G’day Surfers – is there a Doctor in the house to check the Market’s pulse?
I think the less said about yesterday’s market – the better! Outside of a couple of news induced spikes, the Market completely lacked liquidity and was untradeable. We did however, notice 3 opportunities to trade the break to Daily Pivot that never materialised. Order #1 simply timed out. Order #2 had passed it’s entry point by the time our signal was sent (fortunately because the very small stake invested, would have been lost) and our records will indicate the loss at minimum stake (as called). Order #3 was an attempt to be free trading prior to the upcoming High Impact News but no entry prior to the news so under our strategy, order was cancelled before the release.
The only aspect of our charts that has changed in 24hrs, is that the consolidation has continued in a very tight range. The News spike of yesterday has produced a decent Double Bottom #1 at a decent (final) Support level: http://clip2net.com/s/4Ova08 . The potential for reversal of the Bearish Trend is there, but so is the FEAR evoked by the Cyprus Crisis. As per yesterday, we need to factor that Fear into our Risk by reducing our stakes to the bare minimum. The Trend is still Bearish of course and the safe way to trade the market currently – is NOT to trade it. My bias is absolutely Neutral until I see confirmation of a break
The Day Ahead
I’m not saying I won’t enter the market today because as always – if a setup arrives – we trade. I will say that it will need to be a good one however and even then, my investment will be very small. It’s a 50/50 call for mine in a very cautious market. Proceed with caution.
High Impact News
|3:00pm||USD||Pending Home Sales m/m|
Watchful Wednesday guys.