The Sky is Falling... Not Exactly
As we sit and still wait for a new trade to set up, the H1 chart does not look so good. It's not going in the direction that makes us want to take a trade..
BUT, looking at the D1, we see the truth of the matter:
We are still in a normal cycle. Still progressing downward, but riding the ebb and flow of the trend.
We're looking for a downward signal, and from there we can take a slightly oversized position to bring in a few extra PIPS.
On a follow-up note. As you recall from earlier posts, I noted a difference between two accounts with regards to the spread. After a lot of head scratching, the account with the better spread is leveraged 50:1 while the account with the larger spread is 20:1. I had thought I changed both accounts to be the same, but these were set up some time ago.
To change the spread on the 20:1 I am instructed to open a new account. Why? Unfortunately we never got that far into the conversation.
Regarding market news, this is a number that is concerning:
Pending home sales are down -7.1% as opposed to the predicted -1.1%.
Two main (and very large) factors are delivering a one - two - punch. The first is interest rates are the highest in 25 years. If you ask anyone who bought a home in the 80's they will tell you that you could have used a credit card and received the same rates of around 18%.
Pile on to the above numbers, we now have inflation to deal with. With inflation being significantly higher for everything across the board.
All things taken into consideration at this point, there is a third leg to this equation that deserves making at the very least a foot note, and that is Government Regulation.
Before I start, I want to let the reader know that this Blog is intended to discuss Forex trading, Economic news, and some odd fringe things to keep the discussion light hearted and fun. Politics being what they are if discussed are only items that are being reported from another source, and not an opinion that this Blog has derived as being gospel.
As two examples if things that will not be discussed in the context of this Blog are the Following:
"Yeah, If Joe Biden wanted to do his job, he would get out of the basement... that is if he can keep from tripping on the stairs on his way up."
and
"Sure, you could let Trump build the wall, but he's going to insist his mug shot is plastered every 20 feet so you know he made America Greater"
Both of those comments are providing zero value to the interest of making money, have no bearing on markets, and promote a canyon between parties.
With the ground rules laid out, I want to discuss PROP 12 in California.
PROP 12 in a nutshell states that any Pork bodied products (ribs, legs, hams, etc) excluding blended products (like sausages) that are sold in the state of California must each be raised in a cage or area of no less than 24 square feet of space per pig.
Meaning, if you raise pigs in Iowa that don't meet this standard, you will not be able to sell pork to California.
What does this mean for prices? According to AGRAtalk, farm news, this has raised pork products in California between 25% and 35% from a year ago. Nationwide, pork prices have increased by roughly 7% due to higher feed and fuel costs.
What does this mean for the consumer? higher food prices due to government imposed regulation.
When your country is facing economic headwinds, sometimes, creating laws that as an end result impose higher prices might not always be the best things to be doing.
However...
With regards to Government regulations, when it come time for implementation of rules like this one, although there is a positive side to be said about it, no time is a good time.
They said the same thing about leaded Gasoline.
... So, you want to take away the cheap leaded Gas, and make me pay for this non-lead stuff that costs more. well, when do you think raising prices will be a good idea?
Again, "There is no good time to do this. It just needs to be done".
So, when you consider the cost of things, and the economy of the nation, both of which are constantly moving, remember, Government regulation will always play a factor regarding the markets.
Remember Prop 12 when you buy your Ham for X-Mas and take note of the price.
SONG OF THE DAY VOLUME #9
Comments
Post a Comment