Post FED Decision Update: Active Price Action

Investors and traders have experienced an increase in market volatility with the financial markets in Asia and the US markets. Leading the barrage of news was the FED's refrained from moving a rate increase which was somehow anticipated by most analyst.

The DOW's high reaching 16933 nearest to our target levels of 17000 have manage to pull back and have decline back down to the current 16674 where it came from. A short trading session for the weak have likewise been part of a relative good follow through and lack of volumes to create a continued rally. A similar case transpired with the USD index after making a relatively good price recovery from the 94.85 basis point and managed to pull back lower @94.05 that took a rapid price action after the FED's decision. And this led to a ripple price action effect that lifted the EURO and CABLE to their respective high levels, @1.1460 and @1.5660.

While sentiments of market price action spilled over in Asia with the JPN225 reaching a high @18644 then pulled back lower to its current levels @17840. And to top it off with Brent Oil steady @46.90-47.72 before making a rally @50.34 and with a similar reaction back to the 48.85 levels then pulling back higher to its current price @49.85. Prices will pause within these current levels after a week of price swings in both directions. as it moves forward to the closing of the 3rd quarter 2015.

With that said, prior to FED's decision, the market was poised to find itself walking to a volatile market place where our technical trade setups came through with flying colors for our constituents. As we previously called on our video support "Not Just forex: Price Action Analysis & Market Behavior Based on Correlation". Checkout the link. As these will lead towards the end of the quarter and a probable price recovery on the last quarter of the year. 

https://youtu.be/opXzWP5M1eQ

Correlated Indices, ETFs and Currency Strategies

Cross trading with a touch of Arbitrary Hedging -

In the financial markets, the ideal approach that investors tend to diversify their respective investment portfolio to meet goals or at least achieve a higher degree of return nearest to their financial objectives over a specified period of time. However, at the course of market conditions, certain time frames of exposure does not necessary follow due to changes in market sentiments and a variety of globally interconnected fundamentals that will always drive price action.

Weighing in which among these factors would weigh heavier which would likewise dominate the market place. Whenever these market drivers are in play, wider price ranges in both market direction could be difficult to identify and even to anticipate the session's price changes due to volatility, especially when they are fundamentally driven instruments either in stocks, currency or commodity. Let alone in stocks and commodity, a certain degree of difficulty selecting the right correlated financial instrument would be hard to do. With over 1700 ETFs to choose from would be similar to a novice trader trying to find a needle in a haystack, without the assistance of an experienced mentor /
trading partner is just an example.

However, ETFs are only one of the alternatives investors can consider contrary to the fact that ETFs do have some trading flaws especially so when trading limits and halts certain stocks are concerned. Although, this maybe only be a concern for inexperienced trader / investors not knowing what to do when extreme volatility are present in the market, the likes of Black Monday. That is why, we do encourage to spread investment risk not by stock or currency choices alone but addressing the overall investment portfolio. And at the same time "Capitalizing on Liquidity" that the Foreign Exchange market provides on extreme market volatility only when properly / Timely executed. Without these guidelines the end-results could be financially dangerous.

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Correlated Indices, ETFs and Currency Strategies

Comparative Analysis: #DOW #SP500 #GOLD #DXY #EURGBP #FXCROSSRATE

Comparative Analysis On #DOW #SP500 #GOLD #DXY #EURGBP #FXCROSSRATE 

Check it out!

Dow Jones Industrial Average 

Volatile as it can be!

As of January 12, 2015

ONLY THE BEST FOR YOUR TRADES 2015!

GREAT START FOR THE YEAR!

Exceptonal Times : DOW USD & YEN RELATED CROSSES RISE

CIPHER3 - PRICE ACTION ANALYSIS: 

The #DOW JONES and the #USD (DXY) are outperforming their peers with the recent rally we all have seen just this week alone. Exceptional times do occur when the US manages to come up with its own arsenal (so to speak) and outperforms the rest of the markets.

This has been our stand for sometime and have stayed the course. Our recent market view dated the 12th of September has held true especially with the "CCY Preference" that we have stated. Yen related crosses have likewise outperformed the majors volume and price momentum with the USDJPY taking the lead which has spilled over exceptionally well with the GBPJPY, CHFJPY, SGDJPY respectively.

Aside from Janet Yellen statements on rates and the FED'stance in keeping rates over an extended period, JOBS has been their main focus which has been receiving quite positive reviews contrary to wht other analysts say. However, with increase trading volumes and price momentum; The USD Index ability to move @84.81 high is impressive enough to push USDJPY to its current levels @108.95 to this writing. GBPJPY @178.23, CHFJPY @116.11, SGDJPY @85.75 respectively.

Congratulations! : 5 Trader/Investors who attended the Open Forum yesterday are very happy today with their own trade decision to take up these CCY pairs discussed. Reference to Price action Analysis dated the 12th of September - Insight to the Cross rates stated above. Now that you're ahead , stay ahead! 

Likewise for those that receive our email You are more than welcome!
ONLY THE BEST FOR YOUR TRADES!

Diversify: Trade Positions

On Gold & Equity
After a week of lackluster trading from the huge decline on the USD due to Bernanke's balancing remarks have been reflected in the FX market's ability to move in either directions. As most investors have likewise shifted money flow back to the equities and the precious metals markets.

With the Dow reaching beyond its historical highs @15589.40 have remained bullish supported with equity earnings at record levels after seeing the previous decline @14551.40 last June 24, 2013. And the recent decline of the USDx @80.60 on the week ending June 14, 2013. While, Gold registered its low @1180.19 the following week of June 23. This simple yet effective market scenario do occur, and when all the three major markets made their moves concurrently at the same time with a few interval difference on its time- frame. Surely, a lot of traders have noticed , except to simply overlook such indication of a price reversal can on be made thereafter. In essence, a major market reaction totally opposite was in the making.

Diversify: Trade Positions

Market's ability to react more from Fundamentals!

Currently Weighing fundamentals vs. technicals

The Dow Jones ability to move sharply lower on Tuesday reflects investors real market sentiments as some of the largest multinational companies mixed earnings and with Moody's credit rating downgrades for five of the European regions surrounding Spain have rekindled serious concerns about the slowing global economy.

The ability of the US dollar has firmed as a sign of revival for safe-haven activities have move towards that direction. While the stock markets decline, have redefined that stock market assets becomes a higher risk from soft corporate earnings reports reflected by the major Dow Jones industrial major brand names.

Traditional safe-havens, such as the Japanese yen or the Swiss franc, could serve as an alternative strategy for US investors keeping the dollar in place at these higher levels. The only contrary to this scenario is that Japan is also having more serious difficulties with their very own economic growth.

At the height of the U.S. recession

Euro reacts on Confidence vote!

As the market anticipates a crucial decision for Greece government led by PM Georgios Papandreou will survive as he revamped his cabinet to make certain that a continued support for austerity would be made. That is inspite of the continued strikes and protest against the programs. This has prompted the EURUSD to move higher to 1.4432 and the cross rate on the EURGBP to move back upwards to the 0.8883 high respectively. Yet, the unconvincing rally can only be considered to be a correction from its low; as no other significant momentum build-up for the Euro to move further was indicated. the only exception was the negative figures on existing home sales that added to the USDX to move lower back below the 75.05 near term support price level.

With commercials still dominating the market place, we do expect a continuation of this near-term rally on a daily basis with wider trading ranges that may run out of steam nearing the closing of the month's trading. Although, the FOMC and the EU June 23-24 meeting would be dictating the direction for the market by then leaving a much wider room for volatility to increase significantly.

And even the precious metals and stocks have been the beneficiaries of this continued market condition after experiencing a roller coaster ride from the past week's trading. With Gold prices back up at the USD1550.00 levels from a low at USD1510.45 and the Dow Jones at the 12190.00 levels.