How to See the Markets?

Daily Analysis - 05/04/2018

How Markets Stand Today

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The contexts are radically different but the question is utterly germane because we are at an inflection point in this now two month old stock market rollercoaster. The US closed positively, the Asian markets likewise and the European markets all opened positively. What, indeed is to be done? In such turbulent trading waters we must trade only the surest, strongly trending assets and avoid the volatile difficult to predict assets.

Sugar Trending Low


Sugar is a good example of the strongly trending asset type mentioned above. It has been trending lower since early October of 2016. Not ever correcting in the technical sense. It did move in a range from June 2017 to January 2018 only to continue its steady decline. This is the type of trade one enters in such turbulent times. It is strong, persistent and reliable. We set out profit exit points today at between 11.91 and 11.58 with stop losses between 12.51 and 12.88. This trade is good for the near to long term.

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DAX Rises to the Occasion


This is a short term trade only as the stock market indices are the very essences of the volatility of which we refer and of which the market is deeply fearful. Nonetheless, it is up and it is a good trading opportunity.  We will exit our long positions between 12143 and 12196 with corresponding stop loss point between 12075 and 12030. The idea is clear if thin: Eurozone traders are, as is their wont, to follow on form the Asian markets, who in turn take their cue from the US market from the previous day. It is a well understood trading phenomenon and one that is reliable. DAX UP for no more than hourly trading only.

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Turkish Lira


Another strong, reliable and very persistent trade the USDTRY long position is good for the hour, day, week and month. The chart is truly a beautiful sight to these traders’ eyes because it is indeed very steep and has been in train for well over 9 years. It is a simple idea to grasp too because the causes are clear and understandable. Turkey has become dominated by a semi dictator. Paranoid, brutal, ruthless and manipulative of his own people. He has fueled a larger proportion  of the nation’s growth with what has up until recently, cheap foreign debt which is in the process of turning more expensive as US interest rates rise. The currency and the nation are exposed to the merciless judgement of the capital markets. We to take advantage of this exposure to continue to trade the pair up and in so doing profit from the folly that is Turkey today.

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