Major currency movement has been a little more subdued to start the day but the action should pick up soon enough and more so as we look towards North American trading later, following the moves that we saw in overnight trading.
Archives of “Analysis” category
rssStandard Chartered forecast the USD to fall around 7% over the next year
Outlook
- gold
- euro
- AUD & GBP
These eight steps are intended as a guide to the new trader and a reminder to the experienced.
1. Find Your Strength. It is important that the trader determine what type of market, trending or consolidating, best suits their own personality and strength. The best traders stay focused on one or the other and master it.
2. Know Your Market. You should know your market when trading. In other words, know the levels of support/resistance; know how the instrument you trade moves with the general market; know who is likely to be on the other side and what they are thinking; and “the terrain of any market includes the “long-term charts” (140).
3. Prepare Your Order. Know when to get into a trade and why and know when to get out of a trade and why. Just like a secret agent who will “never enter a room without knowing how to get out of it in a hurry” (142).
4. Placing Your Order. Once you have adequately prepared for a trade, it is then necessary to be ready to place the trade when the time is right. Here “patience is the key…you must be able to wait for the market to tell you when the moment is right. Wait for the market to generate the action; don’t force it” (143).
5. Sticking With Your Plan. This is probably the hardest part about trading. Once you enter the battlefield (enter a trade), the emotions of fear, ecstasy, greed, and sheer excitement can then take over and cause you to forget your well prepared plans for entry and exit. You must enter a “Zen-like mental state” where you remain in control of your emotions. Not doing so could spell disaster.
6. Identify When You Are Wrong. “It is crucial to your survival to identify in advance whether your view might be wrong and to determine what price level, when broken, would be in support of the consensus view; therefore, you are building up your ability to defend the occasional probes against you” (145).
7. Holding On To Your Winning Positions. Set a trailing stop when your trade is moving in your direction thereby locking in profits while allowing the trade to work toward its maximum potential. “A trailing stop loss keeps you in the war, keeps you in tune with the war, and, most important, leaves you in full readiness to instantly strike again” (152).
8. Focus On Your Next Trade. This is the most important step and is saved for last. This step simply says to start anew with each new trade. No matter if you won, lost, or broke even on the last trade, the next trade is a new one. “You do indeed need to be starting every single trade fresh and alert without any baggage from the previous encounter” (153).
Eight steps for success; eight goals for every trader.
*Sips tea* #silver $silver ———-This was one more reason why we are Highly Bullish on Silver
UBS S&P 500 target is 3,300 (in about a year’s time)
UBS on the US equity index, say that Q2 of this year will mark the bottom for corporate profits, earnings to now head higher.
- We expect profits to be down 40% in 2Q. However, as we expected, many management teams continued to emphasize that the outlook remains uncertain and is highly contingent on progress containing the coronavirus and additional government stimulus
- Our S&P 500 EPS estimates of USD 122 (-26%) and USD 156 (+28%) for 2020 and 2021, respectively, remain unchanged. Overall, results should help sustain the rally we have seen over the last four months.
- Our June 2021 S&P 500 price target remains 3,300
$Silver: “You ain’t seen nothin’ yet”
Japan has approved a coronavirus drug – dexamethasone
NHK report overnight via Bloomberg
- for the treatment of coronavirus patient
- following the approval of remdesivir in May
USD facing more questions about its status as the primary reserve currency
Here is an item on the US dollar from Bloomberg that may be of interest.
- USD accounts for more than 60% of global reserves
- the most widely used currency for international transactions
- But it risks ceding ground to the euro after European Union leaders agreed on a 750 billion euro stimulus package that enhances the appeal of the shared currency and euro-denominated assets
US Indices end the session mixed.
NASDAQ closes lower for the 1st time in 3 days
US stocks are ending the session mixed.
- The S&P index moved higher close at the highest level since February 21.
- The S&P is up for the 3rd consecutive day
- The NASDAQ index close lower after 2 days of gains
- the Dow industrial average is on a today winning streak
- S&P index up 5.46 points or 0.17% at 3257.30
- NASDAQ index -86.72 points or -0.81% at 10,680.36
- Dow industrial average rose 159.53 points or 0.60% at 2684.40