The surprise RBA rate cut from 3.5% to 3.25% weighed heavily on the Australian Dollar. This had a large impact on cross trades, as the AUD was dumped across the board. All eyes are now on today's ADP, Thursday's ISM services and Friday's NFP. Personally, I'm flat until I can see how to position myself for the last quarter. Of course, we always follow price action first and foremost but all this has been telling us for the past week is the market is going sideways. With ongoing fears surrounding China, Greece's Troika deal and whether or not Spain will ask for a bailout and the Fed's QE3 programme the economic climate is somewhat mixed. Most hedge funds have been reported to be flat whilst a theme presents itself. In fact 70% posted a loss last month. It's a good thing you read these posts and understand capital preservation and the reasons it is important. To name a few: compounding, psychology and reward:risk ratios.
It's important to remember we're at the beginning of the month and we still have 3 weeks of trading to go! Stay disciplined.
Of course, if any trades come off interest I shall let you know. In the meantime, for intra-day traders it's just about looking at previous day's highs and lows as levels of support and resistance.
Good luck!
Thank you, Jitan, I have been enjoying your posts recently, you're good at steadying the ship! The mix of specific technical insight, psychology and fundamentals as well as being pretty busy is what makes this blog stand out for me.
ReplyDeleteYes, the RBA cut yesterday took out my EUR/AUD short trade for a small profit, but it also helped my AUD/CAD short IG hit TP in record time, so overall it was a good start to the week. I won't hold overnight again until next week, given the market and NFP this week. Intraday only until then for me. Thanks for the blog, keep up the good work! Kind regards, Piers
Thanks Piers, your comments are always appreciated.
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