FOMC Ahead...
As I suspected the EUR/USD did indeed move sharply up but is now down. However the other markets that I mentioned to you are all in massive profits too. If you took the trades (as I did) I hope that you are enjoying the ride and I would book some profits before the 1400 (EST) FOMC jawboning where the markets will likely sustain some nasty volatility. I was tempted to issue another sell at a particular point in the market where the EUR/USD hit last night but I do not want anything on the table when Bernanke starts to speak. I suspect (as I mentioned yesterday) that he is not going to taper anything else yet and he will essentially go out with mild retreat. Not what most traders are expecting but that is precisely the point isn't it:)
In the past two big releases let me ask you, "did the market give people what they expected or what they did not expect". Think about that for a minute.
Rumors are exactly that and they are designed to add profits to the smart money. If you listen to the talking heads then you will be a part of the massacre in most situations. Price action rarely does what most people expect and you need to start seeing the markets for what they are rather than what you want to see to become a successful trader.
Remember for your survival you brain is programmed to look for certain things that may or may not exist. That is what the market makers count on.
Other than the general direction of the market there will be no real serious news that will effect the markets. If you don't already know my stance your key trade this year is the rise of the US Dollar. You can forget about everything else. You can play this in the EUR/USD and in the USD/CHF which are highly correlated to the US Dollar movements.
That is another very big reason why gold is not rocketing anywhere soon.
If you look back over the longer time frames you will see that gold made its most spectacular gains when the Dollar was falling the hardest. Don't forget that for about eight years the Dollar did nothing more than fall. Kind of about the same time gold rose the strongest.
In the past two big releases let me ask you, "did the market give people what they expected or what they did not expect". Think about that for a minute.
Rumors are exactly that and they are designed to add profits to the smart money. If you listen to the talking heads then you will be a part of the massacre in most situations. Price action rarely does what most people expect and you need to start seeing the markets for what they are rather than what you want to see to become a successful trader.
Remember for your survival you brain is programmed to look for certain things that may or may not exist. That is what the market makers count on.
Other than the general direction of the market there will be no real serious news that will effect the markets. If you don't already know my stance your key trade this year is the rise of the US Dollar. You can forget about everything else. You can play this in the EUR/USD and in the USD/CHF which are highly correlated to the US Dollar movements.
That is another very big reason why gold is not rocketing anywhere soon.
If you look back over the longer time frames you will see that gold made its most spectacular gains when the Dollar was falling the hardest. Don't forget that for about eight years the Dollar did nothing more than fall. Kind of about the same time gold rose the strongest.
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