I am continually amazed on power of pivots. Yes at times they can get crashed on powerful fundamentally driven market (virus,trade war etc)or thin holiday liquid times but in general I'll say 80% of times price adheres to pivots. Like on GU now
I am anticipating once Market opens next week with normal liquidity AU shall drop good chunk.It was driven up on thin liquidity by MM crashing stops but shall come down to earth specially that RBA will go printing money on greater scale.
I think this is just the beginning.
AUSTRALIA
MONETARY STIMULUS - The Reserve Bank of Australia cut rates in two steps (25 bps on March 3, 25 bps on March 19), taking the cash rate to 0.25%; introduced the first use of quantitative easing, setting a target of around 0.25% for bond yields.
LIQUIDITY OPERATIONS AND FUNDING - A A$90 billion ($56 billion) funding facility to banks at fixed rate of 0.25%; A$15 billion purchase programme of residential mortgage-backed and other asset-backed securities; A$715 million support programme for airlines.
FISCAL STIMULUS - A$66.1 billion in assistance for companies and additional welfare payments; A$17.6 billion in subsidies for apprentices, small businesses, pensioners and others; A$130 billion to subsidise wages of an estimated 6 million people.
I am anticipating once Market opens next week with normal liquidity AU shall drop good chunk.It was driven up on thin liquidity by MM crashing stops but shall come down to earth specially that RBA will go printing money on greater scale.
I think this is just the beginning.
AUSTRALIA
MONETARY STIMULUS - The Reserve Bank of Australia cut rates in two steps (25 bps on March 3, 25 bps on March 19), taking the cash rate to 0.25%; introduced the first use of quantitative easing, setting a target of around 0.25% for bond yields.
LIQUIDITY OPERATIONS AND FUNDING - A A$90 billion ($56 billion) funding facility to banks at fixed rate of 0.25%; A$15 billion purchase programme of residential mortgage-backed and other asset-backed securities; A$715 million support programme for airlines.
FISCAL STIMULUS - A$66.1 billion in assistance for companies and additional welfare payments; A$17.6 billion in subsidies for apprentices, small businesses, pensioners and others; A$130 billion to subsidise wages of an estimated 6 million people.
In trading, you have to be defensive and aggressive at the same time
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