After the open we’re seeing strong anti-risk in the fringe cross pairs (NZL, AUD, etc.) yet also seeing strong EUR and weak USD (protending relatively favorable risk enviro). What is dominating trade this morning however is the Strong Yen (was mixed pre-open, now strong). This is presently driving the S&P 500 down. I am looking for a Yen reversal (weakening) as an opportunity to pick up binary option calls on my favorites, DIA and SPY – staying out until I see a S&P 500 bottom combined with peak in VIX and Yen.
Forex Trading Action Reversal
Looks like the market turned around 1:30pm, were you paying attention? I’m normally one to setup trades in advance, set trades based on various parameters once I own securities – I’ve got to start setting them to act to go long positions too. I would be able to react a little faster. Just sharing that simple idea with you. How that relates to today’s activity would have been to set my long position call option trade trigger on concurrent turnarounds in the Yen (weaker) combined with CAD, AUD, and NZL (stronger). Setting an auto trade trigger improves reaction time. Combine those triggers with trailing sell orders (with the reverse conditions) and you can afford to risk stepping away from your monitor long enough to get a coke or go to the bathroom.. know what I mean?
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The Beauty of Day Trading Using Forex Market Forecasting
One of the great things about using forex market forecasting to guide your day trading picks is that even if you’re late getting in on a move in the stock market or options trade – the up to date forex market position tells you whether the market movement you have been seeking has room to grow or will wither. Today has been yet another example of this phenomena. Even with a late call of the turnaround at ~1:30pm today (I was away from trading desk) the forex market still said S&P 500 would continue its rise. I wrote about it to readers a good 20+ minutes later than that – and even then there was still enough time to pick up a binary options call and get enough of a rise to create our september 2009 binary hedge position later. It wouldn’t have been the widest goldilocks position in the world, but it was still possible. As of 3:05pm EDT forex market still calling for market to rise so it isn’t time to pick up the binary put option yet – but as always we’re watching it like a hawk to get it right (eds note: we’re seeing a drop related to the finance bill passing the Senate moments ago – and the beauty of it is we didn’t see much movement in the forex market and are watching S&P 500 rally off the “news drop” – takeaway? forex market is more important to S&P 500 than US Congress).
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