China Launches CNY500 Billion In "Stealth QE" | Forex Factory

China Launches CNY500 Billion In "Stealth QE" | Forex Factory

China Launches CNY500 Billion In "Stealth QE"

From zerohedge.com

It has been a while since the PBOC engaged in some "targeted" QE. So clearly following the biggest drop in the Shanghai Composite in 6 months after some abysmal Chinese economic and flow data in the past several days, it's time for some more. From Bloomberg: CHINA’S PBOC STARTS 500B YUAN SLF TODAY, SINA.COM SAYS PBOC PROVIDES 500B YUAN LIQUIDITY TO CHINA’S TOP 5 BANKS: SINA Confused what the SLF is? Here is a reminder, from our February coverage of this "stealth QE" instrument. * * * The topic of China's inevitable financial crisis, and the open question of how it will subsequently bail out its banks is quite ... (full story)

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Sep 17, 2014 5:51am

With FOMC news later today, price seems to have gone into consolidation for now. Price could go either way(spike up for another possible sell opportunity or just continue down from it's present levels). For me, it's not worth the risk of losing what I already have...so I'm closing my short that I opened yesterday's afternoon for +35. Time to be patient and see if the market gives me another entry opportunity. Trade Smart today folks!

Sep 17, 2014 6:47am

Quoting palinco

Disliked

nice advice, but for some traders with large -67 it is difficult to close trade just like that.

Ignored

Ouch, that's not good. I'm not sure what trading style you are using...but for me, I keep my loses around -15 to -20pips a trade. Hope you're able to get out of that trade later today!

Sep 17, 2014 7:06am

Quoting Guest

Disliked

i'm almost on mc, this will be the last betting for my account, if it will go long for A/U, hope USD will gain it's strength in FOMC meeting and AUD continue bearish :'(

Ignored

This isn't good. I'm sure most of us traders started out this way in forex...get rich quick, max leverage, not willing to take a small loss, betting the farm on one trade, etc...

Eventually traders have to get out of this mindset, to be profitable you have to treat your trading like a business. It's not betting or gambling...it's your hard earned money you're trading with!

You have to understand that no one is perfect and you'll have to accept that you'll have a losing trade. Even if you plan accordingly, have the perfect setup, and trade your plan exactly...sometimes the market just goes against you. Recognize when a trade isn't working out for you and take a SMALL loss. Don't let it turn into a BIG loss!

Hope it works out for you!

Sep 17, 2014 7:30am

Quoting palinco

Disliked

nice advice, but for some traders with large -67 it is difficult to close trade just like that.

Ignored

You can do it!

I closed a long Cable position just before the weekend at -200 pips, but then I am not using much leverage. If you have a 20:1 or even a 10:1 trade leverage then it will hurt, I concede.

So your choices are: wait (and think while waiting, look at charts) to see if the market will move in your preferred direction; put a nearby stop before the CPI or other news figures move the market against you; or close now and spend time thinking (seriously) about why you got into this trade in the first place.

Good Luck

Sep 16, 2014 11:23am

Quoting Pipsforall

Disliked

Anyone know why this impacts the USD? I thought the risk on trade was over. haha I still think it is, this is just taking out stop losses.

Ignored

Flight from USD to "risk-on" currencies ... .

Sep 16, 2014 12:18pm

Quoting Guest

Disliked

If China prints more money, it will spur economic activity and will benefit currencies such as AUD and NZD. Besides, it is not a sure thing that the FED will raise the rates anytime soon. But this China QE is already a sure thing. So I'm long NZDUSD and will close before the FED meeting. BUt if the FED is less definite about the timing of the rates, NZD and AUD will recover.

Ignored

Perhaps. Too simplistic for me. Selling rallies personally. Let's see.

Sep 16, 2014 12:01pm

Quoting ZebraSquirl

Disliked

Flight from USD to "risk-on" currencies ... .

Ignored

Yeah, I just don't get the correlation about China printing money weakening the USD. The Fed will continue to taper and be done this year, so I don't get how China printing more money will weaken the USD pairs when the FED is stopping the printing presses. Anyways, I took this sell off as an opportunity to add to dollar longs. We shall see if the FED creams me tomorrow. lol

Sep 16, 2014 10:55am

SOLD millions of usd/cad

Sep 16, 2014 11:27am

Why is it called 'stealth QE' ?

Sep 16, 2014 5:02pm — Edited

I agree with some of those above...sold at .9100

Sep 16, 2014 10:56am

usd is loosing ground

Sep 16, 2014 10:57am

hahaha...amazing..thats forex...in the blink of the eye

Sep 16, 2014 12:07pm

Massive news. Selling AUD. Interventon is in play. IO raliied yesterday but not enough to satisfy RBA. careful bulls.

Sep 16, 2014 10:38am

anyone can translate?

Sep 16, 2014 10:42am

ah they added the article now thanks

Sep 16, 2014 10:51am

bought some at .9031, sometimes staring mindlessly at the 1min chart pays off ...

Sep 16, 2014 11:43am

Quoting Exodus

Disliked

Why is it called 'stealth QE' ?

Ignored

Makes one wonder why "stealth" when it's all over the news lol.

Sep 16, 2014 11:07am

Anyone know why this impacts the USD? I thought the risk on trade was over. haha I still think it is, this is just taking out stop losses.

Sep 16, 2014 7:26pm

They delayed the Chinese housing bubble. They made it bigger. The answer to bad loans are more loans . Hilarious

Sep 17, 2014 6:28am

Quoting PA is King

Disliked

With FOMC news later today, price seems to have gone into consolidation for now. Price could go either way(spike up for another possible sell opportunity or just continue down from it's present levels). For me, it's not worth the risk of losing what I already have...so I'm closing my short that I opened yesterday's afternoon for +35. Time to be patient and see if the market gives me another entry opportunity. Trade Smart today folks!

Ignored

nice advice, but for some traders with large -67 it is difficult to close trade just like that.

Sep 16, 2014 10:56am

nice aussie~ go aussie~~~~~~~~~~~~~~~ and thanks for chance to sell EUR/USD haha

Sep 16, 2014 11:04am

switching my aussie position to bearish ~~~~~~~~``

Sep 16, 2014 11:10am

Quoting Pipsforall

Disliked

Anyone know why this impacts the USD? I thought the risk on trade was over. haha

Ignored

all the time forex risk is never over

Sep 16, 2014 11:59am

So let's buy aud

Trader#2A1B

Sep 16, 2014 12:09pm

If China prints more money, it will spur economic activity and will benefit currencies such as AUD and NZD. Besides, it is not a sure thing that the FED will raise the rates anytime soon. But this China QE is already a sure thing. So I'm long NZDUSD and will close before the FED meeting. BUt if the FED is less definite about the timing of the rates, NZD and AUD will recover.

Trader#83DF

Sep 17, 2014 12:56am

As remarked elsewhere yesterday the AUD is in corrective play at the stage with the immediate objective seen as 0.91463 and some reasonable potential of reaching circa 0.92407 (based on current readings of vector updates) at which point swing sellers should consider reselling for the medium term to a lower handle than the 0.90000 handle. Any drop at this stage to circa 0.90302 might be reasonably seen as a good buying opportunity for the last legs of the said corrective play. Overall it is our assessment that the AUD remains downfalling and it bears reminding that the scale of the turn down is Unitary and as such long-term. Just my o.69000 Cents (AU).

The Crow (-_-)

Trader#1AF8

Sep 16, 2014 10:39am

Chinese version of TLTRO it seems

Trader#0300

Sep 16, 2014 10:53am

Up up n away.... high impact. yahooo...

Trader#9CC1

Sep 16, 2014 11:17am

Quoting momochi

Disliked

anyone can translate?

Ignored

printing money

Trader#7959

Sep 16, 2014 12:12pm

Quoting Pipsforall

Disliked

...add to dollar longs. We shall see if the FED creams me tomorrow. lol

Ignored

we are in the same boat now!

Trader#15C1

Sep 17, 2014 6:21am

i'm almost on mc, this will be the last betting for my account, if it will go long for A/U, hope USD will gain it's strength in FOMC meeting and AUD continue bearish :'(

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Sep 16, 2014 10:31am
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