Marking Major News Events On Charts

Mar 15, 2014
There have been a handful of key moments over the last several weeks; I’d like to review the biggest of them on a 60 minute chart, to really put them in context.

What I found quite surprising was the lack of higher time-frame “follow-through” in each instance of news. Draghi or Yellen might say something important and dictate the market direction over the following couple of hours, but the very next day – or soon enough anyway – the market retraces the whole move. It makes me wonder just how significant news is in the grand scheme of things?…

This is hardly a ground breaking call I'm going to make, but if I had to place longer term bets I'd go long ES now, simply on account of the Fed's ongoing commitment to lowering unemployment. I'd go short 6E bearing in mind Draghi's repeated commitment to accommodative action and the fact ECB are on stand-by to deploy the printing presses again.
I guess one of the major risks here is the accommodative policy of the Fed outweighs the ECB and 6E goes the other way.

BTW I have video clips on my blog showing screen recording of how various markets reacted to each news event, and many others besides (just a hobby of mine).


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