Japanese stock market closed its last trading session of the year.  For NIKKEI average it was the worst ever year, with a loss of 42.1%. It may seem strange, considering that Japan didn’t have the same kind of credit problems as other countries. They had own real estate bubble back in 1989-1990, but even then stock market didn’t suffer this kind of collapse. Strange, but it goes to show just how interconnected markets are. Problems spill from one country to another, with, seemingly nothing to stop them.
While the equities in Japan had the worst ever year, Yen enjoyed a huge rally, much to the detriment of crowds of traders caught on a wrong side of the carry trade. Interesting correlation.
Two posts ago, in Opportunities, I touched up on EUR-GBP trade. I used 4H charts, with an entry at the end of a bearish candle.

The candle I waited for was completed right after I finished writing yesterday’s post. I went short at 0.9737 and 100 pips objective. Target was reached fast, for a nice gain. After that I was looking for reversal on 1H charts, but it didn’t happen. Instead, price made new high. Right now I’m planning another if the price dips under the low of about 0.9620 for 4H charts. If current candle will turn out to be bearish enough I might short it at the market again, with similar target.
After big moves on Monday, things are already slowing down before New Year. While I don’t expect much and want to be done before this time tomorrow, I’m placing few new orders.

One of them is a buy in USD-CHF at 1.0640, with 100 pips objective. Other Swissy crosses look similar, like AUD-CHF.
I’ll try to post something tomorrow and then take a day off to meet New Year.

Mike K.