What have you been trading?

Hi traders! Well it's been one of those months again, every time I'm away the market seems to present itself with the best trading opportunities of the month. Hopefully, you've been catching the moves in the Japanese Yen. Too often I see traders only trading currencies or markets they are used to or have an emotional attachment to. Some of you may say, 'well how do you know the JPY was going to depreciate like that?'. The answer is CORRELATION. Look at every currency against the JPY, the market on a whole is doing exactly the same thing! That type of correlation only presents itself when there is strong momentum and in this instance, where everyone is buying anything against the JPY.

So why is this the case? The Japanese government are spending Y1trillion ($13.5bln) in another round of fresh stimulus to revive the economy. The opposition party LDP have been suggesting they would pursue monetary easing on a scale exceeding that when LDP were in power three years ago. Their leader Abe has also been calling for a 2% inflation target.

Whilst I haven't posted for a while as I've been travelling, there hasn't been anything that has hit my levels. Intra-day trading speaks for itself, follow a strong trending market and wait for a pullback! However, my watchlist for the past month is still the same as I look for long on commodities and stock indices in the run up to the end of the year.

Good luck!