Good morning traders!
It’s official, he’s in, congratulations to Donald Trump, he made it. Now what?
I watched most of the inauguration ceremony and if I am honest, the only things that stood out to me were 1. how scared he looked before walking out to address the crowds 2. how awkward he looked when Melania joined him, compared to how comfortable Obama looked, strange observations I agree. Then, of course, Jono Pie jumps in and just lets it all out, again. I won’t post the video, but here’s a brief summary of his feelings towards Trump (loosely translated):
He’s a brattish, sub-literate bragger, ill-informed, privileged, self-righteous, entitled, mummy’s boy. He is a hyper-sexed, gurning slug who mistakes brash for charisma, who thinks popularity matters more than integrity, that diplomacy has no place in politics. He’s a bloated, incandescent, lobotomized, sexual-predator. A paranoid and supremely unqualified demagogue, a massive 70-year-old cheese puff wotsit, with tiny wandering hands. An arrogant, ill-informed, oversized, umpa lumpa. A whinging, braying, misogynistic, know-nothing spunk-bubbler, fuck-headed egomaniac with a skull full of fetted shit smelling lies.
Brutal. Although I would actually pay good money to watch Trump have a conversation with Jono.
Anyway, moving on, how will this play in the markets. In my opinion, I think once Trump and his team have overcome their obsession with censoring the media and comparing crowd sizes from the inauguration, they will actually get to work and appear effective. They will outline their plans, their objectives, they will make lots of noise about it and I think they will get some early success. This will be good for markets. Perhaps the first month or so will give this impression. The true test will be how he handles the realisation of how much influence he actually has. I remain fundamentally bullish, for now.
Look out for the Draghi speech for steer regarding monetary policy today and the Markit PMI tomorrow, but the economic calendar is fairly light on high-impact news events for the first half of this week. My strategy this week is still one of “buying the dip”.
Dax Technical Analysis
We are still ranging between 11530 – 11630 and repeated breakout attempts have been rejected. The daily chart shows no real direction in recent days but is technically bullish above 11385. I have been watching the 11530 zone as a potential area to buy and the 11630 zone as an area to take profits, or perhaps selling back to 11530. The range is gaining strength and the longer it continues, the stronger it will remain.
There is really not a lot more to say about it at the moment.
This morning I had a nice trade:
The Trading Exchange, [23.01.17 08:39]
DAYTRADE BUY #GER30 @ 11534.75 | SL:11498.72 | TP:11642.84 | 2017.01.23 08:40 (GMT) | ID 60246643
The Trading Exchange, [23.01.17 09:31]
CLOSE DAYTRADE BUY #GER30 @ 11583.35 | PROFIT: 46.05 PIPS | 2017.01.23 09:31 (GMT) | ID 60246643
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Dax Support & Resistance
| KEY LEVELS | |
| Daily R2 | 11689 |
| Daily R1 | 11655 |
| Daily Pivot | 11601 |
| Daily S1 | 11567 |
| Daily S2 | 11512 |
| 200 Day EMA | 10676 |
Dax Charts
04 Dax m15 Chart
01 Dax Daily Chart
03 H1 Dax Chart
