Originally published to clients back on July 24, 2015
Traders, a couple of thoughts here as we hit the half-way mark of 'Summer Trading'.
- First - please remember it is Summer. For clients who might be new to the trading world - or perhaps simply have not gained enough market perspective - keep in mind that just because markets are open does not mean that there are always trading opportunities.
- Trading opportunities require many things - at minimum you need trends, volatility (i.e. range expansion) and participants who give a care. During the Summer - players who influence the markets simply don't care - thus trends and volatility are in short supply. It seems like only rank amateurs mistakenly care
- Yes, I feel strongly that the Dollar Index (DXC) is shaping up to make a push higher but timing is key. Unless prices make a nice thrust higher, we run the risk of getting long and simply seeing prices move sideways or worse, moving lower because the correction is not complete. (this has turned out to be the case - sideways chop)
- Witness the early action in EUR/USD, USD/CHF - both pairs started to move lower/higher respectively but since then the momentum has simply died. I suspect that this will be the end of today's move....traders are nearly wrapped up in London and NY traders will lose interest 10-minutes ago.
- Trading is a marathon; not a sprint. If you are gauging your trading success or experience with my service based on trade frequency and/or excitement...pack your bags - you are doomed. I trade to win; not to be entertained.
- If you think about your trading as being akin to a sharpshooter (I know this may not be PC...sorry, get over it) you will feel far more comfortable sitting on your hands.
Stay tuned for updates - when needed - and don't forget September is just over a month away. September always brings a far more robust trading environment.
That is not to say that there will not be trades between now and then, but bear in mind, selectivity is paramount.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.