Something pretty interesting happened when the DXY ( U.S. dollar index ) is inverted, and split chart next to the US500, a derivative of the SPX500 that trades within the construct of the OTCC markets and is a good 24/5 proxy. This being said, all of us in the FX market-- rather we like it or not-- are at the mercy of the SPX . The SPX is the most highly speculative instrument in the world. Speaking as someone who was complaining about the 12 year low ATR's the Euro was compressed to this time last year (July of 2018), I welcome the ability to trade speculation, at least there's some volatility we can get a bite at.
Can we can make more informed trading decisions for the U.K. and U.S. sessions as forex traders by paying attention to the equity market; or is it the other way around?
Just a theory.. should Trump resign--in a manner of 'dropping the mic-- with national polls suggesting Biden have over 10% leads in many very critical states for the entire Republican game plan. Now, if Pence takes over to fight Biden , I could care less to speculate; I will be here trading and making money regardless of who's president. What if..the market has been pumped by Pump and friends (Kulow, Mnchin, Powell), --and he essentially dumps.. that would make this just another pump and dump?
Hi Tay, would you consider this to be bearish day Monday as well?
TayFx
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@shantty0926, I will be using this directly with my strategy trading FX pairs, specifically ones that are dependent and at the mercy of the USD
TayFx
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Yes I am extending new lows for the equity markets, especially spx, which will correlate with a bullish dollar from here, which powell and pump are not going to be happy with @shantty0926,
shantty0926
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@TayFx, I see, thank you very much. My daily chart did show a bearish movement as well but the weekly showed a bullish movement. So I wasn't quite sure. Now I know I'd be shorting SPX on Monday. Thanks Tay.
TayFx
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@shantty0926, I would stay away from the SPX and SPY
TayFx
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@shantty0926, much more higher probability setups and indices.