Bond Market Update
Although the bond market has been illiquid and somewhat untradeable given the QE from central banks, it now is time to focus on this market.
Although the bond market has been illiquid and somewhat untradeable given the QE from central banks, it now is time to focus on this market.
Great expectations was a classic novel following the growth of a poor child and his trials and tribulations to find success in his life. Fabulous story.
ad news out of Europe, Germany in particular, makes two potentially profitable outcomes significantly more likely. Firstly, the European Central Bank will be more flexible in its efforts to keep Greece in the Eurozone.
As the currency markets pause ahead of the monthly Non Farm Payroll release due later, I thought it would be a good time to revisit the weekly futures charts for some of the major currency pairs, and to step back a little, following a week of significant news items around the world. This helps to contextualize the NFP data, which whilst important, is simply another release in the economic calendar.
There are so many trading maxims it’s often hard to ignore them, but there are two that spring to mind considering the daily chart for the Emini NQ this morning.
Yesterday the YM E-mini index future delivered a masterclass in trading what you see, and not what you think. Trading with an opinion is one of the most destructive approaches to the market – just ask the euro bears who have been shorting the single currency for years. All to no avail.
With markets having been given a more or less clear roadmap for the future of QE, and so removing a degree of uncertainty, it now only remains for us to monitor closely our benchmark charts, namely the USD index and the VIX , whilst keeping a close watch on price action and volume.
This week was always going to be a tricky one for both traders and investors, with the market’s primary focus being the FOMC meeting on Wednesday. The meeting at which the FED is likely to signal the beginning of the end of its bond buying program. Well, that’s the theory anyway, but given the less that stellar NFP data, this is far from certain.