Behind the USD Decline Update - What's Next?

US DOLLAR INDEX (DXY)
As of 2.05.16

The market's volatility has kept investors, traders and analysts on their toes has price swings have been fixated on stocks and oil market price swings. Nonetheless, the FED's remarks on global uncertainty was the main catalyst that triggered the initial decline which was followed through with enough momentum for the USD to set a "NEW LOW" @96.25 as of the closing week of Feb. 05, 2016.

It is a fair assessment that the registered high of 2015 for the US Dollar Index (DXY) is well in place. Unless a renewed confidence would be clear to the market for a continuing rate increase; this price level would be the benchmark for the high on the USD. Although, a slight increase of 53% reported last Friday can well be sustained if and whenever the FED would do so in their next three meetings. Then the continued strength of the USD may likewise add pressure to the US economy.

Market Insight: Behind the Move - What's Next? Page 2 Update

Quadruple Witching Adds to DOW & SP500 Decline

A 2nd Retest of the DOW JONES Industrial & the SP500 Decline will ripple its price action in the Asian market as probable contagion can finally happen by the coming week as we draw closer towards the end of the year's trading. This has been ignored by other traders not quite familiar with and how to navigate correlation with other markets.

Being a quadruple witching day with the expiration date of various stock index futures, stock index options, stock options and single stock futures are putting weight on the stock prices. This is on top of the price pressure from Oil price decline and a delayed reaction from the FED's actions that saw a 'relief rally' a few days ago as we stated in the previous analysis was just a temporary reaction from the FED's announcement.

Dow Jones Industrial Average Overlay SP500
Quadruple Witching Adds to DOW & SP500 Decline

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

Access to Primary Markets for Asian Main-Street Investors

A MUST! The Dow Jones Industrial Average (DJIA) has declined equivalent to 1.26% as of this writing; due to the sell off in small-cap stocks and a very disappointing results from the big store WalMart. A triple digit decline more than 200.00 would definitely be another blow to Asian stock markets by the time it opens.

Under these circumstances; what can main-street investors in Asia do to take precautionary measures and strategies knowing that the day markets open that a huge decline would be expected? As we know that Asian stocks do mimic the major US markets; and by having access to both primary and secondary markets should be made available for these investors to at least arbitrary hedge and/or be advice by their respective brokers as to how their accounts could be protected whenever such movements are made while their respective markets are closed.

Stocks / Equities market advisers and companies do have these services available to them as a company. But only huge qualified investors who happen to have their own professional managers would be able to take advantage of these movements even before the next opening trading sessions in Asia. These are the fiduciary duties and responsibilities that should be managed, so main street investors would have a level playing field when such volatility occurs. Please seek advice and protect the investment funds managed in your behalf, so you may have access to strategies from other markets to level your playing field.

Not Just Forex lll - ProShares Ultra Dow30 (DDM) Price Update

UPDATE: Pro Shares Ultra Dow30 (DDM) price as of May 11, 2014 @117.08 from average trade position as of April 20, 2014 @113.17 SP

Link:  Not Just Forex: