Donald Trump is the next President of the United States of America.
As a trader, I’m sure I’m not the only one feeling a little overwhelmed at how to handle these wild market moves as the market tries to re-price itself in a direction nobody yet knows.
From the National Australia Bank’s morning note:
US equities appear to have latched on to the idea that Donald Trump means more growth via an increase in fiscal spending.
S&P 500 15 Minute:
So I guess that’s how you’d go about trying to make sense of the big intra-day V shape that price printed?
More from NAB:
For the AUD, risk sentiment will be paramount. The prospect of tighter US monetary policy is a negative, but if equities remain buoyant, given a stronger US growth outlook, then this should provide support for ‘risky’ EM and commodity currencies.
AUD/USD Daily:
Again, do these sorts of explinations make sense of the price action?
This sort of explination has a very headlines for headlines sake feel to it and as a trader I have no conviction that there will be follow through because of the reasons given.
In saying that however, we are traders and I wanted to offer the one piece of advice that I always end up coming back to. That being: Can you ever go wrong trading intra-day off of higher time fram levels? With proper risk managment, the answer is no you can’t.
The fact that in Aussie, with all the panic selling in a direction that might not have been the most obvious, the major AUD/USD technical levels were still respected sums this up to a tee.
Take a deep breath and let things play out a little more before making any directional decisions. This is only the beginning.
On the Calendar Thursday:
NZD Official Cash Rate: -0.25% cut to 1.75% as expected.
NZD RBNZ Rate Statement
NZD RBNZ Press Conference
NZD RBNZ Gov Wheeler Speaks
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