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This morning, the BOJ (Bank of Japan) surprised markets by adopting negative interest rates.

boj negative rates

Source: http://www.channelnewsasia.com/news/business/bank-of-japan-surprises/2468964.html

 

BUT WAS IT REALLY A SURPRISE?

Well, to be honest, the news indeed was a surprise, but the direction that the Yen was going to take was no that surprising. This was because the price was leading the news, and we had already positioned ourselves beforehand for this move by sticking to our rules and applying the correct setups for such a market.

Hence it was no surprise when the new broke that I made S$4,866 (US$3410) profits from this move alone, from my long positions in USD/JPY, GBP/JPY and EUR/JPY, which gave me a net short exposure to the Yen.

In the Synapse Network, most of us took the same positions, but there were also some independent traders who used different pairs to get short exposure to the Yen. Either way, the results will not differ much.
 

HERE ARE THE REAL TRADES & REAL RESULTS:

2016-01-29 23.12.50

usdsgd rates 290116

synapse network 290116 2

synapse network 290116

What will the next BIG move be? Stay tuned! 😀

After the bad jobs report last Friday, the chance of an interest rate increase has gone down, and this is interpreted as a bullish sign for equities, as seen in the strong BOUNCE in the last 2 days, as well as today.

There is a good chance the STI will try to test the 3,000 level again, after a false breakout from its previous hybrid of a flag pattern and triangle pattern, giving rise to an expanding triangle pattern.

straits times index 071015

synapse network 071015

 

In addition, we also have some good news on the confirmation of the Trans-Pacific Partnership Trade deal with 11 pacific nations.

wsj 071015
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It is best to wait a while for the dust to settle, and see if the downtrend continues. For existing positions, don’t forget to manage your SL carefully. Good luck!