Time to resurrect this thread, just read a post that 90% of traders fail and that 90% of education is about ‘price action’ - not sure how such info is gathered and could well be one of these urban myths.
Anyways yesterday was a huge mover in the market - most guys know the reason.
Movers in the market don’t start with ‘institutions’ or ’ big money’ or billionaire car makers - the top of the tree is the Central Bank and the top of the CB’ers is the Fed, and the top of the Fed is it’s Chairperson - currently one Jerome Powell.
So when Mr Powell was scheduled to make a speech at Jackson Hole the market stood still.
Then he announced that despite recent numbers the Fed is declaring war on inflation - and it’s primary weapon is interest rates.
The market was not ready for such a declaration, the sense was that the numbers would stall the Fed, maybe soften it’s approach now that inflation appears to have peaked.
Raised rates good for USD ( better return in USD investments) but bad for stocks (increased costs to the profit & loss)
So Wall St looked like this:
Eur/Usd did a wild flutter - so always thinking ahead - how will USD behave next week - up or down?