Tuesday, August 23, 2011

Volatility Continues

Markets were up 2% last night, and my long AUD/USD trades were cut short as the 2% gain quickly got reduced to break even on the session.
However, the volatility isn't as extreme as the 7% ranges we saw last week, and I get the feeling we are trying to form a bottom near the 1120 level in the sp500.

The asx200 major stocks like bhp, anz and wpl all held their line yesterday, despite ending slightly weaker, so I established a long position in wpl for the week ahead.

The market will be expecting some sort of magic bullet from Bernanke's speech on Friday at the central bank's annual meeting.

Gold continues to move higher on expectations of further monetary easing, being up 1.9% to 1894.