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It's been an interesting couple of days in the Aussie market, with some negative sentiment around combined with some important fundamental data.
I really enjoy trading when there is that hint of negative sentiment in the air as it can lead to some pretty biggish moves, which is what we've been seeing.
Recently we've seen the price of iron ore really fall away quite heavily. There are also increasing reports about Chinese property weakening all combined with low consumer confidence on the back of a less than well received federal budget. Yesterday was RBA day and today we had GDP.
When we get these environments my trading plan starts getting pretty simple. I'm just looking to get short on pullbacks with my usual formula.
There have been some good spots and I've been quite active.
There was a boost with higher than expected GDP and that saw a bit of bounce but that was short lived.
Back into it after a couple of weeks off. In that time I re-jigged my trading a little in terms of my focus and my structure (if you could call it that).
I also moved house and now have an amazing internet connection - at least by Australian standards. Our internet is awful compared to the rest of the world.
I can't describe how much joy a good connection brings me
Anyhow...
It was a day of early selling in the Aussie SPI today.
I grabbed a couple of nice pullbacks right off the bat.
From there things got a little trickier...
There was an obvious downward bias - however the market refused to really pullback all that far. I hate trying to jump on a pullback when it's 2 ticks off the low - there's just too much room for it to go against you hard when people cover and stops trigger.
I ended up getting a little churned at the bottom. There was some really good volume down there and it looked like we had come to a bit of a bottom so I just wanted to play the ranges a bit. It was a little tough to find a nice entry for me however.
I found a nice MP range later good for a a couple of ticks as the market started to slow.
Bonds drifted higher ahead of the RBA action tomorrow - won't be expecting too much there other than some more talk really.
End of the half/quarter/financial year today so might be worth watching the close - could be some good action and size about.
Well it was RBA rate decision time and it turned out to be a tricky day.
I actually enjoy trading on days when there is big data due out. The main reason being that I don't often expect price to bust out of its range in a big way.
So that was my mindset going in...
After we had developed a bit of a range we broke out to the upside and I saw around 200 contracts printing which made me think we had a bit of a top in the action. I got short for a nice winner.
Then I saw the same thing at the bottom after it came all the way down. This time it looked like it might revert, but it didn't and really blew through hard.
After that the action started to get really thin. What I mean is that you might see 5 contracts print at a price then it would jump 3 ticks the other way. It was thin and impossible to get a read on so I really could only sit out from then. Just not tradable given my style.
After the RBA left rates unchanged (as expected), the dollar really rallied as they didn't talk it down as many had expected as it's what they've been doing a fair bit of. The SPI didn't do all that much though. Bonds came off a touch in response.
After the strong lead from Wall Street overnight, the Aussie market powered on this morning.
There was a quick run up early that I didn't get on and I was eying the first PB I could. We got a good one at a nice MP spot and I was targeting the 5400 area. It traded exactly to 5400 but I got out a couple of ticks prior.
I wanted in on the next pullback but unfortunately I stepped up a touch early. I ended up getting stopped to the tick and it didn't even go offer. Must have been a little jumpy.
From there I kept on targeting solid MP areas. I got one and lost one. There was a bit of buying late post the number.
Trade balance saw Aussie sell off and bonds rally a touch. SPI was slow to follow suit.
