A NEW YEAR! - So the Fed event risk has come and gone and where are we? Well, for now, I think we need to be on vacation! It's time to pack it in for the year. I'm not sure what opportunities will present from now through the second week in January, and I'm not sure it is the best time to be trading. My recommendation is to sit back and take the time to map out a new plan for 2015. If 2014 went well, think about how you can make 2015 even better. If 2014 was a financial loss, think about how you will turn 2015 into a profit. The best thing about the new year is that it is NEW! Fresh start and opportunity to build something special with a clean slate. So start thinking about the year ahead. Start planning ahead and start thinking about where you think the market may be headed over the coming months rather than coming days. Let this be a guide for your trading and let this also serve as the foundation for your trading over the next twelve months.
THE OUTLOOK - From my perspective, I will be looking for opportunities to be long the US Dollar. As much as the Buck has performed well this year, there is still plenty of room for additional upside as the Fed starts to raise rates...whenever that happens. I am holding my AUDNZD and Oil long, and will be curious to see how much longer this EURCHF trade will hover above 1.2000. I will also be looking to continue to build into an equity short. But with the US Dollar long trade and equity short, I will wait. When the US Dollar sells off for a good bit, I will then look to get long, and when equities rally, I will look to sell. No sooner. But if anything does present in the coming days, I will of course be sure to let you all know. The Trade Journal has performed well since inception in August, and I am looking forward to building on the track record in 2015.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.