Automated trade completed the first 6 months of 2010 in total control, and sent the S/P equity markets to down to test October 2009 lows, erasing all gains for the year as ravaged investors entrenched in traditional portfolios once again sit and wonder what on earth is going on.
The reality is that forex markets have hedged the moves, both long and short, and FX trader has once again proven that it has absolutely no peers in regard to being an un-manipulated liquid asset class that offers protection in an investment world that poses more questions than answers most days.
TheLFB trade desk was quiet in June, as respect was paid to H1 book balancing, with enough respect paid to the ravages of High Frequency Trading that only rock-solid looking set-ups were considered in the last week of trade. That is all over, as the markets start H2 and Q3 trade with a clean sheet that allows flexibility in what is considered and eventually taken as signals.
The trade desk has a dual-role responsibility in servicing both retail investor and profession traders and trade desks, and as such has to set a standard for all that will not take chances without good reason, and that will limit exposure if markets are not aligned.
With that being said, it signal flows will very likely get back to the average 3-4 signals a day very quickly, and the trade team can start to build on the My FX Book results that showed rock-solid results for all level of clients in June.
The regional economic stories that are unfolding are starting to impact major pair direction, with each day bringing a reason for one pair or another to move. The forex market however is not moving en-bloc, instead it is building positions based on the historical cornerstones that have been ignored since the credit-crisis unfolded; regional growth and regional interest rate differentials.
There has been only short-risk movement in global markets ahead of three days of red-flag economic releases that start in earnest with U.S. ADP private-sector jobs numbers, and U.S. oil inventory updates. It seems highly unlikely that too much price action will unfold on the last trading session of the quarter and the half-year, and if anything it may favor the long side of equities in an over-sold bounce.
Eur/Usd is oscillating around the 1.2250 area after catching bids in reaction to E.U. banking stress test results that were poistive overall, while Gbp/Usd holds support at the 100-day SMA as traders await a long break that holds on a 30-minute chart through 1.5075. Aud/Usd needs to break higher through 0.8600 to signal long intentions, in-line with Usd/Cad holding below 1.0450. Usd/Jpy is consolidating at 88.50.
At the same time that forex pairs retain their short-Usd trends, global equity markets are starting to lose their long trends, as all suffer from very mixed 4-hour chart momentum reads. The speculative interest will stay in cash it seems, at least until the results from the first half of 2010 are booked.
New! As from Jun 01 10 the signals posted to clients each day will be inclusive of any Trade Plan that the trade team sees as having the potential to move.
TheLFB Signal output to clients has been registered with MyFXBook (detail below) so that clients can track and monitor movement in real time.
The daily flow of Signals cover six major pairs, plus Eur/Jpy and Gbp/Jpy. They are generated each day in response to specific global market set-ups that follow the ebbs and flows of each 24 hour global trading period. Signals come with guidelines and email updates.
Trade Signals and Trade Plans are professionally formatted for member and trade desk use, they are designed for all skill set levels to provide a structure to start the global market trading day.
Disclosure: No Open Position