Every day I dissect the news of the day into bite sized snippets using Tweets I find on Twitter. My goal is to make sense of the news so that the reader has an easier time understanding it better and thus better placed to use that information more efficiently.
For those of you who may not have the time to follow my blog everyday I will post up an omnibus every weekend for your convenience to catch up. So let's jump right into thing;
Monday 21st September 2015
Samurai Summary: 21/09/2015
Top Tweets Today:21/09/2015
Tribute to Mark Douglas
I reported on Monday that following Alexis Tsipras election victory on Sunday we would likely see more pressure on his government by EU leaders who have been struggling to get full co-operation from him in avoiding a debt crisis which hinges the well being of the entire Euro Zone. Greek voters helped secure Tsipras a comfortable 40% majority win with this being the third hurdle cleared in less than a year, the previous 2 being the decisive prime minister election he won to snatch away power from an opposition together with the crunch referendum vote.
I also posted a tribute to the late great Mark Douglas, who passed away earlier in the month. I gave account of the first trading experience I encountered with my emotions riding along the way and described how identifying the importance of emotions in trading helped me begin my journey to trading success, something I believe Mark started when I read his outstanding book, Trading in the Zone. His insight in the field of trading psychology will sorely be missed.
Tuesday 22nd September 2015
Samurai Summary: 22/09/2015
Top Tweets Today:22/09/2015
It's been a tough week for carmaker Volkswagen AG who admitted over last weekend that they had deceived US emission regulators by installing software on the car's computers which gave out inaccurate readings to the emissions being produced by the car. The story started developing on Monday but continued into Tuesday with the share price in Germany falling as much as 38% from Friday's close. The level of seriousness of this admission is such that prosecutors may be obliged to institute criminal charges against those who are held responsible as if this the least of the company's worries as it's now left with a reputation in tatters.
I used the opportunity to highlight some trading wisdoms around the Twittersphere because I thought that in the tough market environment we've been experiencing there was bound to have some positive to take of of it. From issues of overtrading to flawless accounts of the markets memories were just some of the topics I decided to discuss.
Wednesday 23rd September 2015
Samurai Summary: 23/09/2015
Top Tweets Today:23/09/2015
I highlighted an interesting chart drawn by Aksel Kibar CMT, who showed that the MSCI All Countries Index is stalling around a very important resistance mark on a monthly basis. This is worrisome as it could indicate the global appetite for stocks may be waning but also that if it fails to overcome it, it may result in world equities falling into a sideway market for a number of years to come. The index is traded in dollars which may have had a hand in slowly down impressive momentum the index has seen since the lows of the Financial Crisis in 2009.
Mario Draghi reiterated that he is willing and able to prop up the level of quantitative support of the euro zone economy if needs be as the trading bloc battles with severe bouts of deflationary activity. The comment was much expected by many participants by came as a relief because it creates the possibility of an extension to the program which is scheduled to end next year September. Draghi also said he needed further evidence from economic data that a need for more stimulus is warranted. It's my belief that the market has become too accustomed to zero percentage interest rates which can't be healthy in the long term as policymakers are only delaying the inevitable further along the line.
Thursday 24th September 2015
Samurai Summary: 24/09/2015
Top Tweets Today:24/09/2015
The guys over at ZeroHedge presented a very good case as to why Volkswagen AG may be in for tough times but also the ripple effect it could have on the German economy that prides itself on its automotive engineerity. They go on to show how the company is sitting with abnormally high levels of finished inventory, much higher than that of 2008/09 when the Financial Crisis took hold of the world. They explain that automakers have been expanding production rapidly to tap into the Chinese market but with the recent turndown things have been going sour.
Are indicators a trader's' best friend? It depends according to TradingBuddy.com who says that in the current market environment a traders edge is not only his/her ability to execute based on indicators but rather the way they interpret the indicators in this particular environment. I've mentioned a few times over the past 2 weeks that things are getting difficult and suggest that it may best to take a sideline view for now while the markets resolve themselves.
Friday 25th September 2015
Samurai Summary: 25/09/2015
Top Tweets Today:25/09/2015
Janet Yellen spoke after the US markets closed on Thursday evening presenting a clearer outlay of how she sees the Fed lifting rates over the course of time. She stated that she still expects the Fed to begin hiking this year with only 3 months left but also said that the Fed had no way of how aggressive the headwinds from external headwinds eg China would be and their likely impact. The market seemed to take a sense of comfort from it with indices opening in the green after a horrendous week.
I also commented on the current weakness being felt within the emerging market currencies as a result of speculation over the Fed's intended hike. It has caused much of a stir but not as much as the Chinese devaluation of the Yuan last month which sent shockwaves reverberating through the global financial system. I think this space may still be a hot topic of discussion for the next few months and the actions of the central bankers in those countries will be telling of the fate of many of their currencies.
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