I'm the complete opposite, I think key news drives markets and if you understand it you can really profit.
Don't get me wrong I think charts are very important but to me, their use is normally related to entry and exit points particularly on the biggest of days or to get on the back of the largest market moves.
I'll give you an example. Australian fixed income opened pretty high today, I looked at some of the aussie bank bill levels and just laughed to myself. Why? QE3 had just been announced yet March bills (for example) opened at 97.00 which implies Aussie rates at 3% in march (excluding cost of carry). Yeah right, QE3 has just been announced, commodities will rise as the dollar falls, that means inflation rises for a country like Australia (where rates are currently 3.5%). Sell and sell more.....which is what I did. Another example is Draghi's, "we will do whatever it takes" to save the EU. Took off my EURUSD short and went small long. Waited for the ECB meeting the next week to scope out exactly how committed he was and there was enough detail to convince me that he meant what he said. Bought EURUSD and held, working for me at the moment.
Honestly, I think in the current central bank-tastic era that we are living in, not following the news is just (and i use my words carefully)...F**KING STUPID.
but then and again, there are many different ways to skin a cat so if not following the news works then great.
Don't get me wrong I think charts are very important but to me, their use is normally related to entry and exit points particularly on the biggest of days or to get on the back of the largest market moves.
I'll give you an example. Australian fixed income opened pretty high today, I looked at some of the aussie bank bill levels and just laughed to myself. Why? QE3 had just been announced yet March bills (for example) opened at 97.00 which implies Aussie rates at 3% in march (excluding cost of carry). Yeah right, QE3 has just been announced, commodities will rise as the dollar falls, that means inflation rises for a country like Australia (where rates are currently 3.5%). Sell and sell more.....which is what I did. Another example is Draghi's, "we will do whatever it takes" to save the EU. Took off my EURUSD short and went small long. Waited for the ECB meeting the next week to scope out exactly how committed he was and there was enough detail to convince me that he meant what he said. Bought EURUSD and held, working for me at the moment.
Honestly, I think in the current central bank-tastic era that we are living in, not following the news is just (and i use my words carefully)...F**KING STUPID.
but then and again, there are many different ways to skin a cat so if not following the news works then great.
