Trade Ideas

Volatility great for trading, but you must get your timing right

Depending on which way you look at it, these markets are either very dangerous or they offer tremendous swing trading opportunities.If you can get onto the first move and then start riding the swings, that makes life very easy (and profitable). On the other hand, if you miss the first move and then try to jump on mid-stream, trading can be very tricky indeed.
I think these markets are set to continue for some time, based on the ‘volume’ reports I’m getting from prime brokers. Real money flows are exceptionally large and trailing stops from macro players aren’t far behind in terms of size.
And one other thing, actual technical levels won’t work as well in these wild markets but we can still look to technical analysis for directional indications.
Should be an interesting week!

  1. hello sean,

    you wrote that killing 129,50 would bring some upside potential and you would look to sell again in the area of 131, so do you think usdjpy will go further deep, after some correction towards 100, which will be the next big resistance?

    i mean usdjpy is the mean driver of eurjpy, isn’t it?

  2. Generally speaking yes Chris, but not always and not in short term. We are seeing some truely massive flows in the crosses at present and they are driving the ‘leg’ pairs in different directions.
    USD/JPY feels oversold in s/t and uptrend is still strong, so I do expect an upside correction to 100 and lets see what happens then

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