Daily Plan 11.21.23
Markets Close Higher - What's Next?
Welcome back everyone!
Today's trading session was nothing short of tremendous, with nearly everything aligning perfectly with the predictions from last night's Flow States release!
Firstly, I'd like to highlight the new addition of currency coverage, particularly focusing on the Canadian Dollar and the Japanese Yen, both of which have shown strong upward movements. The Yen, my primary focus, has risen significantly, and I believe this rally is just the beginning. It's important to note that the Yen's strength is negatively correlated with the USD, suggesting that we might see continued selling pressure on the USD as long as the Yen maintains its strength. Now, let's shift our attention to the Indices.
As I mentioned in last night's post, my main focus was on a stronger move from the Dow and the Russell, and this expectation was met with the Dow rallying robustly and the Russell experiencing a somewhat weaker, yet still notable, thrust upwards. Additionally, both the Emini and Nasdaq reached my long targets, showcasing a remarkable rally to the upside. In the commodities market, Gold and Oil not only met but exceeded my long targets, demonstrating the extraordinary strength that was anticipated by yesterday's order flow analysis before today's session.
This session was stunning, defying expectations of possibly subdued volatility. Tonight, I will post my expectations for tomorrow's session, analyzing whether we might witness a continuation of rising prices or if there are early signs of a larger selloff on the horizon. As always, market structure will be the key guide in these decisions, providing a roadmap for interpreting market movements.
Looking ahead, it's crucial to stay attuned to the subtle shifts in market dynamics. The interplay between various asset classes, including currencies, indices, and commodities, offers a rich tapestry of information for informed trading decisions. Understanding these relationships and how they evolve in response to global economic events will be pivotal in maintaining a strategic edge in trading. Stay tuned for more insights and analysis, as we navigate these exciting market conditions together.
Let’s dive in!