Friday Update

Thought of the Week: the only system we need is the ability to read a simple chart: what we need to understand is that there is only one thing we need to practice…and that is our own minds!

This has been another busy week, with central banks centre stage and more choppiness. The hype continues on US growth and forecasts but what we are staring at is much more likely to be a peak. Global growth and manufacturing  PMIs are slipping and China is the big problem. And guess what..credit is expanding and the Fed is adding to the debt. Is this sustainable…it does not look like it.

There are plenty of warnings so we have to decide how to trade the conditions and that includes the question of strategies for the longer term and how we go about constructing portfolios.

The Trades

Sand P500: a move into balance is a warning sign.

EURUSD: the big areas to do business, above 1.17 and 1.15

USDJPY: case study using different charts

 

Charts

The decision is always where to do business and for that, a plain chart with pivots is what you need.

Every set of conditions requires a different approach. Ranging or trending? The systems have to be adjusted.

Discretionary traders need the basic chart! The only thing is the place to do business. Keep it simple.

Please check the video for the full discussion and how to identify conditions.
 

 
There will be 2 meetings next week and we will be taking a break the week following. Details will be emailed.

Judith Waker