There are a lot of news out today, and it’s time to get into some of it.
- Overnight, we got the Federal reserve stating that they’re watching for deflation, which gave markets a shot in the arm.
- The morning opened with Japanese trade data, with October exports increasing by 9.6% YoY, imports by 2.7% YoY (against expectations of 4.5% and 3.4% respectively) leaving a trade deficit of 710 billion yen, on expectations of a 1.05 trillion yen deficit.
- HSBC’s China flash PMI came in at 50 exactly (exp.: 50.3) and has soured the Chinese trading a bit.
- The People’s Bank of China decided to start adding more liquidity to the markets by doing RMB10 billion of repo operations.
Markets, on a spot latest-to-close basis, are taking this rather well even though the Japanese futures markets were clearly indicating bigger hopes from overseas investors overnight.
Also, how do you make money off the yen? It’s a rather complicated, multi-step process:
- Find a news announcement time.
It doesn’t really seem to matter just what news are out, or what they say – the yen gets sold. 118.7 to 1 US dollar at the time of writing, and 148.9 to the euro. It spent all of three hours testing resistances in the 118.1 – 118.3 area. That leaves us far above the 50% long-term Fibonacci level, that looks to herald a quick jump to 121 to the dollar before the move is slowing down. I never expected to be here in mid-November, so pardon my tardiness on forecasts.
There will be more later today, potentially on Japanese indices depending on if there is significant new technical data to cover, and definitely on Hong Kong and China indices after my technical analysis and stupid predictions came in so well.
Until then, KMP! (Keep Making Profit)