Daily Plan

Strategy – BOE Carny Speaks, FED Member Speeches

Strategy

Moving back up to 2 contracts, finally built up positive account balance with some reasonable trading, so have a buffer for quality setups.

Overnight:

  • Yen made significant progress to the downside on a stronger dollar with Dudley and Evens hawkish Fed commentary.
  • Asia stocks up, with US risk sentiment apart from Australia’s equity lagging somewhat.
  • Australia credit rating cut my Moody’s, big 4 bank stocks suffer, GDP supported after RBA meeting kept AUD bid.
  • EU UK Brexit negotiations begin, Britain making first compromises.

Data

  • 07:00 German PPI Data – m/m exp 0.1%, y/y 2.9%.
  • 08:30 BOE Carney Speaks 8:30 about interest rates and general economic outlook.
  • 13:00 US Fed Fischer (neutral, voter) speaks.
  • 13:15 US Fed Rosengren speaks (non voter, soft Hawk).
  • 15:00 EU ECB Speech (dove).

Trades

Euro x 2 contracts (in progress trade already taken)

  • Type: Range play
  • Entry: overnight low, low of the 16th
  • Target 1: Overnight high/Pivot
  • Target 2: R2
  • RiskRward: 2:1 minimum
  • Summary: Staying with the trend and overall bullishness of the Euro vs dollar, however sentiment may already be changing as hawkish comments from the fed has pressured the majors during recent sessions after last weeks more hawkish tone on the plan to unwind the feds balance sheet. Expecting a range bound day and the overnight lows to hold, may take both contracts off at pivot if we don’t see much interest to push it through.

Trade1EuroLong.png

JPY x 2 contracts

  • Type: Trend Play – bearish pullback
  • Entry: Pivot Pullback
  • Target 1: Overnight High
  • Target 2: S1
  • RiskReward: 3:1 minimum
  • Summary: Dollar strength, inflows into the dollar for the positive carry and also recent trend to sell Yen. Recent negative trade balance data for Japan supporting a short. Also current risk on sentiment in global equity indices has seen added selling pressure on the safe haven currency. Waiting for a decent pullback for the entry as we have sold off a fare bit already.

IdeaYenShort.png

S&P500 x 2 Contracts

  • Type: Trend Play – Pullback (playing the range, quite day)
  • Entry: Pivot Pullback
  • Target 1: Overnight support (low)
  • Target 2: Overnight High
  • RiskReward: 1.5 minimum)
  • Summary: Global risk on, staying on side of equity bullishness, gold is in a down trend, tech stocks posting large gains, Yields increasing. Looking for an entry @ pivot on a pull back, looking to play the overnight range staying onside of the trend.

ideaESlong.png


Disclaimer: There is substantial risk in trading. A loss incurred in connection with futures trading be significant. Target Alpha Trading makes no claims whatsoever regarding passed or future performance. Any Strategy is for educational purposes only.

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