Happy New Year - SPIKE ON!
What just happened with the markets? Specifically the $audusd, $gbpusd $usdjpy and the $nzdusd. The biggest mover being the #yen pairs. Well we know that it happened on the 2nd day of the year, the markets were roughly 24 hrs into being opened and then this took place:
One thats for sure it the markets are not at it's full liquidity just ye so with this understanding it would be easier to push price a lot faster than when at normal trading volumes. So who is responsible for this? We won't know for sure until the #CoT data gets released incorporating todays data and when we finally receive it it will detail everything we need to know, if you know what to look for.
I get routinely asked if spike in price ever scare me. Truth is if you know what is currently in play and you have expectations of price based on this information, then you will come to realize that if there are ever any spikes in the markets they will always be in the direction the institutions were taking price previously.
In my previous report produced for White Oak University members only, I detailed how the institutions were overly exposed to the long side on the $usdjpy and that we should be expecting them to close off their longs causing price to drop, so what was essentially the expectation was a push lower in price until some new evidence was suggest otherwise and today we saw the drop take place, a much larger drop than anticipated but in the direction that was expected.
The bottom line here is if you follow what the institutions are doing with the markets you will never be surprised with price action no matter what plays out. Hope you were safe today with your positions!
Kevin aka Magic Trader!