Looks like Sanders won big in Nevada, this might cause a continuation of Fri sell-off. I'm aware that most business newscasters are saying Sanders (and Warren) are to too radical to win the presidency, but, the majority of voters are not business people, a Robbin Hood in the Whitehouse is what the masses want... wealth distribution without the hard work required to rise above the average, rather unAmerican but there are plenty of voters that think spunging off the achievers is their right.
Trading the Indices on Fundamentals
- Thread starter FXtrader8911
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Over the weekend Warren Buffett released his yearly letter to shareholders, one of the most anticipated pieces of financial content in the world each year. But this year, the letter was rather non-informative and stating the obvious, people, like myself, looking forward to Buffett's insight of market action were disappointed. Just about the only takeaway in his letter was that "Acquisitions at a sensible price are proving rare" i.e. everything is overvalued, nothing new there at all.
Futures opened Asia Mon over 1% down, DOW gapped to 28,748, FTSE to 7339
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Watch the MIB40 on EU Open, it could set the pace of EU down-slide
During the Asian session, there was flight into the USD, a higher $ will not help the US equities.
Shorts up $33.2k so far today but I'm not t/p, going with my call of lows hitting bottom in March.
My shorts are now $39.2k in the money and looking at good levels to unwind them since my DOW target of 28,093 was hit. I'll shortly be going from net short to neutral. Not that I think the selling is over as both the Sanders win and the virus are continuing bad news, but now shorts will be unwound at staggered levels and everything is on my shopping list at the right price, including sone tech direct shares and maybe airlines if these fall sufficiently... I'll be going from the now net short to neutral to net long as prices develop. I've also got some VIX sell orders at above 21.
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I'm anticipating a 27,300 DOW, got to 27,900 today then some buying interest came in, perhaps a dead cat bounce? My strategy called for going neutral at around 28,100 so I've done that with new longs as hedges i.e the $40k profit on the shorts has been locked-in, now I wait and see what happens in March... If today was the low then I marry-off the new longs and take the $40k, if we go lower as I expect then I'll unwind the shorts at a better point. Being neutral means the profit has been locked-in but not taken yet, I now got all the time in the world to see which way markets go from here, hopefully, lower allowing me to improve on the $40k and close off the shorts permanently... I'll never go short in the US again! the resilience of US markers astounds me.
I think the US players finally understood the severity of the coronavirus.. took some time to sink-in but finally, it did, now there are the elections and Bernie's big win to contend with, that's why I want to see how March goes (reporting & Nomination)
I think the US players finally understood the severity of the coronavirus.. took some time to sink-in but finally, it did, now there are the elections and Bernie's big win to contend with, that's why I want to see how March goes (reporting & Nomination)
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The 2nd target of 27,300 for the DOW has reached Tue, I have now gone from neutral to net long in both US & EU... things have worked out well and all targets reached thus concluding the present strategy. Now I wait and see what markets do next to plan the next strategy. I had 4 very profitable sessions in a row with the Thu surge and subsequent sell-offs... was able to profit from both
US Markets are currently 9% off their Highs, Europe is at -10% and the UK at -12%, correction territory is here. I repeat a previous graph as it has now become relevant, adjust the last entry to -9% so far and probably reaching -13% as was the case in previous pandemics. Probable Next Target for DOW is 26,532
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I'm now setting my buy/sell orders around a 26,532 DOW giving a 3,068 S&P and a 12,327 DAX (FTSE could go to 6,793)