MARKET UPDATE AS 7th Dec 2015
The latter part last week has been very volatile to trade simply because of the big news items from both Europe and the US on Thursday and Friday.
Trading the smaller time frames gave good opportunities on the Major indices and Forex Markets especially if you are lucky enough to have the use of our indicator in your arsenal. Just look at the screen shots below to see how these opportunities presented themselves on the LIVE market on both Thursday and Friday on the Dow.
This is Thursdays 5 Min Chart This is Fridays 5 Minute Chart
A Sell Signal On Thursday at 17727. A profit of over 180 points.
A BUY signal on Friday at 17680.
A Profit of 165 Points at Fridays close.
THE MAJOR INDICES
The Weekly charts of the major indices such as the Dow, FTSE and Dax etc are giving very mixed signals. The Dow looks to be more of a BULL whereas the European indices of the FTSE and the DAX look bearish. We have both the FTSE and DAX giving bearish Outside Vertical Bars whereas the DOW has a BULLISH vertical bar. In situations such as this it is important to be very blinkered and trade what you see in the market you are trading rather than judge your signals based on what another market has been doing. I know it is natural if trading the FTSE you want to be looking at what the DOW is doing etc. There is absolutely nothing wrong with this approach providing you do not base you signals in one market of what you see on another.
I think sooner or later the major indices will get in correlation with each other again and on this understanding either it is the European indices or American are going to change their medium to longer term direction. In the meantime remember just trade what you see in front of you!!
I have a screen shot of the Weekly charts of the DOW, FTSE and Dax where you can see the non correlation clearly.
Both of these currencies made a complete change of direction when the ECB came out with its report last Thursday. The EUR/USD really took off making over a 300 pip move. The GBP/ USD did follow but not to the same extent. It made just over a 100 pip move. Both forex pairs since then have taken a breather and given back some of the original move but as I write these words they still look more BULLISH than BEARISH. The EURUSD looks the stronger. The GBPUSD has today (Monday 7th) went very sideways whereas the EURUSD now looks to be more bullish after its pull back. This can be seen on a 5 min chart using our indicator as the blue bars (buying) have started to reappear as per the screen shot below. The highs of last Thursday on both these currency pairs should be broken to the upside.
If you would like to learn more about our trading methodology and would like to use our proprietary indicator then I urge you to become a member of our trading family (if you are already not one). Our indicator alone helps make great trading decisions but when used in conjunction with our price action methodologies you should find a real difference to your trading success. My email address is firstname.lastname@example.org if you would like to contact me personally.