Daily Plan

Strategy

Overnight:

  • Stocks finish lower as doubts over pace of tax cuts.
  • House considers phasing in tax cuts to 20% reduction.
  • Jerome Powell seen as favorite by Trump, more dovish that Taylor.
  • White House distancing themselves from Manafort charges stating that it has nothing to do with the Potus.
  • Asian Shares mixed after minor US losses.
  • BOJ keeps stimulus unchanged and doesn’t raise rates.
  • China Manufacturing slows and comes in worse than expected.
  • Australian economic confidence hit by political risk.
  • Euro stocks poised to open higher due to earnings.

Data:

data

Strategy:

Looking ahead, I am liking the short in Aussie dollar today, based on the current bear trend in the Aussie, current positioning, political instability, weaker than expected china manufacturing data and backdrop of dollar strength due to pending US rate rises in December.

The trade is a positional trade looking to hold for the entire day. Will trade the actual position with M6A mini because of recent accumulated losses, I would like to downsize my risk and protect my account until I have sufficient margin to start trading bigger contracts again.

(6A Aussie execution strategy charted)

6AShortIdea

Aside from that, we have Euro-zone CPI & GDP, which will move the euro this morning, looking at optimally a short in-light of the current sentiment and after the dovish ECB comments last week at the ECB press conference.

We also have CAD GDP and also USD PMI which should bring decent volatility to the cad and dollar which could set the trend for the other majors moving into the US session.

Euro Short Idea – basically, looking for short opportunities in the Euro after ECB’s dovish stimulus cut last week, we have GDP and Euro CPI data, looking to short/fade any positive data from higher up, or enter at market on a straight miss on both data sets (see execution chart below).

6EShortIdea.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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