Low Volatility Trading
Good Morning,
The low volatility theme continues. I call these times, the "grind". You have to grind it out each and every day. Locations for entry should be thought through very carefully. Reasonable targets for profits are eseential to a realistic exit plan. And most importantly, being patient and learning to sit on your hands is essential. This low volatility period may not end any time soon due to central bank mingling, but at least we are getting closer to what I call the "Fall Session". After Labor Day, traders return from summer vacation - check out the Algarve to find many European traders or the Hamptons to find Wall Streeters. With the start of the fall session, hopefully volatility will pick up a smidge. A smidge would add some life to the markets and with that, more opportunities as trading ranges could pick up a bit.
Fundamentally, claims are heading back towards the 350k level wich is good, but not good enough to keep the Fed from stepping in. The light data continues into next week, but definitely watch retail sales.
Technically, oil is still near its recent highs, bringing the USD lower against the CAD. But to prove the opening paragraph and the low volatility message, take a look at the GBP/USD range over the past two and a half months:
Past performance is not indicative of future results
With equities, sellers are non-existant and 1420-1425 is up next. In other sectors, defense (and dividends) are key as XLU (utilities) and other consumer necessities (WMT, JNJ...), are doing well. Then again, most stocks and sectors are doing well as of late. The chase for yield continues.
Link to upcoming webinar on Stops and Trading Plans
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
