I figure I need to make a continuously updated post on USD.JPY too, with such a heavy carry-trade position … and a huge shift in the past few days.
So here it is and I’ll copy some main points from previous post in here first.
Author Archives: lytstephen
US equity market breadth widen + rotation
So at the drop last Friday (12/7, thurs in the U.S.), the interesting thing is the small and mid caps actually rose. By a lot.
RUT was +3.6% while NDX was -1.6%, so that was a super clear sign things are “rotating”.
Why and what’s my next move?
Trap of confusing investing and trading + New organization
So I thought I was very clear about the difference between investing and trading … turned out I was wrong.
I saw from a technical standpoint that both US and JP market might have a big run up, so I added positions to both.
But after a huge drop yesterday I got scared and cut some positions – which is OK as a trade, but the sizing was perhaps a bit too big.
Importance of Gold and long-term US bonds
So last night the CPI data came out – lower than expectation.
Not even that low, but the Sept rate cut probability rose from 70% to 90%. 10-year rates dropped 2% in a matter of hours.
USD.JPY dropped 2% and the market dropped 2% as well. JP market dropped 1.5% as of 9:15 this morning.
Investment 20240712
Quite a huge past month and I wished I’d update this more often.
Super busy month though with family visiting so I figured today is a good day to update with the huge market change yesterday.
Notes on identifying breakout
As I’ve dug more into technical analysis, it seems a style that I am gravitating toward is just buying one big wave up, then staying put on those sideway moves and wait for the next breakout.
To succeed with this strategy I think there are 4 things that need to be mastered …
resistance becomes support … market sentiment and logic behind
So I’ve been learning about the basics of support and resistance … and a big theme is resistance is hard to break, but once it break through it’ll move dramatically and usually the past resistance will become the future support.
On the graph it looks nice, but what is the logic behind that?
I’ve just gotten a better picture of why that happens … and understanding the why can be very important for understanding more about market sentiment and price actions.
Initial thoughts on swing trading after learning for a few days
Alright so I knew day-trading probably isn’t quite right for me, but swing trading on the other hand sounds just like my cup of tea looking from the outside.
Anyway the fundamental skills for both are probably similar and I want to make some remarks for myself and what I’ve learned so far plus my thoughts.
Questions I have as an investment beginner
Just want to keep track of what kind of questions I’d have right now or earlier as a beginner …
so as I learn more I’ll create content and answer them for other beginners.
Timing for buying long term U.S. bonds/notes
So when I first started investing, the question of whether to buy short term bills or longer term notes or even bonds (5-10yrs+) was a big question on my mind.
A friend with some investing experience said he’d just “mark the market” and wouldn’t buy longer term notes.
That kind of made sense and I’m glad I didn’t go into longer term bonds without fully understanding the consequences.
Now that I have a better understand, just got the idea from a video about perhaps when I might move into some longer term bonds.