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Short-Term vs. Long-Term

Short-Term vs. Long-Term

The broad markets are being dominated by market psychology. Sentiment is causing whipsaw like movements in many assets Can be stocks, commodities, indexes or Forex currency pairs. More and they are leaving ruin in their wake if you happen to be on the wrong side of the trade. FX, commodities, stocks and Indices are all producing abrupt trading with sudden reversals in what can be defined as a very technical The use of the term technical The use of the term technical The use of the term technical in trading usually refers to a variety of methods in which a trader or... More in trading usually refers to a variety of methods in which a trader or... More in trading usually refers to a variety of methods in which a trader or... More market for traders with a short-term outlook as they seek opportunities.

The GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More has taken the most obvious hit regarding value the past week and a half, but the EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More has also traded negatively against the USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More . This while safe havens such as Gold and the JPY The official currency of Japan is the JPY The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen to investors and t... More to investors and t... More to investors and t... More which is also knows as the Japanese Yen to investors and t... More have found plenty of takers who are seeking preservation with some speculative ambitions mixed in. Crude Oil has found itself under pressure along with other assets Can be stocks, commodities, indexes or Forex currency pairs. More which are a reflection of poor economic outlook.

However, there are always two sides of the coin. Two spheres which on the surface are battling each other. Those who see the problems of the economic data and have concerns about what the future holds and sell seeking profits via the down slope versus those who believe that today’s problems will find solutions long-term and believe that the markets will find better values for assets Can be stocks, commodities, indexes or Forex currency pairs. More that are needed and have proven over history to perform well consistently – in other words: buyers.

Traders who are experienced could actually be betting on both sides of the coin with hedged positions, using the ability to take off the weaker position and let the stronger one ride when the storm clouds pass. They can also take a short-term position and a long-term position at the same time with different outlooks, they can trade assets which mitigate risk and create equilibrium that can be taken advantage of as the markets trade and clarity starts to develop again.

As of this afternoon there are signs that traders are becoming less risk averse. The GBP has gained from its lows and on the other side of the spectrum Gold has slipped from its highs. Value seekers who have the ability to withstand the roller coaster which can cause bad emotional decisions can find opportunities with timely selections on assets. The GBP does look vulnerable as it trades at what are thirty-one year lows and bounces along critical support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More levels, but it also has the potential to be a long-term buy position if and when the ramifications and fears of the Brexit are digested and acted upon.

Tomorrow the Non-Farm Employment Change numbers will be presented in the U.S. and the ADP numbers which were already reported today did turn in a better result than expected. However, the Fed The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More ... More is the Central Bank of the United States of America and sets the monetary policy... More has likely locked the door on any changes to monetary policy for a while as it is essentially forced to concede to international concerns even if the U.S. economy suddenly shows improvement. While the USD is being used as a safe haven in the short-term, traders need to know the coin could flip suddenly if investors start to add risk to their portfolios as they seek more speculative long-term positions.