BOJ Rate Hike Causes Unrest in the Stock Markets: What next?When the Bank of Japan hiked its interest rate at the end of July, global markets went into turbulence.
We will discuss what currency carry trade is, why the yen carry trade has caused this global volatility, and, importantly, whether the market will resume its uptrend.
Micro E-Mini Nasdaq Futures and Options
Ticker: MNQ
Minimum fluctuation:
0.25 index points = $0.50
Japanese Yen Futures
Ticker: 6J
0.0000005 per JPY increment = $6.25
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Techselloff
NOW is a buy after a down tech stock day LONGNOW is on 15 minute chart with a volume profile overlaid and relative volume and volatility
indicators below the chart. NOW had a good earnings beat late January. It is halfway to the
next earnings. I think right now software stocks are hotter than hardware/ networking stocks.
NOW got dragged down by technology headwinds into its support and the fall got rejected
by buyers near to the close of the regular market hours. The lower VWAP bands are confluent
with the support zone and confirm deep oversold and undervalued stock price.
I believe this is excellent for a long trade perhaps lasting until the run-up before earnings is
6-7 weeks through the buy of a small lot of shares or a call option expiring at the May or June
monthly in the range of $750 ( OTM). This will complement existing positions in CRM
CRWD and PLTR.
10YR could be over 2% by 4Q21Economy is recovering quickly. 10YR is expected to hit 2% sometime this year, I suspect it to occur near the end of the 3rd quarter; so the end of summer. Not only will everyone be vaccinated backed by warm weather, low infection/death rates, and reopenings in full-force, we will have less unemployment and a stronger economy leading to higher yields. This could lead to a panic-sell off in risk assets/low-yielding assets.
This year is expected to be choppy and this should cause a whole lot of chop as portfolio rebalancing into fixed income picks up.
