Wednesday has some high impact news for the $

Wednesday has some high impact news for the $

Hi Guys, hope all had a great weekend.
The Stock Markets as I am sure you know have been battered globally over the last week or so.
The last 4 or 5 trading days in particular have had a huge amount of “whipsaw” as investors attempted to minimise their risk or simply get out of positions fearing a Global Crash.

History lesson
2000 – crash.
8 years later.
2008 – crash.
8 years later.
2016 first major stock market pull-back
2018 – Are we overdue a crash ?
If history is to repeat itself then the answer to that is yes.

The U.S $ has failed in its attempts to climb the wall mentioned in recent posts. It is still in a position to have another go at it but from a T/A standpoint it isn’t looking too good in my opinion and so if it were to fail again it may just slip back into the downtrend that started over a year ago.  But again being at a pivotal level right now I need to become convinced one way or the other before I can begin to form a view.
Things are gonna get particularly “choppy” for a while as it makes up its mind and so needless to say trading $ based pairings will be volatile and that’s without even taking into consideration the opposing currency.

Today I reckon will be a little quiet especially Yen-wise as Japan is on holiday.  Tomorrow will be interesting around 09:30 for the Pound and Wednesday has some high impact news for the $.   I’ll be keeping my powder dry mostly  until such times as Brexit materialises further (TM lays out plans over the next few weeks), the $ makes up its mind and stock markets calm down a bit.

If you don’t have a view, you don’t have a clue.
And if you don’t have a clue then you just don’t do.
And right now I am not sure.

Have a great week guys and remember less trading does not mean less at the end of the month. Traders need to accept there are times like these and as the financial market winds blow we have to adjust our sails in order to continue going forwards.

Clive

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Categories: Guest Writers, Viewpoint

About Author

Clive Arneil

Clive Arneil worked for major brokers for over 20 years trading most instruments in the Foreign Exchange markets as well as Derivatives. Brokered deals on behalf of some of the worlds largest banks including Barclays, Citibank, UBS, Nat West and the Bank of England. Worked mainly in the UK but also in Switzerland, Germany and the U.S. Retired from the Money Market at the age of 40 and worked as a financial data feed specialist supplying market data to Banks, Brokers and Spread-Betting companies. Still trading and teaching people the skills required to master today’s volatile markets.