Trump D = Volatility?
President-Elect Trump. D created market volatility with his speech on 12 Jan 2017, 12:00 am (SGT). For example, his comment on Pharmaceutical sector had caused health-care stocks to tumble. It also caused USD to spike both ways, first up then down.
What bothers the market is the uncertainties about newly-elected Trump D and his future speech. People aren’t sure what to expect next either.
Volatility and how this created an unfair advantage in The Alien Room
Many traders have a mindset of ‘It’s the Volatility that kills you’ however this Volatility gave us double-edge in trading.
We are good at finding important levels that identified turning points in the market, like how we identified these levels and made 1000 pips from GBP Flash Crash.
Case Study of our recent trade in USD
As pointed out previously in this article, the US Dollar Index (DXY) hit a very strong resistance 103 then came down to strong support level 101. We suspected a correction to take place in USD and thus traded NZDUSD (Long) and USDJPY (Short).
If one expects Trump is causing high volatility in the market and it’s here to stay, we can take advantage of these key levels and apply them to trade management (set as stop loss or target profit level).
Trade idea on USDJPY posted in The Alien Room
In the case of USDJPY, Binni and team has identified a strong resistance at 116.80 and 116.40, strong support at 114.50
Most of us have gotten (including Binni) at the break-even point, while others took a slight loss in USDJPY. However, some of our students kept their original sell limit order at 116.80 and made 200 pips when the price spiked down to 114.50.
Congrats to those who kept their original entry to sell at 116.80:
Trades Idea Forming In The Alien Room
We might be seeing,
Possibility 1: Market taking profit in US dollars as they lose confidence of Trump.
DXY key support 101.20 and 100.30, if 100 is broken, then it’s a wash and rinse of these highs.
Possibility 2: Possible Up in Gold as Market is buying into safe haven
Tiong Hum wrote an article here on Gold, Xauusd. Read here.
— Soh tiong hum (@Sohtionghum) January 12, 2017
Possibility 3. JPY to correct, to reverse from weakness to strength as investors unload their USD
Binni and her team will be planning into JPY trades, depending on the price movement in Asia Zone
— TerraSeeds FX Tflow® (@terraseeds) January 12, 2017
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