Annual break
Back on the 16th September
As mentioned last week, I will be off my desk this week and no report. I will be back on the 16th September and issue a report that evening. We will be looking to an incredibly volatile week with FOMC rate decision, Bank of Japan rate decision and Quad Witching.
My guidance for this current week is to take it easy out there. These equity markets are tanking and simply can not find a floor. Not the dip you want to start buying at the moment. The yen is also looking pretty hot, so we may have the double wammy of further yen carry trade unwinding.
I think we can at the least double the last week's losses of -4% on ES. This fits with what I have noticed about the last few sell offs over the years. The blood doesn't start really running until we move 8 to 12% off the local highs.
Looking forward to getting back fresh on the 16th and seeing where these markets are positioned ahead of the Fed decision. It's going to be a solid week.
Until then, keep it tight, wait for your edge to setup and stick to your risk profile.