Once again, the "ba ku teh" story. Not salty, add salt, not spicy, put more chilli powder and pepper, not enough water, add more water.......this is what exactly happening now, adding ingredient after water, water after ingredient.
Yesterday, ECB showed hand. They cut its main interest rate from 0.05% to 0% and cut its bank deposit rate, from minus 0.3% to minus 0.4%. The bank will also expand its quantitative easing programme from €60bn to €80bn a month. And the bond-buying programme will continue at least until the end of March 2017.
During Draghi speech, euro dollar fell, stock and future market spike. An hour later, they went the other way round. Example of DAX which gained around 3% became negative 3% We saw analysts came out to say.......oh because of this because of that.........
Let's take a look at past history. The last time Japan reduced their rate, market responded negatively. The last three times that China reduced their interest rate, market responded negatively as well. It seem like market (investors and traders) is sick of all the interest rate game.
What about QE? Whether was US, Europe or Japan, as long as QE, their respective market took new height/high. What about this time round? Like the past, positive and take new height? Or market is becoming sick of all this game?
What we saw yesterday, the spike and then turned around, euro dollars fell and then U-turned up, those were just how the big boys moved the market around. Big boys wanted to buy and they need seller, wasn't it? When you know another set of money is coming into the market what will you do? Buy or sell? If everyone buy, where the seller come from?
Next question, how long the possible rally may last? Will the respective market take new height? Not forgetting our big brother, 15 and 16-Mar FOMC. I don't think Janet Yellen is going to say US is going to raise another 0.5% interest rate on end Mar or so......nevertheless I still want to be on guard, in...case..... And of course, the other one, 20-Mar oil producers in and outside the OPEC exporting countries plan to meet in Moscow to discuss an output freeze.
Most important, monitor the big boys closely. The coaster ride will continue. Anytime, anything can happen. Know what you are doing. Do not listen to other. Enter a trade with good reason. Define your cut loss and of course knowing when to take profit. A lot of investors know how to buy but do not know how and when to sell. Profitable trade become.......buy at $10, sell at $3. So not forgetting this - knowing when to sell is more important than knowing when to buy.
Yesterday, ECB showed hand. They cut its main interest rate from 0.05% to 0% and cut its bank deposit rate, from minus 0.3% to minus 0.4%. The bank will also expand its quantitative easing programme from €60bn to €80bn a month. And the bond-buying programme will continue at least until the end of March 2017.
During Draghi speech, euro dollar fell, stock and future market spike. An hour later, they went the other way round. Example of DAX which gained around 3% became negative 3% We saw analysts came out to say.......oh because of this because of that.........
Let's take a look at past history. The last time Japan reduced their rate, market responded negatively. The last three times that China reduced their interest rate, market responded negatively as well. It seem like market (investors and traders) is sick of all the interest rate game.
What about QE? Whether was US, Europe or Japan, as long as QE, their respective market took new height/high. What about this time round? Like the past, positive and take new height? Or market is becoming sick of all this game?
What we saw yesterday, the spike and then turned around, euro dollars fell and then U-turned up, those were just how the big boys moved the market around. Big boys wanted to buy and they need seller, wasn't it? When you know another set of money is coming into the market what will you do? Buy or sell? If everyone buy, where the seller come from?
Next question, how long the possible rally may last? Will the respective market take new height? Not forgetting our big brother, 15 and 16-Mar FOMC. I don't think Janet Yellen is going to say US is going to raise another 0.5% interest rate on end Mar or so......nevertheless I still want to be on guard, in...case..... And of course, the other one, 20-Mar oil producers in and outside the OPEC exporting countries plan to meet in Moscow to discuss an output freeze.
Most important, monitor the big boys closely. The coaster ride will continue. Anytime, anything can happen. Know what you are doing. Do not listen to other. Enter a trade with good reason. Define your cut loss and of course knowing when to take profit. A lot of investors know how to buy but do not know how and when to sell. Profitable trade become.......buy at $10, sell at $3. So not forgetting this - knowing when to sell is more important than knowing when to buy.
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