Today's Highlights
Exceptional Market Moves
Good Job Phil!
Turkey Trading
Please note: All data, figures & graphs are valid as of November 24th. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview
Most of the action yesterday was condensed in to a very short time-frame. The action started just before the amazing durable goods numbers were published at 13:30 GMT and it trailed off about 3 hours later, just before the Crude Oil inventories.
During this time, USD had its way with the market and beat all the other currencies into submission.
The USD/JPY went from about 111.25 all the way up to almost 113 before correcting. As I'm writing, the pair just broke 113 and is now sitting at 113.30. Incredible!!!
Let's put that move into perspective on the long term chart, since Shinzo Abe came to power...
The euro also took a hit, which isn't great for our clients. They're not giving up though. During the volatility only a few positions were actually closed by stop loss. Rather, traders on eToro saw this move as a buying opportunity and increased their long positions on EUR/USD.
In this chart obtained from our dealing desk, we can see the long positions increasing during the volatile period.
What About the Metals?
Here we have a huge divergence between the industrial metals and the precious metals.
Gold shocked everyone yesterday by breaking the psychological support at $1200 an ounce. When it did break it took out a bunch of stop losses and fell almost $10 in a few seconds.
Silver fell as well breaking its support at 16.40.
If you're looking for excitement in the metal markets, check out copper!! Copper rose more than 2% during yesterday's action and remains one of the best performing assets since Trump's victory.
The most profitable move for our clients was in the US stock indices. Our clients gained on the Dow Jones, the S&P500, and the nasdaq, which all continued their skyward climb.
Spreadsheet Phil
Just a quick word here. I wanted to say that Philip Hammond did a smashing job yesterday. He managed to introduce a lot of much needed spending into the UK's budget. This is a great step towards shifting the country from monetary stimulus (money printed by the central bank) to fiscal stimulus (government spending to build infrastructure and spur growth).
In an amazing feat, the pound sterling remained stable throughout the extreme volatility yesterday. Way to go!!
Turkey Time
This evening begins Thanksgiving in the United States so some markets will be closed.
Usually the markets get pretty quiet during the holidays. However, there's a good chance it will be different this year. Remember, it's only a holiday in the US. The rest of us are in full focus on the markets. With things as hectic as they are the downtimes might actually cause more turbulence as traders may not want to hold their highly leveraged positions when the market is closed.
The markets reaction to the holiday will help us understand where the moves are coming from. If things do indeed calm down then we can understand that the moves are coming from Wall Street. Either way, there's likely to be a lack of liquidity in the markets that are open, which could also add to the heat if the turkey starts to roast.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.