Nov5 – Market Analysis – STAM

Position Management & update on actual trades

S3 trades – See separate post on the S3-related trading.

JBT – Closed the AUDUSD position ahead of the RBA announcement, taking profit of 0.75R on the trade.  Thus the day ended positive for JBT, with +0.5R.  I didn’t take any trades today because the trades were going against the trends from the higher timeframes.  Positive GBP news came out at 9.28am – I have to say, it can’t be too difficult to make money trading post-news with the help of STAM and JBT.

Equity Markets

Are trading down this morning.  RBA (AUD) kept the rates the same, but they commented that they consider that the AUD is still valued too high at the present levels.  This is bearish for AUD in the long run. 

FX Markets

There has been strength in the Yen and the US dollar as of late.  Nothing has changed on the matrix in terms of STAM points.  The points are identical to yesterday. 

Potential STAM setups

  • AUDUSD AUDJPY EURJPY  There have been significant pullbacks in the appropriate direction on all these pairs – however the pullbacks are still in progress.  There has not been sign of appropriate price action and/or turnaround as yet.
  • CADJPY I did not look at this pair yesterday because I consider both currencies as weak in the context of the STAM matrix.  With the benefit of hindsight, it is arguable to say that JPY has strong momentum and CAD has none.  Consequently I am going to try to get this short on this trade at a level around 20 pips higher than current trading levels.  There are no CAD or JPY news events scheduled until Wed afternoon.  Short @ 94.33, Target 93.08, Stop 94.83 (Reward to Risk of 2.5).
  • AUDCAD Looks good, pullback and nice bullish looking candle on D chart – however this candle alone is not sufficient price action.
  • EURCAD Also looking good. Price seems to have stabilised and it is starting to look a bit bullish on the 4H chart, with several bin pars and a lot of bullish closes (other than the current candle, which will close in 15 minutes)
  • CADCHF Also looking nice, a bit of a bearish pin bar on the D chart, but ideally the candle would have closed nearer the lows of the day, rather than where it did close – as it is, the candle shows more indecision rather than bearish sentiment.

Thus in summary, order entered on CADJPY – nothing else aside from that.  I will not be checking the markets again until this evening.

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