Daily Analysis - 13/04/2018
Like most serious traders, we are obsessed about the news. It drives trader’s thoughts and emotions and those thoughts and emotions drive the markets. When talk of war and devastation fill our hearts and minds we withdraw our hard earned capital form markets that are likely to be buffeted by the winds war. When Mr. Zuckerberg testifies on the first day of his grilling by the Senators in a way that inspires confidence in his abilities to manage the firm in the interests of the 2 billion people availing themselves of its services the stock rallied by over 4.5 % On the second day of testimony, after the Senators had taken of their gloves and started acting like the well informed shark like lawyers they all are, they took the young CEO over the coals. Made him sweat. The stock fell by 1 and ½ %. For those wondering if is possible to make money from following the news we say, it is one of the best way to trade in the markets. And so Ladies and Gentlemen. Thank whoever it is you worship that this week has come to a blessed end, if, that is, you don’t like whiplash speed rollercoasters. Get off the car, settle into your weekend reading mode and try to understand what has gone on this past week and try to set your mind to making money in the markets next week. It is not any more likely than the week past to be calmer or easier. Trade with Confidence.
Ah yes. The Aussie/Kiwi trade. How can you not love a trade this smooth? Consistent, reliable and turns a nice profit. We love this pair. Every day of the week. Every week of the month for the last 2 and ½ months. Today we are looking to take our profits out of our long positions, which form quite regularly in the long term/secular downtrend occurring in the pair since late January. Our take profits will be placed between 1.056 – 1.057 with protective stops between 1.053 – 1.052.
Silver a proxy for us very often in place of Gold. It moves very similarly and cost a fraction of the price of Gold to trade. Gold has attributes that complicate its trading such as having notions of “safe haven” attached to it. Silver is not so encumbered. Silver has been trading in a range since early February. This means that it makes predictable swings from an upper boundary price level to a lower bounded one. We like this situation because it is calmer than faster bear or bull markets. We talk about risk in these articles all of time. We have to. It is part of the world we inhabit and earn the money we make to buy milk for our children. That however doesn’t mean we like risk. We avoid it wherever we can find shelter from the unknown, which is risk. The probability of the unexpected happening as we like to say. This is a solid reliable trade we have been running for over two months now. Today we will seek profit from the short side of the movement between 16.420 – 16.345 and place our stop order between 16.565 – 16.605.
This is a short term trade only hourly to the end of the trading day only. Lord knows what will happen in these turbulent markets. The panic of the last 10 weeks has played itself out on the stock markets of the world principally. The aforementioned rollercoaster ran straight through the worlds’ stock exchanges. No more dramatically than the DAX. So, when it shows strong signs of shaking off some of that battering by attracting cash back in, which of course drives the valuation of the index up, we will participate. With a small allocation of our capital and not for a long period of time, but buy in we will. We try to understand the risk we engender. We don’t embrace it with affection. The DAX will show profits on the long side today with profits sought at between 12459 – 12476 and our protective stops set between 12440 – 12417.
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