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Global Trade Desk- Repeatable Trade Patterns Signal Danger

Daily Client Note

Global Market Review

Repeatable Trade Patterns Signal Danger

Most asset classes have flat-lined on Tuesday, with Daily chart Moving Average price points now in play.  Global debt issues dominate sentiment.

Credit markets are signaling danger, with SovX (Sovereign Credit Default Swaps) now extremely volatile, and S& Futures back to 1.5% intra-day moves.

Fixed income markets are revealing a 2008 pattern that shows inter-bank credit is not only expensive, it is becoming hard to find.

The consequences may be contained until the Federal Reserve 14:00 ET Beige Book release, which will reveal regional Fed outlooks.

With Q2 earnings season underway, and the US Trade Balance hitting $50B which will cut Q2 GDP numbers, the surreal period of trade continues.

Traded markets may have no choice but to consolidate recent NFP moves, but it will take a herculean manipulation effort to now hold things steady.

Our Trade Plans once again dominated global market moves, with the six major pairs generating solid results. Clients were reminded to place pending orders.

The Trade Desk will be monitoring the markets 24 hours a day and have switched our algorithms to mid-term 4-hour charts.

Our methodology is the same, and we are looking to capture intra-day moves with Trade Plan pending orders, and using 4-H Trade Signals for bigger plays.

Making use of near-term volatility with Trade Plans, and waiting patiently for mid-term potential in Trade Signals, will set us up well for the Summer.