SHORT (SELL)
โ ๏ธ Elevated volatility; 3/5 position size
TP
Recommended Entry
(correction)
โบ The Nikkei closed slightly lower in regular trading, but moved into profitable territory in after-hours trading. Support came from gains in the chip sector - including in New York - as well as from a weaker JPY. In US pre-market trading, we are also seeing some rotation away from Wall Street into other markets. Overall, the Asian session was mixed, although Korea saw an impressive rebound: the KOSPI recovered from a sharp opening drop and closed higher, supported by share buybacks from Samsung and SK Hynix despite concerns about potentially tighter monetary policy in the US again.
โบ Renewed military tensions between the US and Iran over the weekend increased risk aversion and pushed global oil prices more than 3% higher today. While we see further upside in oil as limited, this is a headwind for the Nikkei.
โบ We are generally seeing thin trading today on the final day of August - a month that was positive overall for stocks. Investors are likely to make only smaller bets today. UK markets remain closed for the August Bank Holiday.
โบ Rate hike expectations have edged slightly higher further. The majority of analysts and investors now expect a Fed rate hike later this month.
โบ Chip stocks are trading positively overall in US pre-market trading - the rest of Wall Street is notably weaker or negative, including consumer stocks and even defensive names.
Nikkei 225: Multiply your โstandard (EUR/USD)โ position size by approx. 130โ150x (13,000โ15,000) if the contract size = 1 (!!!). Adjust accordingly if your broker uses a higher contract size (e.g., if contract size is 100, divide by 100) โ 3/5 position size.
position code / 100% Transparency - 26083102A
โฑ๏ธ Signal / Update is DELAYED
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