XJO 0.01% 8,142.1 s&p/asx 200

That's guesswork. May or may not happen - sentiment drives price...

  1. rvm
    992 Posts.
    That's guesswork. May or may not happen - sentiment drives price and price determines profit. I would know, as I trade using news, but mere news is insufficient.

    You can 'predict' news but have to focus on price. For swing trading you can setup technical levels..... support/resistances and make some general assumption on how news will cause prices to fluctuate. One can trade between a range based on 'good'/'bad' news released to counterbalance each other. Often strong trend triumphs news.... good news in downward trend can be construed has bad and similarly, bad news in upward trend can be ignored. During 'big macro events' I'd expect good volatility and decent ranges, but that's expectation which may or may not eventuate.....

    Some 'TA'

    So far, XJO looks like it has held onto 5260 mark. Another way to look at this is to think that the last 4 days sideways move is distribution/accumulation - the direction of the next range breakout will reveal momentum.

    If people are uncertain, they take some profit off the table and just don't day trade. That would affect volumes and liquidity. Super funds, passives and long time frame investors will remain in the market. World won't end, but people may suffer and government/central banks will draft policies to deal with whatever happens. I'm a little plankton in the ocean trying to not get killed. Let's hope the election offers some good trading opportunities.
    Last edited by rvm: 01/11/16
 
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