Donald Trump is President of the USA

November 10, 2016

Donald Trump is the President of the United States of America.

As a trader, I’m sure I’m not the only one feeling a little overwhelmed at how to handle these wild market moves as the market tries to re-price itself in a direction nobody yet knows.

From the National Australia Bank’s morning note:

“US equities appear to have latched on to the idea that Donald Trump means more growth via an increase in fiscal spending.”

S&P 500 15 Minute:
161110_sp500_15minute
Click on chart to see a larger view.

So I guess that’s how you’d go about trying to make sense of the big intra-day V shape that price printed?

More from NAB:

“For the AUD, risk sentiment will be paramount. The prospect of tighter US monetary policy is a negative, but if equities remain buoyant, given a stronger US growth outlook, then this should provide support for ‘risky’ EM and commodity currencies.”

AUD/USD Daily:
161110_audusd_daily
Click on chart to see a larger view.

Again, do these sorts of explinations make sense of the price action?

This sort of explination has a very headlines for headlines sake feel to it and as a trader I have no conviction that there will be follow through because of the reasons given.

In saying that however, we are traders and I wanted to offer the one piece of advice that I always end up coming back to. That being: Can you ever go wrong trading intra-day off of higher time fram levels? With proper risk managment, the answer is no you can’t.

The fact that in Aussie, with all the panic selling in a direction that might not have been the most obvious, the major AUD/USD technical levels were still respected sums this up to a tee.

Take a deep breath and let things play out a little more before making any directional decisions. This is only the beginning.

———

On the Calendar Thursday:
NZD Official Cash Rate: -0.25% cut to 1.75% as expected.
NZD RBNZ Rate Statement
NZD RBNZ Press Conference
NZD RBNZ Gov Wheeler Speaks

USD Unemployment Claims

Take advantage of opportunity in the market with Australian regulated forex broker, Vantage FX.

Dane Williams – @VantageFX

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