Cross Trading SPOT & FUTURES as an Alternative Strategy

The US NFP figures was the main catalyst for the currency market's volatility that led a substantial price recovery for #CABLE, #EURO and the Japanese #YEN. As mentioned, the 'healthy' declines were a preemptive signal that there was something the market place were brewing heading towards the JOBS data last Friday.

Understanding the practical way of 'Cross Trading' SPOT & FUTURES may well be an alternate strategy that needs to have a deeper analysis for a tactical investor / trader. Although, the JOBS figure were a fundamental in nature, the price swing on CABLE were quite encouraging as it marked a high @1.4580 with a  pullback again @1.4370 seen at the Monday Asian session. The similarity of price movements across the board is expected after a dramatic price swing after the Labor department's surprise data.

With that said, the spread between alternating US Dollar Futures contracts shows the resiliency of #DXU16 (Jun) compared with #DXZ16 (Dec) as a spread that  range led the market into a decline, as the FED's June hikes would be pushed out towards July. Uncertainty has again prevailed, as the market awaits for FED Chair Janet Yellen comments this week.

Meanwhile, the SP500 remains at the higher band of the range with the  #SPY also remained steady. The obvious higher volumes last Friday would serve as the initial support for a price recovery with the position adjustments derived from the rapid post NFP price decline that led the European majors to simply react from such rapid action.

Remaining EURO & CABLE Short-positions caught at the low band of the previous decline had to struggle ahead of the USD decline which has been led by them rather than a USD related move. This can be seen with the figures in the COT Volume & Open Interest report post NFP #'s. However, it still remains that price swings would be confined within a wide trading range for the coming days leading towards Janet Yellen. 

ONLY ONE CHOICE TO MAKE.. The Steam or the Flow?

Or be smart & wait when the market moves and say...we knew that would happen!

The Market Pot's Brewing! Will you position with the steam or flow with the spill? #SP500 may take its lid off but not without a fight! As secular bulls are just waiting to pounce on every probability that momentum builds as market volatility increase from any positive event risk.

No spoilers here can be seen so far ahead! Waiting for the jobs data which would direct the flow of prices towards the end of the week's trading and a glimpse of what's expected thereafter.
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MARKET INSIGHT: #Equity #Indices, #Forex, #Futures / #Options & #ETFs

#USDJPY as of 5.30.16 Asia

While Equities are still playing footsie, so to speak; with the Memorial day holiday along London, the Asian market has taken the lid as mentioned that took the #USD beyond the 95.50 levels. This move gave some encouraging marks for the #USDJPY to trade a daily high @111.38 in the earlier session to this writing. When the time comes USDJPY will trade nearest to the 115.50 levels which may seem to be quite some distance from the current levels. For as long as the closing week's prices stays relatively weak for the JPY with the assistance of the NK225 gaining some ground in the Asian closing will surely be good support.

The critical closing price for the week post ECB & NFP will dictate the price action. However, the continuing strength to take advantage of is geared towards what a tactical investor / trader can do while the USD is outperforming the stock indices. With the probable exception of the SP500 which have shown some encouraging prices nearer to the 2100.00 levels being watched.

Fortunate for us to be trading with a spread market from Spot FX including currency options have given our strategy the market edge of trading a carry-over trade position on the DXU2016 Futures along side the #UUP ETF as a way to leverage the possible potential of an established trend for the past 4 to 5 weeks now.  With the expiration of the May 2016 contract; the obvious target of Sept futures  #DXU 2016 objective would shift and the new contract #DXZ2016 (Dec) month as it moves nearer shall carry the FED's rate hikes moving forward. We'll comeback to this excerpt by the 4th quarter of the year.

NOT JUST FOREX: It takes three (3) aligned Indices to tango!

@The_CCY_Corner by Megatrade101.com

Loch Ness Formation

@megatrade101: Market Call: #USD Key Driver for Major Indices Direction & Renew Higher Trend with Volume - Momentum signals would be the game changer!

Renew Market Call as of April 13, 2016.

Just waiting! It takes three (3) aligned Indices for a game changing move that would surprise the market.

SPDR SP500 - SPY 4.2816  
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