Tenured traders look again to currency potential
Last-minute Wall Street trading created frantic activity in AAPL as the NASDAQ’s Special Rebalance program, which was designed to reduce the waiting and impact of Apple's shares on the NASDAQ 100 from 20.5% to 12.3%, took effect. The moves in Apple were dramatic, as the intraday $7.20 move higher reversed, and shares dropped $4 the last 12 minutes of trade.
There were 35.9 million shares traded for the day, which is almost double the daily average. In the aftermarket party AAPL added 8.3 million more share transactions, and sets up a potential wild ride in trading this week. The US Friday close created huge anticipation of what may be to come in the first trading week of May, which will absorb a raft of earnings reports, and the US nonfarm payroll release.
Traders will be closely monitoring the moves in Amazon.com (NASDAQ:AMZN) this week, which rallied to a new high following a solid beat on earnings forecast. There was also activity in Exxon Mobil (NYSE:XOM) which posted $11 billion in quarterly profit that will likely garner further attention during the course of the coming week. On the opposite end of AAPL and AMZN activity, Research In Motion (RIMM) saw aggressive moves lower after the maker of BlackBerry devices lowered its profit forecasts, which is something that could weigh on technology ETF valuations.
For traders and investors who are not willing to wait for Wall Street to open at 9.30 AM on Monday to be able to participate in the reaction to last week’s trade, it should be noted that any move lower in global equity trade will be likely replicated in a subsequent move in Aud/Usd. The Australian dollar has been highly correlated to S&P 500 futures contract trade, as can be seen in the charts below, and is accessible as a 24-hour a day tradable currency pair that allows clients the use of margin to reduce their cash exposure to any potential trade.
S&P 500 Futures Contract (Daily Chart)
Aud/Usd Tracking S&P 500 Moves (Daily Chart)
With earnings season in full flight, trading activity and subsequent opportunities to take advantage of TheLFB’s signals and alerts will increase, with the only proverbial fly in the ointment continuing to be low-volume activity that is creating some volatile intraday reversals. In the current price-extended and low-volume environment traders will be looking to bank early and often, and to leave only small amounts of exposure out there once initial targets have been hit.
Introduction To Forex, Futures, and New-Generation Global Market Analysis
Making use of high-liquidity, 24-hour currency trade, that can be transacted with little cash exposure and no day-trading restrictions, is becoming more and more popular with traders and investors looking for a way to get ahead of the cash market game.
Whichever way the S&P 500 market chooses trade on Monday, and whatever happens as a consequence of Asian and European market sentiment, TheLFB signal and alert service clients will be made aware of what is unfolding, and more importantly how to capture the potential ahead of the cash market open.