By now you’ve heard the news; a Swiss tsunami has hit FX markets. In a historic move that took even the most seasoned investors and experienced brokers by complete surprise, the Swiss National Bank (SNB) has removed the 1.2 floor for the EUR/CHF, effectively eliminating the Swiss Franc’s peg to the Euro. The Swiss Franc, as a result, surged a jaw dropping 38% vs the Euro and 29.7% vs the Dollar in only a few hours, leaving Swiss equities tumbling and Swissie bears crushed. Undoubtedly, this aggressive move and the volatility it generated will be talked about for years. But what does this SNB move say about Switzerland, about the Euro and, more specifically, about the Swiss Franc’s future? Continue reading "The Ramifications of the SNB Move"→
Today is surely Swiss National Bank’s day after it abandoned the cap for EUR/CHF cross which was introduced in September 2011. Swiss franc surged for a record against everything that can be traded. What are the first associations when we are thinking about Switzerland? Yes, first is gold, then luxury watches and of course chocolate. This country has had the gold of the world stored in its banking vaults and a safe currency, but now the Central Bank is nervous because of the currency’s excessive appreciation. So today’s shocking Swiss franc move inspired me to compare both instruments boasting a safe status. Continue reading "Safe Haven Test: Gold vs Swiss franc. SNB edition."→
It's been a while since we did a video on the euro/dollar relationship. This relationship may be reversing again based on recent price action. In today's short video I point out some of the changes we see happening in this market.
This week could be shaping up to be an extraordinary week in the markets. I strongly recommend that traders everywhere take precautionary measure measures to protect capital.
As always our videos are free to watch and there are no registration requirements. I would really like to hear back from you with regards to your thoughts on this video.
In today's video I'm going to share with you a wonderful way to look at the forex markets and determine which way they are headed in a matter of seconds. We'll be looking at three different cross rates and how they all correlate together in a way that I think may surprise you.
The forex markets are the biggest markets in the world and MarketClub not only covers all of them, but also covers them in real-time with pricing and charts. I hope you learn from this video and take the time to post your comments on our blog.
We've spoke and taught about correlation trading before here on the Trader's Blog, but today I've asked Jason Fielder (a multi-time guest blogger) to give us his insight on correlation trading. The below article is an excellent read and I HIGHLY recommend taking a few notes so you don't miss anything. Jason has told me that he will be responding to all comments and questions you post below. Also, he wanted me to give you a heads up about his new Correlation Cheat Sheets...so check that out if you have some time...but read the article first!
Correlation Trading is a style of trading that is gaining momentum between traders “In the know”. In fact, the momentum is so strong, Correlation Trading is the cover of this month's Futures Magazine!
As soon as you understand this methodology, not only you will understand WHY it's so powerful, you'll immediately want to get your hands on a few correlation strategies. Correlation trading is all about discovering a way to see what I call “cracks” in the market.