Feb4 – Market Analysis

Great day trading yesterday – with 3 winners on the Zone strategy – two full winners and ½ a winner for a gain of 2.91R.  So far so good.

Market Analysis

The equities markets have been falling heavily – looking at the Nikkei (4% decline on Monday) and the S&P. 

There were some significant changes on the currency matrix.  The Aussie dollar rallied strongly overnight thanks to the accompanying statement from the RBA on their rate announcement.  That as well as the Yen has seen strength.

Yen is now up to 8 points on the matrix – this has risen from 0 at the beginning of January.  CHF also gained two points, with the losers being GBP and USD (2 points each).

I am finding it more difficult to trade STAM setups now that I have been focusing on the zone strategy.  The zone strategy is revolves around day-trading, rather than a swing trading style as the STAM strategy.  I will continue to look for STAM setups in the meantime, and I will just see how I go.  I am using the same position sizing (£250 this week) for both strategies.  The additional difficulty is that the two strategies give conflicting biases.

I am also reluctant to enter into swing trading position given the numerous key risk events happening on Thursday and Friday – rate announcements and NFP.

Examined all the S1 and S2 on the charts. Note that all of the Yen pairs are in ‘short setup’ environments.  At present, there are no valid setups.


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