

UPDATE: GBPEUR 1.3160 as of 5.30.16

Reference #TSOT -  #GBPEUR 2nd Alternate Trade Strategy

https://twitter.com/MegaTrade101/status/735095028024889344

Brief Series #Price_Action & Tier 3 #Technicals #USD #EURO #JPY

MEGATRADE101 TRADING APPROACH 
Relative to market conditions and inverse price comparison with Futures and Spot dealing with the US DOLLAR, EURO & the JAPANESE YEN 

CCY Corner: #USDJPY Rightful Trading Approach Varies

What has been overlooked in a traditional training school would be more valuable than ever. Markets recognizes itself and does not necessarily presents its true colors. Only one from two choices. Its 'how to have a keen eye to identify price action, patterns & market behavior along with the right type of market conditions are the key elements of a 'rightful trading approach'. 

USDJPY FOCAL TURNING POINT

Market Insight Turns Trade Position for Value Investing

MegaTrade101.CIPHER3 Analysis

In trading financial markets, undergoing a certain process of deduction takes a considerable due diligence in choosing which of these instruments best suits current market conditions that would well have the highest market potential with the best probable return over a period of time.

After a extensive due diligence in the current FX market, while the process that took place started as an initial speculative outlook, the current resulting price action from our recent market position on the Australian Dollar, SPOT AUDUSD - AUDH2016 Futures has just changed its status into a smart trade position for value investing.

Market Insight Turns Trade Position for Value Investing

Alternative CCY Hedge Strategy ETFs

ETFs v. USD weakness v. JPY strength are the right combination for this bear market, with the expected follow-through. The Effective Price Action Analysis & Market behavior are still in place as hysteria is boiling across the major global markets.

Making the right choices of instruments which are correlated that provides wealth preservation while building additional equity and staying liquid with assets well protected by an excellent strategy that serves as a layer of cushion in exceptional trading times.

A CIPHER3 Method Applied

 

SP500 V SP SH Flip-side of the Coin

SP500 bound to test Oct starting point as initial first line of defense that may create a 'Hysteria Market' as the Asia global shares have made. As percentage declines spread over time since October 2015 to January 2016 have weighed a top heavy on a tech perspective. This is were fundamental forces have been dominant in the market's behavior

@MegaTrade101 SP500 v SH is a Flip-Side of the coin; unorthodox approach yet quite effective at times and out of the ordinary. And this approach be be classified as looking at the charts in a different perspective from the traditional way of technical analysis

Cautious as it may seem for traders not willing or simply unable to do anything now as the negative contagion on stocks and Oil other than China. JPN225 have now been included in the decline during the Asian trading session.

Trade Sequence Follows Trend On CABLE & AUSSIE

AUDUSD

UPDATE: Trade Sequence have Just been Validated As of Nov. 20  24, 2015 US Trading session EST

Anticipating a probable corrective move for the USD are in line with the daily session lows in stocks; the momentum has dwindled as investors digest some relatively bearish reports both in the US retail and ECB Mario Draghi's comments.

The spill over effects from the EURO dented Cable's gain which signaled a probable down turn for the European majors. The resiliency of the USDJPY was still holding above its bench mark levels since the BOJ statements were overshadowed with how investors viewed stocks including the Asian NIKKEI 225 Average staying above the 19850 levels.

AUDUSD Price Recovery & CABLE's Decline
Brief Insight: Behind the Strategy ll 

Trade Sequence Follows Trend On CABLE & AUSSIE

Trade Summary On Cross Rates 2

Net Percentage Trading can only be as effective when choosing the right combination of correlated currency pairs that are timely executed  in the market. While treating a loss as a cushion against unexpected adverse price fluctuations.

MegaTrade101.com Video Support Trade Summary On Cross Rates

USDJPY,  AUDJPY, GBPJPY, SGDJPY, CABLE
Focus on the Japanese Yen related cross rates with an arbitrary hedging strategy on Cable against adverse price fluctuation

NOT JUST FOREX: Validated: JPN225 & USDJPY

JP NIKKEI AVE.

Market Call Validated as of Nov 06, 2015

With the NFP - JOBs data out of the way and the recent rally of the USD: what was overshadowed by the market was the relative correlation of the JP Nikkei Average with the USDJPY. Whereas the market call dated the 26th of October would be in line with the probable surge of the USD. From the price levels of 18900 towards the end of this trading week at 19455. A substantial gain along side the USDJPY. Of course, the call on the USD was the unexpected increase of 271K jobs compared to the previous data of barely 142K that saw a drop on the USD then.

A lot of traders and investors where asking as what happened to the stock market that barely made a move on these reports. However, it is nice to note that having to monitor all three (3) major indices; the JPN225 again, have been over-shadowed simply on the premise that it has become second -fiddle to the China market being the 2nd largest economy since its declaration as such. But for us investor-traders, our first responsibility is to ourselves as investors. By doing our due diligence in trying to be at least one step of the market, in most times as possible. This way we would be able to achieve Alpha trade results by using leverage to equalize risk and maximize full market potential. 

That is also why its equally important to secure and keep trading journals dates, market calls, which could be referred to when the time its called for.

IN FOCUS: JPN225 & USDJPY

NOT JUST FOREX: Stock Indices Positive Tone

ON 4TH QUARTER ENTRY

Anticipating a corrective move on the indices have paid off from the price recovery not only for stocks but for the USD as well. This may turn out to be supported with a slight increase in volatility against a backdrop of recent declines. And with Friday's data above expectations would provide the eminent push for a USD run as against several resistance area seen on a technical angle.

This 4th quarter would be an attempt for a new found price recovery among the major indices with the DOW JONES nearing a 16920 - 17040 range recovery may well take the market by surprise as the USD would increase the likelihood of a synchronize price direction contrary to the norm would be ideal. For a gradual and well pace price recovery would probably be a case when market conditions would occur on the first month of the 4th quarter. A retest of these market high conditions can be seen when prices starts to move towards the North combined with a variable decline on volatility nearing the November month.

For now, expectations of a better jobs data well above would trigger a push for the USD. Any sudden changes on volumes and momentum driven price action may tend to fizzle down towards the closing week. In other words watch for the pull backs on every risk events in the near future.

Thanks for the Vote of Confidence!

FYI - Here are the stats as to MegaTrade101 combined number of our loyal clients and international traders that have been actively following our analysis for the months of June, July and August 2015. And so far have avoided getting washed out from the extreme volatility of the markets while gaining a remarkable experience of timing the market movements before it even occurred.Congrats!

Although, signals were there and proper positioning have simply walked through these price action that have contributed to some positive net gains well within a specific period of time. Lady Luck was again on our side of the market, but will still be glad to make them.

Much Thanks for the vote of confidence. It was your decisions and we are just your trading guide and mentor!

In Search of Actionable Trade Analysis & Setups

Whenever we come across an analysis of the Dow Jones, the major indices or currency pairs, more often we try to absorb or take away the best probable case scenario where we can use those ideas as a basis for an actionable trade setup. 

Although, at most times we can determine whether such analysis tend to be bias or a well balanced information that would add weight on what is already a written fact which every trader already knows. As most analysis are narrative in presentation with full of intelligent information on statistics which can be quite helpful yet are not effectively a good for trade execution. 

What makes our analysis unique for one, is that after a long process of deduction and due diligence in choosing any financial instrument it still boils down to three criteria. First, is the ability to define a relative market potential, secondly, correlated with the equivalent Liquidity on volumes and thirdly, that would eventually lead towards diversified instruments  that meets objectives over a period of variable time.

In some trade cases where speculative positions translates into a market trend potential that would essentially build a fundamental catalyst and in turn transforms into an investors flow of interest that would become a reinforced market trend. This relates closely with currency based trading for liquidity with a combination of foreign currency conversions and Stocks through relative ETFs that can be used as a strategic method of trading and investing. Further discussion to follow.  

Price Action Analysis & Insight: EUR GBP AUD JPY

The positive sequence of USD news, the initial reaction from Janet Yellen's comments, consumer confidence and the recent ISM figures should have pushed the USD above the registered high @80.35 basis point. However, its failure to do so remains,as investors' contrarian sentiments on the USD recovery outweighs the reports. 

The USD Index DXY Spot, have been really sluggish as it now remains in negative territory below the 80.05 benchmark that whipsaw its way lower as of this writing. The market's behavior based simply on Price Action Analysis (PAA) have justified the prevailing market sentiments from its original trend behavior. Which in fact has been a relative short-lived USD rally that has not sustained its ability to push higher.

Price Action Analysis & Insight

Price Action & Market Behavior ll

In recent reports not too friendly for the USD; it still have managed itself for the expected relief recovery contrary to a bias-bearish market sentiment where the USD index have found itself topping-out from its registered daily high @79.70. Close enough for the first stage price level of 80.05/10 initial objective; which have successfully broken-away from its technically oversold condition along with its major foreign counterparts.

Although, price action has been lackluster, as the market participants are again fixated on any possible fresh cue that can be derived from the FOMC report due today. The overall stand as reaching a patched-resolution on the government's partial closure, debt ceiling and the Fed having to scale furhter forward its tapering schedule has made the major market investors shift investable cashflow towards the stock market. Since the expected time-table for Washington politics to again be present by the middle of the first quarter of 2014; regrouping strategy of portfolio diverfication would be in order. Since the closing month for October and opening of the new November month is currently at hand, trade position and price adjustments amongst institutional fund mangers would ertainly take place.

Price Action & Market Behavior ll

Price Action & Market Behavior: DXY GBP EUR JPY & Crosses

In our recent market vew analysis dated the 1st of October we have defined the heavier fundamental factors influencing the foreign exchange market. The price action and market behavior reaction to these issues surrounding the market were carefully studied before and after the fact.

The recent lower opening gap for the USD as measured by its DXY equivalent resulted with a slight corrective move and followed through with a decline reaching @79.62 basis point to this writing. And a similar reacton from the Euro after the ECB remarks have added to the USD decline that pushed the EURUSD @1.3630. The contrary move by Cable pushing back to 1.6160 have finally supported the EURGBP cross price reaction from its support slightly lower @0.8330 and is currently @0.8438 recovery price levels. The closing prices of the DXY and majors are critical as they would provide a glimpse of how the market would move in the weeks ahead. Especially a delay on the NFP report would spark a sudden unexpected move within the market contrary to its present sentiments.

Price Action & Market Behavior

CCY Insight: GBPJPY DXY GBP AUD 09.13

Market talk on Lawrence Summer's nomination initially gave a lift for the USD in the Asian trading session. Although, the market's main concern that has been the real market talk was the Fed's next move on its tapering schedule.

However, market price action has been at bay while Retail Sales and the University of Michigan report figures would affect current market sentiments. In the Asian and early European sessions, the USD index have opened slightly higher @81.60 that reached a daily high @81.73; and currently making its way down back to the 81.35 low. As we made mention that any price recovery would only be short-lived with the general negative bias sentiment for the USD remain in the market.

CCY INSIGHT 0913.13

Opening Market Insight for 8.12

Consistency & Protective Strategies on Effective Trade Positions:

The US Dollar has lost ground across the board for the past four weeks with only a week of recovery seen on the last week of July. As we have perceived that the US debacle is relatively not over yet; unless US retail sales and consumer confidence figures scheduled within the week would essentially provide some lifeline that would potentially give a boost of confidence for the safe haven currency.

Opening Market Insight for 8.12