Category Archives: Yen

Beginning of a Larger Move, or Already Overdone – Bonds ZB

Written By:  Pauly @SPZ_Trader

Friday’s continued sell-off in the bond market caught the attention of all traders no matter your trading vehicle of choice.  Yes, Virginia the bond market’s tentacles are quite lengthy.

The sell-off started about a week ago with the disappointing action following a weaker that expected Non-Farm payroll report (151k, coupled with .1 wage-gain growth).  The bonds spent the early part of this past week retracing NFP Friday losses, and briefly eclipsed those highs perhaps in anticipation of a little more juice (Quantitative Easing) from Mssr Draghi at Thursday’s European Central Bank meeting.  Well, Draghi did not provide what the market had hoped for; at the very least extension of QE beyond March 2017. Most realize the ECB is handcuffed when it comes to available assets to purchase, so the market was counting on a definitive extension of the program. Bunds felt the impact and summarily Bonds too.

read more

Why Technical Traders Need to Understand Fundamentals

  

Today we had a bearish technical look in both Yen and Gold. Does that mean that we immediately step in and short it? The answer is no. We watch the action and understand the theme of the day. We had a couple of themes to watch for in both of these markets. The first theme was that the Yen has been moving well in opposite correlation of the Dollar, so we watched the Dollar to see if it was holding our support (which would indicate possible weakness in the Yen).

Gold hit our top level of resistance at 1340 and had MACD divergence on the highs. Therefore we had multiple technical reasons to short Gold, but we wanted to see how the market responded on our short term charts for confirmation.

read more

All 3 Confirmations Line up in Euro – Trade Setups 6.23.16

In this mornings brief to our traders my focus was on potential trade scenarios in Crude Oil, Euro, and Yen.  The Euro was the one that ended up giving us the strongest signal to trade off of.

As I have mentioned many times in the past, the markets that have the strongest confirmations are the ones that I focus my energy on.  Confirmations for us come in forms of moving averages, MACD or Stochastic Divergence, and our number one confirmation is when our short term beacon strategy lines up with our 60 minute beacon levels.

read more