Today’s Key Market Drivers: 15th March 2019
UK Parliament votes to try and extend Brexit date.
Brexit drama continues in the UK with Thursday seeing the UK parliament vote to try and extend the March 29 Brexit date so another Brexit proposal can be done. The EU said as early as yesterday that the UK parliament needed to make up its mind. Did it want to accept the current offer or reject it? They said the March 29 date was the day the UK will leave the EU and it is up to the UK parliament to whether or not it leaves with a deal or without one. They were not about to consider an extension beyond March 29th.
The volatility for the Pound remains high as you would expect and it is anyone’s guess what the UK will ultimately do and where the Pound will trade next week. There are just so many unanswered questions it’s impossible to make a logical case for a move higher or lower and therefore I urge you to stay away from trying to trade any Brexit technical moves. It is times like these that technicals are completely ignored by big money traders.
Chinese Industrial Production numbers slip again.
February’s China Industrial Production numbers came in weaker than the market expected and each poor China economic number continues to put downward pressure on the Aussie Dollar. The AUD v USD was looking like moving up towards its 200 EMA on the 4-hour chart however the weaker than expected Industrial Production numbers have sent it swiftly back lower to 0.7040. What also suppressed the local currency was a delay to the US / China trade deal announcement although I did read this morning a state visit to the US by President Xi is expected in the coming weeks. You would think he would not make this visit unless a new trade deal was to be announced.
There is no high impacting news for the Asian trading session today and with a mixed lead from Wall Street on Thursday and the focus on Brexit unless there is something unexpected to hit the markets, I would expect most investment bank and hedge fund traders to trade cautiously heading into the weekend.
Looking ahead to next week.
The US Federal Reserve and Bank of England are set to deliver their March statements in the second half of next week. The market does not expect any policy change from either Central Bank however what the market will be keen to read is the statements and any change in the Central Banks sentiment. Since the last US Fed and BOE statements every other Central Bank that has issued a statement in March has warned of slowing global growth and to expect slower inflation and weaker GDP numbers. The US Fed and BOE are bound to also issue forward guidance warnings about the potential for weaker economic numbers so I don’t expect any real surprises.
Swing when it’s in your sweet spot.
That’s what I keep reminding myself each day as I patiently wait for my trades to set up. There is no need to swing and take trades just because the price is moving and this is exactly what 90% or more of retail traders do. If you were not able to make it to my last Master Class series, I shared my 7 personal trading principles with everyone.
- Keep it simple.
- The 20 Trade Rule. (I will explain this in an upcoming report)
- Stay within your circle of competence.
- Your trading plan must scream at you when it’s time to trade.
- One trade at a time.
- 2% risk per trade. (retail traders should not exceed this initially)
- Win big / lose small
This approach has helped me make 25.2% return on investment this financial year which for me started on August 1st 2018 as I took the month of July off. Provided I execute my plan correctly I am virtually guaranteed not to lose money over a 12 month period and my upside will always remain lucrative.
If you’ve been a member of LTG for 6 months or longer you know I don’t trade very often and there is a reason for this. I am not interested in trading plans that have low probabilities of success with poor risk to reward. Some people get frustrated at times that I don’t trade more often. My answer is that I am not here to trade I am here to make money and that’s what I am doing.
Monday’s GoldRock Insider Report.
Due to Trading Mastery, there will be no GoldRock Insider Report this coming Monday. I will be back on deck on Tuesday 19th with my regular daily report.
Success has no age limits.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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