Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

straddle

Trade While Holding on to Your Day Job

Recommended Posts

In this crazy world a paycheck is more important than chassing crazy profits , however if you have some experience and you like trading you can do some trading on the side .

 

How can you do that when you are occupied during trading hours ???

 

I guess you do your homework on the weekends and your focus is longer term . You dont trade based on the day but rather on the week or the 15 days .

 

But how exactly do you go about it ?? Do you put a blind order before market opening just in case the "product" reaches your target price ??

 

The obvious answer is trade with the help of a broker (an actual person) but after a while the broker will start taking initiatives and before you know it you dont trade anymore but rather the broker trades with your money .

 

Any ideas on how to accomodate trading with a full time job you dont want to lose??

 

PS In this thread the topic starter loses all signals because he has to work http://www.traderslaboratory.com/forums/beginners-forum/14437-exit.html

Share this post


Link to post
Share on other sites
In this crazy world a paycheck is more important than chassing crazy profits , however if you have some experience and you like trading you can do some trading on the side .

 

How can you do that when you are occupied during trading hours ???

 

I guess you do your homework on the weekends and your focus is longer term . You dont trade based on the day but rather on the week or the 15 days .

 

But how exactly do you go about it ?? Do you put a blind order before market opening just in case the "product" reaches your target price ??

 

The obvious answer is trade with the help of a broker (an actual person) but after a while the broker will start taking initiatives and before you know it you dont trade anymore but rather the broker trades with your money .

 

Any ideas on how to accomodate trading with a full time job you dont want to lose??

 

PS In this thread the topic starter loses all signals because he has to work http://www.traderslaboratory.com/forums/beginners-forum/14437-exit.html

 

Hello,

 

If you're trading a mechanical method end of day then you could just get someone else to place trades for you - a friend or spouse or whatever. Provided they're set up to clearly recognise an unambiguous entry or exit signaland understand the importance of following the system then that might be preferrable to a broker. I did this for nearly a year with someone else placing trades because I lived somewhere so remote that there was no reliable broadband internet connection.

 

Hope that suggestion is helpful.

 

BlueHorseshoe

Share this post


Link to post
Share on other sites

Straddle, I trade full time …have traded intraday full time for years and the markets typically look ‘dead’ to me. (I love sheer parabolic :rofl: ). But, even though they are what I consider ‘dead’ these days, I still would not advise someone to trade futures without being able to stay with it real time… maybe small positions in mini’s …

 

…but I do have a couple of 10:1 leveraged accounts that could be traded by someone in the situation you described. One of them is currently being used, along with other automated systems in other accounts, to exploit the 2 – 8 AM Eastern time period in FX – a time most US traders wouldn’t be at work anyways….

 

This way uses 3 hour charts and can be looked at just one or two times a day. I typically spend about 15 minutes net in the account per day near lunch or afternoon break. Most of that time is used referring to sizing spreadsheet and almost zero time in analysis – once I get the next size figured out, I often just flash click orders near (old fashioned) SR’s and targets near eyeball ratios…etc .

ie For these accounts it’s not cost effective for me to do much ‘homework’, but developing traders could do all the ‘homework’ they want and / or have time for in the evening or early morning. … like.... I’m ‘off work’ and on ‘automation’ at that time of night, but for someone in this situation this way would really be conducive to order placement during the asian session, ie just before most US bedtimes and then he wouldn’t have to look at it again until next night (or first coffee break at work :))

 

The way trades 16 FX instruments and typically is in an average of about 10 positions. Holding time in positions ranges from minutes to weeks with the good trades typically lasting at least 2 or 3 days +. I use a ‘clean’ price chart (but it does have one indicator in lower panel). I use stops in only about 15% of the trades. Risk of ruin is minimal. It uses small, progressive size scaling (ie pyramiding via declining size with each with-trend entry and increasing size with each contra-trend entry). Exits are managed via resting ( limit and (lazy) trailing stop) orders and if they are filled in alignment with my projections of PA and targets and price is still nearby when I come in to the account in the afternoon, then I tend to go ahead and manually get all out the rest of the position - but with some extra (home)work one could step out of positions more incrementally and profitably (maybe).

 

Point is - it’s doable for someone in a situation similar to the one you illustrated above. The way/account I described is up over 40% every year for last 4 years… and over 60% ytd this year… with peak historical unrealized p/l at -15%(under the current sizing algos) - and that state lasted less than a two weeks… usually unrealized p/l goes to +- - 3% then comes back…

 

...since we all only have a few more until the end of the world... ya'll have a great weekend.

:missy:

 

btw: born on 11/16/07 ... today is my 5th TL birthday ... wonder how many lives I've screwed up ? not a one... they screwed their own lives up... wonder how many lives I've enhanced? not a one... they enhanced their own lives

Edited by zdo
fix and add

Share this post


Link to post
Share on other sites
In this crazy world a paycheck is more important than chassing crazy profits , however if you have some experience and you like trading you can do some trading on the side .

 

How can you do that when you are occupied during trading hours ???

 

I guess you do your homework on the weekends and your focus is longer term . You dont trade based on the day but rather on the week or the 15 days .

 

But how exactly do you go about it ?? Do you put a blind order before market opening just in case the "product" reaches your target price ??

 

The obvious answer is trade with the help of a broker (an actual person) but after a while the broker will start taking initiatives and before you know it you dont trade anymore but rather the broker trades with your money .

 

Any ideas on how to accomodate trading with a full time job you dont want to lose??

 

PS In this thread the topic starter loses all signals because he has to work http://www.traderslaboratory.com/forums/beginners-forum/14437-exit.html

 

depending on what you mean by "trading"?

 

do you mean intraday trading of futures?

 

NO WAY

 

don't kid yourself.

 

95% of the people can't do it staring at the monitor full time, what makes you think you are more superior than them?

 

 

If you like your regular pay check...

don't ruin it.

if you spend even a little bit of your attention trading, you are likely to underperform in your day job, and you will get into trouble with your boss sooner then later.

 

My advice:

 

1. don't even think about trading

 

2. think investment, think buy-and-hold

 

3. spend your spare time with your family and friends

 

4. spend your extra cash (while you have it) on yourself and your love ones. If you do not listen to this, come back one year from now and read this post again. You will wish you had spent your money as I directed, because the market is ruthless, it will take your money, and more.

 

 

enjoy!

Share this post


Link to post
Share on other sites
depending on what you mean by "trading"?

 

do you mean intraday trading of futures?

 

NO WAY

 

don't kid yourself.

 

95% of the people can't do it staring at the monitor full time, what makes you think you are more superior than them?

 

 

If you like your regular pay check...

don't ruin it.

if you spend even a little bit of your attention trading, you are likely to underperform in your day job, and you will get into trouble with your boss sooner then later.

 

My advice:

 

1. don't even think about trading

 

2. think investment, think buy-and-hold

 

3. spend your spare time with your family and friends

 

4. spend your extra cash (while you have it) on yourself and your love ones. If you do not listen to this, come back one year from now and read this post again. You will wish you had spent your money as I directed, because the market is ruthless, it will take your money, and more.

 

 

enjoy!

 

Hi Tams,

 

Do you think a mechanical end-of-day approach is practically unworkable then (apart from the risk of losing lots of money as you rightly point out)?

 

BlueHorseshoe

Share this post


Link to post
Share on other sites
Hi Tams,

 

Do you think a mechanical end-of-day approach is practically unworkable then (apart from the risk of losing lots of money as you rightly point out)?

 

BlueHorseshoe

 

Anything is possible... everything is relative; it all depends on your account size and risk tolerance.

 

The reason people trade futures is because of the leverage.

Leverage is a double edged sword.

 

I would not recommend any newbie to trade futures overnight.

 

For the OP... If you have to ask... you are not ready.

Share this post


Link to post
Share on other sites

Thank you all for you answers . I guess you are right about futures being out of the question . They are risky and open positions need a margin . It is just that you can short the market with futures . I guess only stocks and options trading is right for me . Propably I will need to do alo of paper trading and see if I can pull this of . First I will browse the forum to collect info.

Share this post


Link to post
Share on other sites

Futures offer leverage - but that does not mean you have to use it.

Unless of course you are undercapitalised.

 

As to how to trade while hanging on to your day job.....

Well 1) either have a day job that allows you to constantly monitor the markets, or

2) spend any time you have researching the markets looking only at strategies that allow you to set and forget.eg; trend following, swing trading over 2+ days.....otherwise day trading is a waste of time IMHO - it requires a different set of skills and viewpoint.

Share this post


Link to post
Share on other sites
Thank you all for you answers . I guess you are right about futures being out of the question . They are risky and open positions need a margin . It is just that you can short the market with futures . I guess only stocks and options trading is right for me . Propably I will need to do alo of paper trading and see if I can pull this of . First I will browse the forum to collect info.

 

Have you looked at ETFs at all? This could solve the leverage problem and I believe they're usually fairly easy to short (although I have no direct experience with them).

 

BlueHorseshoe

Share this post


Link to post
Share on other sites

You can build a swing trading strategy that works for your situation. There are lots of traders that have full time jobs. With today's mobile apps and alerts you can make it happen. Find a platform that has what you need and go for it.

Share this post


Link to post
Share on other sites
In this crazy world a paycheck is more important than chassing crazy profits , however if you have some experience and you like trading you can do some trading on the side .

 

How can you do that when you are occupied during trading hours ???

 

I guess you do your homework on the weekends and your focus is longer term . You dont trade based on the day but rather on the week or the 15 days .

 

 

In your particular situation, only trade markets that do not interfere with the work hours of your day job if your primary source of income is your day job. Yet, that implies when you're in a trade it will obviously overlap in your personal life (social life, family life, sleep routine and so on).

 

I don't recommend opening and closing positions while at your day job. Thus, no trading while at work unless you have the technology to do such and that such will not get you in trouble with your job when caught doing such.

Edited by wrbtrader

Share this post


Link to post
Share on other sites

A great book with a cheesy title that would make you never consider buying it:

How I Made $2, 000, 000 in the Stock Market: Nicolas Darvas: 9781614271697: Amazon.com: Books

 

A chart is a chart. I position trade off weekly and daily charts. Mostly ETFs. You can not make a living this way unless you have a ton of money, but it is a good way to manage a small investment account and get the hang of getting to know price action and watching the charts. An hour or less in the evenings would be enough.

I enter using a stop order if markets break through a certain price. Usually I like to be there at the open though to make sure market is not making a crazy gap or something.

 

I also trade off daily and hourly charts. This requires looking in a few times a day and you have to realize that you will just miss some here and there because you aren't in the right place and time, but it still helps to learn the price action. That is the main thing.

 

I don't know anything about mechanical trading...

 

The main thing, if you are just starting, is top spend a lot of time just watching charts. Forget about trading.

Share this post


Link to post
Share on other sites
In this crazy world a paycheck is more important than chassing crazy profits , however if you have some experience and you like trading you can do some trading on the side .

 

How can you do that when you are occupied during trading hours ???

 

I guess you do your homework on the weekends and your focus is longer term . You dont trade based on the day but rather on the week or the 15 days .

 

But how exactly do you go about it ?? Do you put a blind order before market opening just in case the "product" reaches your target price ??

 

The obvious answer is trade with the help of a broker (an actual person) but after a while the broker will start taking initiatives and before you know it you dont trade anymore but rather the broker trades with your money .

 

Any ideas on how to accomodate trading with a full time job you dont want to lose??

 

PS In this thread the topic starter loses all signals because he has to work http://www.traderslaboratory.com/forums/beginners-forum/14437-exit.html

 

Working full time a job = guaranteed money

 

Trading = maybe you win maybe you don't

 

I will never leave my full time job or trade futures again while working. Not worth the stress or money.

Share this post


Link to post
Share on other sites

the good thing about trading its flexible, I have my day job and i still trade with hotforex, i dont scalp since its time consuming but i manage to squeez a couple of swings every now and then and watch the charts go. :D

Share this post


Link to post
Share on other sites
the good thing about trading its flexible, I have my day job and i still trade with hotforex, i dont scalp since its time consuming but i manage to squeez a couple of swings every now and then and watch the charts go. :D

 

I think there is very hard line when one must decide to leave a steady job and just focus on forex... I guess you start trading with different mind-set after you do so...

Share this post


Link to post
Share on other sites
I think there is very hard line when one must decide to leave a steady job and just focus on forex... I guess you start trading with different mind-set after you do so...

 

the good thing about trading its flexible, I have my day job and i still trade with hotforex, i dont scalp since its time consuming but i manage to squeez a couple of swings every now and then and watch the charts go. :D

 

I have to agree with Savant to an extent. With forex trading, there tends to be a 'detached' mindset that comes with it; you have to let go to get the maximum benefit from your trades. If you trade without fear, that's one thing. But if you find yourself unable to sleep at night, you are trading with too much risk!

 

One way to reduce the stress also is to reduce your living expenses. Usually rent and food are the two largest reoccurring expenses for a trader. This may not work for everyone, but going to a lower-cost country will significantly. Expat's choices would be thailand or Columbia, although you might find comfort in different places.

Share this post


Link to post
Share on other sites
...Expat's choices would be thailand or Columbia, although you might find comfort in different places.

 

I can say that Thailand is the best if you want trade during the London session ;)

Share this post


Link to post
Share on other sites
LOL did that some weeks ago on a lovely island near here, not trading part though...

 

I visited Thailand a few time... it is a wonderful place.

spent some time in Phuket and the islands.

Played about 30 golf courses in and around BBK.

Will take the train and travel north next time.

Share this post


Link to post
Share on other sites
I visited Thailand a few time... it is a wonderful place.

spent some time in Phuket and the islands.

Played about 30 golf courses in and around BBK.

Will take the train and travel north next time.

 

:) that is a great plan...there are cool places to see around Chiang Mai and Chiang Rai area

Share this post


Link to post
Share on other sites

Successful trading besides a day job is definitely possible.

 

I would recommend to trade Forex on the 4 charts. You can do this by looking at the charts twice a day for 15 -30 minutes (for ex. after breakfast and before dinner). You can put in orders for entry and exist of new positions and manage open trades (adjusting trailing stops etc.). If you trade wisely multiple pairs simultaneously you have a certain degree of diversification and you make up for missing some opportunities because you cannot watch the whole day. If you are day trading (scalping) you can focus just on one or two instruments but with a 4 hour time frame you can overlook and manage many different currency pairs (+ Spot Gold depending on the broker).

Depending on your capital you choose to trade with micro lots, which makes it easy to adjust the risk very carefully, so that you are not over leveraged even with many different open positions.

However, you should find a style or system, that trades mainly on and off certain price levels rather than on indicators or moving averages alone, because price levels are fixed and therefore need no permanent attention like constantly changing indicators.

You should look into gartly patterns, measured moves (AB = CD) etc.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • lmfx just officially launched their own LMGX token, Im planning to grab a couple of hundred and maybe have the option to stake them. 
    • Date: 2nd April 2025.   Market on Edge: Tariff Announcement and Volatility Ahead!   The US economic and employment data continues to deteriorate with the job vacancies figures dropping to a 5-month low. In addition to this, the IMS Manufacturing PMI also fell below expectations. However, both the US Dollar and Gold declined simultaneously following the release of the two figures, an uncommon occurrence in the market. Traders expect a key factor to be today’s ‘liberation day’ where the US will impose tariffs on imports. USDJPY - Traders Await Tariff Confirmation! Traders looking to determine how the USDJPY will look today will find it difficult to determine until the US confirms its tariff plan. Today is the day when Trump previously stated he would finalize and announce his tariff plan. The administration has not yet released the policy, but investors expect it to be the most expansionary in a century. President Trump is due to speak at 20:00 GMT. On HFM's Calendar the speech is stated as "US Liberation Day Tariff Announcement". Currently, analysts are expecting Trump’s Tariff Plan to impose tariffs on the EU, chips and pharmaceuticals later today as well as reciprocal tariffs. Economists have a good idea of how these tariffs may take effect, but reciprocal tariffs are still unspecified. In addition to this, 25% tariffs on the car industry will start tomorrow. The tariffs on the foreign cars industry are a factor which will particularly impact Japan. Although, traders should note that this is what is expected and is not yet finalised. Last week, President Trump stated that he would implement retaliatory tariffs but allow exemptions for certain US trade partners. Treasury Secretary Mr Bessent and National Economic Council Director Mr Hassett suggested that the restrictions would primarily target 15 countries responsible for the bulk of the US trade deficit. However, yesterday, Trump contradicted these statements, asserting that additional duties would be imposed on any country that has implemented similar measures against US products. The day’s volatility will depend on which route the US administration takes. The harshness of the policy will influence both the Japanese Yen as well as the US Dollar.   USDJPY 5-Minute Chart   US Economic and Employment Data The JOLT Job Vacancies figure fell below expectations and is lower than the previous month’s figure. The JOLT Job Vacancies read 7.57 million whereas the average of the past 6 months is 7.78 million. The ISM Manufacturing Index also fell below the key level of 50.00 and was 5 points lower than what analysts were expecting. The data is negative for the US Dollar, particularly as the latest release applies more pressure on the Federal Reserve to cut interest rates. However, this is unlikely to happen if the trade policy ignites higher and stickier inflation. In the Bank of Japan’s Governor's latest speech, Mr Ueda said that the tariffs are likely to trigger higher inflation. USDJPY Technical Analysis Currently, the Japanese Yen Index is the worst performing of the day while the US Dollar Index is more or less unchanged. However, this is something traders will continue to monitor as the EU session starts. In the 2-hour timeframe, the USDJPY is trading at the neutral level below the 75-bar EMA and 100-bar SMA. The RSI and MACD is also at the neutral level meaning traders should be open to price movements in either direction. On the smaller timeframes, such as the 5-minute timeframe, there is a slight bias towards a bullish outcome. However, this is only likely if the latest bearish swing does not drop below the 200-Bar SMA.     The key resistant level can be seen at 150.262 and the support level at 149.115. Breakout levels are at 149.988 and 149.674. Key Takeaway Points: Job vacancies hit a five-month low, and the ISM Manufacturing PMI missed expectations, adding pressure on the Federal Reserve regarding interest rate decisions. Traders await confirmation on Trump’s tariff policy, which is expected to impact the EU, chips, pharmaceuticals, and foreign car industries. The severity of the tariffs will influence both the JPY and the USD, with traders waiting for final policy details. The Japanese Yen Index is the worst index of the day while the US Dollar Index is unchanged. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • HLF Herbalife stock, watch for a bull flag breakout above 9.02 at https://stockconsultant.com/?HLF
    • Date: 1st April 2025.   Will Gold’s Rally Hold Strong as New Trade Tariffs Take Effect Tomorrow?   Gold continues to increase in value for a sixth consecutive day and is trading more than 17% higher in 2025. Amid fear of higher inflation, a recession and the tariffs war escalating investors continue to invest into Gold pushing demand higher. The trade policy from April 2nd onwards continues to be a key factor for the whole market. Can Gold maintain its upward trend? Trade Policy From Tomorrow Onwards Starting as soon as tomorrow, a 25% tariff will be imposed on all passenger cars imported into the United States. While this White House policy is anticipated to negatively affect European industrial performance, it will also lead to higher transportation and maintenance costs for everyday American taxpayers. The negative impact expected on both the EU and US is one of the reasons investors continue to buy Gold. Additionally, last month, President Donald Trump announced reciprocal sanctions against any trade partners that impose import restrictions on US goods. Furthermore, tariffs on products from Canada and the EU could increase even more if they attempt to coordinate a response. Overall, investors continue to worry that new trade barriers will prompt retaliatory measures, particularly from China, the Eurozone, and Japan. Any retaliation is likely to escalate the trade conflict and prompt another reaction from the US. Experts at Goldman Sachs and other investment banks warn that this will lead to rising inflation and unemployment. They also caution that it could effectively halt economic growth in the US.   XAUUSD 1-Hour Chart   The Weakness In The US Dollar Another factor which is allowing the price of XAUUSD to increase in value is the US Dollar which has been unable to maintain any bullish momentum. Despite last week’s Core PCE Price Index rising to its highest level since February 2024, the US Dollar has been unable to see any significant rise in value. Due to the US Dollar and Gold's inverse correlation, the price of Gold is benefiting from the Dollar weakness. Investors worry that new trade barriers will prompt retaliatory measures from China, the Eurozone, and Japan, potentially escalating the conflict. Experts at The Goldman Sachs Group Inc. believe that such actions by the US administration will drive rising inflation and unemployment while effectively halting economic growth in the country. Can Gold Maintain Momentum? When it comes to technical analysis, the price of Gold is not trading at a price where oscillators are indicating the instrument is overbought. The Relative Strength Index currently trades at 68.88, outside of the overbought area, since Gold’s price fell 0.65% during this morning’s session. However, even with this decline, the price still remains 0.40% higher than the day’s open price. In terms of fundamental analysis, there continues to be plenty of factors indicating the price could continue to rise. However, the price movement of the week will also partially depend on the employment data from the US. The US is due to release the JOLTS Job Vacancies for February this afternoon, the ADP Non-Farm Employment Change tomorrow, and the NFP Change and Unemployment Rate on Friday. If all data reads higher than expectations, investors may look to sell to lock in profits at the high price. Key Takeaway Points: Gold’s Rally Continues – Up 17% in 2025 as investors seek safety from inflation, recession fears, and trade tensions. Trade War Impact – New US tariffs and potential retaliation from China, the EU, and Japan drive uncertainty, boosting Gold demand. Weak US Dollar – The Dollar’s struggle supports Gold’s rise due to their inverse correlation. Gold’s Outlook – Uptrend may continue, but US jobs data could trigger profit-taking. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.