The weekly trade as posted Sunday: Short 115.83 and 115.91 to target 114.82. Long 114.82 to target 115.25.
Tuesday highs achieved 115.86 and today’s lows traded to 115.10. The trade runs +76 pips and 28 pips to target. Next hurdles below are located at 115.06 and 114.91.
Friday’s close price is expected from 115.32 to 115.49. USD/JPY for next week’s trade then becomes oversold. USD/JPY’s big break to target lower prices is located at 114.41 and a rising line. A rising MA line to price drops is a warning to an impending break to target 113.81 easily.
For next week’s trade, we’re looking at shorts in the vicinity of 116.08. The overall driver price to USD/JPY is a deeply overbought 5 year average at 109. 66. USD/JPY in the 116.00’s begins to hit the Richter scale extremes to overbought. The target to the 5 year average is located at 112.00’s.
USD/JPY overall contains a short only strategy as demonstrated over the past 12 weeks. The week began at + 1595 pips banked. This week’s trade results will place profits far above 1600’s and on the way to 2000.
Wal Mart WMT Daily Trade.
Individual stocks trade 1 and 3 points per day over 7 hours of trade. Skillful precision is required to day trade individual stocks. The same principle holds to trade interest rates as rates trade in tiny ranges over 7 hour periods.
A normal trade is enter and exit = profits. As demonstrated over the past week, vital levels to day trades were added to allow multiple longs and shorts per individual stock and stock index to enable multiple profits. The same principles were demonstrated over many years to day trade currencies.
Is the driver to price movements the overall stock index or the individual stock is answered statistically by the index and individual stock contains an equal chance to rise, fall or trade to tiny ranges. The difference between an individual stock and the index is zero. The difference between individual stocks is zero. The answer is found inside the distributions.
WMT contains a P/E ratio of 47 and SPX trades at a 27 P/E. WMT’s P/E ratio automatically signals a short only trade strategy as 47 should trade to at least 1/2 at 23 easily.
For the past 2 months, WMT traded a P/E ratio from 50 to 47 and 5 years from 60 to 15 in 2017. WMT to 23 will take quite some time. The driver overall is earnings.
Earnings or the E of P/E is scheduled for release today before the market opens. Estimates range from 1.49 , 1.50 and 1.51. P/E is offered as a fraction to signify Price divide by Earnings equates to a correct WMT price.
WMY Day Trade
Above 134.88, 134.61, 134.33, 134.05, 133.77 and 133.49.
Below 132.16, 132.44, 132.71, 132.98, 133.25 and 132.97.
Brian Twomey
BRIAN TWOMEY ON TRADING 