Happy Holidays From Day Trading Forex Live
HAPPY HOLIDAYS to all of our friends and Day Trading Forex Live family members. We wish you a great holiday season and a very prosperous New Year. We will be taking the next week off from the live training rooms and will resume them on January second 2014. We will however be available by email to members so feel free to send any questions you may have especially if you are new. Anything we can do to help speed up your learning curve while trading is down
In an effort to discourage trading today I will not be posting charts or analysis for the EUR/USD or GBP/USD. The fact is with all things considered the week end flows, monthly and yearly flows could easily throw the markets in any direction along with the lower liquidity so even though we may see a set up, exercising patients and discipline is more important and key to a successful trade plan. Please take the day off trading and enjoy this time with your friends and family. Above all enjoy yourself for the holidays.
Having said that I did want to leave you with some interesting articles for the end of the year and of course a Max Keiser episode that our Bitcoin enthusiasts that may be concerned about all the news and recent drop. In short this may be the best sale we see for them and if by chance it does drop again will be a better price rather than a signal to run. The following articles should be educational about what we will be in for next year. Stating with the effects on the Fed token taper along with China quietly trying to do the same. It seems as though they are realizing they have stepped in a big pile of dodo and are trying to get out but I think they may be just as stuck up to the knee as the Fed. That’s the nicest way I could put it.
China Also Tapers, Forced To Promptly Bail Out Money Markets
Overnight we warned that short-to-medium-term money market rates had spiked to record highs (1-Year rate-swaps over 5.06%) and that the PBOC was bravely standing firm on its (lack of) liquidity injections… that didn’t last long.
Despite the PBOC’s veiled ongoing attempts to ‘taper’ its own liquidity provisions, as MNI noted, echoes of the June liquidity crunch were heard again in the Chinese money market Thursday and authorities moved to extend trading amid a surge in rates which quiet injections of funding by the People’s Bank of China failed to stem. Jitters in the Chinese interbank market since the PBOC tried to force deleveraging in June highlights the nervousness of an overstretched banking system that is reliant on the central bank’s largesse to ensure stable operations. Full article link here.
Complete Recap Of Overnight’s Volatile Markets
If yesterday’s price action in the moments following (and preceding) the FOMC announcement was just a little suspicious, with a seemingly endless supply of VIX selling originating as if from nowhere (or perhaps the 9th floor of Liberty 33) the morning after has so far been a snoozer. Perhaps this is to be expected following the third biggest one-day surge in the stock market in the year (1st = Jan 2nd, 2nd = October 10th), or perhaps the market is finally focusing on Bernanke’s tongue in cheek suggestion that the taper may be lowered by $10 billion per month (we disagree as described previously). Or perhaps the creep higher in 10 Year yields, at 2.915% at last check and just shy of the 3.00% psychological level, is finally being noticed. Or perhaps the fact that China, very surprisingly, is also tapering concurrently is finally being appreciated as is the fact that despite all talk of preparedness, developing economies were hardly left unscathed following yesterday’s development. Whatever the reason, the euphoria this morning has “tapered.” Full article link here.
My take on this is the 10yr 3% level is the line in the sand and since its darn close right now they wont be able to keep the token taper going on for long.
Last but not least the yesterday episode of Mad Max
Have a great weekend and again Happy Holidays.