Jan
22
Today Bernanke dropped the bomb of the year: a massive -and unannounced!- interest rate cut of 0.75%. It appears to me that the FED is reacting in panic to the recent nose-dive the equity markets are taking all around the globe. In fact, the problem is not that the Dow Jones has dropped a 15% in the last three month - the problem is that we might be facing a deep US recession at a structural level, and with today’s decision the FED has acknowledged it as an actual reality, or at least as an actual probability.
You can read more about it on this article featured by the Wall Street Journal.
As soon as the bomb was out I knew I couldn’t possibly take any trade today. There were a few decent setups out there, especially shorts on USDJPY and EURCHF, but the markets were too unsettled for a chicken trader like myself to meddle with them. You know guys, it’s not the best time to be positioned in the market right now.
-HECTOR-
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23 January, 1:21 am
Here we go. Chicken traders reunion again! LOL
23 January, 5:38 am
Hi Hector
Welcome back from your holiday. You chose a perfect time for it, the markets have been very messy lately.
I see that you were looking at the EURCHF trade. I think we are banging onto a weekly uptrend-line support area. Or would you say its already been breached?
Lets hope for a good remaining week, iv only had 1 active trading day this month so- far. Difficult to find anything i really like.
Maybe you could start a Chicken Traders club, ill be happy to sign up.
All the best
Fabio
23 January, 6:33 am
Hector - It may be a good time to look for the perfect
scalp trades. The markets may remain choppy for a while, in the mean time a scalping method or two would be of interest to everyone. The problems is, finding the best method, some are better than others. Anyways…Just a thought.
23 January, 11:07 am
Yeah man, Bernanke’s bomb sure is bound to shake the markets and caution applies more than ever. I wish I had developped my own scalping strategy for times like this!
HECTOR
23 January, 11:12 am
PS: Chicken Traders are back and stronger than ever haha!
-HECTOR-