News background and trading ideas for 27/12/2018

27 déc. 2018

Yesterday was a day of release in the financial markets: the US stock market showed the maximum daily gain since 2009, oil prices soared, and for safe-haven assets - somewhat corrected. Such boosts of volatility in the absence of significant news are generally explainable: holidays and most of the parties in financial markets are resting. Accordingly, the liquidity is minimal - the so-called “thin” market. Low liquidity makes it possible to organize speculative attacks, which would require a lot of resources in case of a usual market, but they are possible in the case of a low liquidity market.

Considering the level of uncertainty in the financial markets, we would recommend trading very carefully - current conditions are perfect for the appearance of flash-crashes there.

What's going on financial markets it is worth admitting the increase of quotes of gold to 1275. What, however, is not surprising amid the background of a sharp increase in worries in the financial markets, as well as sales on the US stock markets and emerging economies. Recall that we began to recommend buying gold immediately after the asset broke through the resistance of 1235 and since then every day we have been following the same recommendation on the asset - to buy.

What also was expected and predictable it’s a collapse of the Russian ruble and we are a bears on this for a long time already. We have to note that the real potential of the pair USDRUB growth hasn’t even started its real progress. So until too late do not forget to buy the pair and make money on it.

It will be indeed interesting to observe today’s dynamic of the USDJPY pair: amid some low in tensions in the financial markets, there are certainly good chances on it correctional growth.

For the rest, we continue looking for points for dollar’s sales and monitoring activity in the USA.