The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Equity indices closed at their lows of the week in Friday's session, creating potential trading opportunities when Asian markets open Monday.
Bond markets have calmed down (relatively speaking) in recent trading, but they continue to signal potential equity market weakness.
Currency markets have held the dollar index around a major swing point at 73.90.
It is the bullion and precious metal markets that show the greatest potential for a sustainable move if economic outlooks remain unclear.
The halcyon days of equity buy-and-hold have been torpedoed by a loose policy towards debt and spending. Payback hurts. The normal pattern of low-volume ramps higher with high-volume reversals will not be going away anytime soon. Bank early and often.
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We offer our Trade Plans are available to clients on bullion, equity indices, major currencies and ETFs, and all show near-term potential.
We will issue Market Updates and Trade Signals once Asian session momentum is seen and price action moves look sustainable.
International markets took another equity leg lower on the last trading session of the week. Positions will not be carried into the weekend. The
Trade Signal from 1180 hit its targets at 1165 and 1150. Consolidation and volatility may evolve around 1120 support.
After moving more than $80 to test $1,875, the long-gold Trade Signal is now closed. The long-10-year note Trade Signal covered 100 points.
The headline that Venezuela is repatriating gold deposits from overseas has created bullish futures contract backwardation. The near-term gold contract is trading at a higher value than longer-term contracts, creating a short-squeeze regarding near-term supply concerns.
The Australian dollar/yen (AUD/JPY) and pound/dollar (GBP/USD) Trade Signals both hit their near-term targets and are closed. The dollar index continues its choppy trade pattern.
The Swiss franc (CHF) and yen (JPY) remain steadfast in their appeal as safe-haven currencies, not allowing any form of intervention to take hold.
The Australian dollar, Canadian dollar (CAD), pound and euro (EUR) are aimlessly trotting along each day, only moving in reaction to regional breaking news headlines.
Welcome to the globalized investment arena, where reactions are quicker, fallout is harder and attention spans are smaller. Now more than ever before is the time that a sound alternative support program should be implemented by all investors. Having exposure to global market ebbs and flows on a 24-hour basis allows the roller-coaster rides to be negated. Foreign exchange and futures reign.
Marco Hague is one of the founders and principals of The London Forex Broadsheet (commonly known as TheLFB), a global forex trader portal with headquarters in the U.S. Hague began his career with the Bank of England dealing with foreign exchange control, and he has been trading for the last three decades. He has been involved with institutional risk asset ratio analysis and the implementation and maintenance of institutional trade desks globally.