Donald Trump Has Won the Elections


Donald Trump has won the elections to become the next president of the USA.

As a trader, I’m sure I’m alone in feeling a bit overwhelmed and wondering just how to handle all these wild market moves as the market tries to re-price itself in a direction nobody yet knows.

From the National Australia Bank’s morning note:

“US equities appear to have latched on to the idea that Donald Trump means more growth via an increase in fiscal spending.”

S&P 500 15 minute

S&P 500 15 Minute

So I guess that’s how you’d go about trying to make sense of the big intra-day V shape that price printed?

More from NAB:

“For the AUD, risk sentiment will be paramount. The prospect of tighter US monetary policy is a negative, but if equities remain buoyant, given a stronger US growth outlook, then this should provide support for ‘risky’ EM and commodity currencies.”

AUD/USD daily

AUD/USD daily

Again, do these sorts of explinations make sense of the price action?

This sort of explination has a very headlines for headlines sake feel to it and as a trader I have no conviction that there will be follow through because of the reasons given.

In saying that however, we are traders and I wanted to offer the one piece of advice that I always end up coming back to. That being: Can you ever go wrong trading intra-day off of higher time fram levels? With proper risk managment, the answer is no you can’t.

The fact that in Aussie, with all the panic selling in a direction that might not have been the most obvious, the major AUD/USD technical levels were still respected sums this up to a tee.

Take a deep breath and let things play out a little more before making any directional decisions. This is only the beginning.

This Thursday

NZD Official Cash Rate: -0.25% cut to 1.75% as expected.

NZD RBNZ Rate Statement

NZD RBNZ Press Conference

NZD RBNZ Gov Wheeler Speaks

USD Unemployment Claims

This is a guest post originally appeared on Vantage FX. Reposted with permission.

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