Week of: 04/18/22 – 04/22/22
The World Wealth Gauge is showing us negative readings this week and I’m not surprised by that.
As I’ve been saying – it’s a confusing market with massive headwinds, inflationary pressures, and geopolitical tensions. And we’re also seeing boom and bust events with the stock of Netflix tanking down over 36% in a single day. That’s almost $40 billion of market cap wiped out in a single day!
I believe this is not a one-off situation. There are many cracks in the economy and we will be seeing more and more of these events in the coming time. That’s because the market is ridiculously overbought and any negative news could spoil this party and lead to a major fall.
However, it’s also going to be a fantastic time for someone who knows how to trade this volatility to capture potential profits.
What are we going to do in this market environment?
Well, I’ll stick with my favorite trade on the AUDJPY because I think it has the potential to pay us handsomely.
The currency pair is currently sitting at all-time highs. And high time prices are often followed by lower prices. Therefore, I want to sell the AUDJPY.
Here are the two trade setups –
- If you’re not in this trade, a conservative option is to sell on a break below 93.05. The target here can be at 76.50 with a stop set at 102.85. (Note: We saw this trade last week but I’m raising my sell level to 93.05 from 90.75 last week and also the stop-loss at 102.85 level from 94.30 last week.)
- For ones who’ve been following this trade, here’s our original trade setup…
Sell at 90.06, 94.50, 97.25, and 100. Our average price, if we sell at these four levels, will be 95.45. My profit target on this one is at 76.50. The average risk with this trade is 745 PIPS, while the reward comes to around 1,895 PIPS –phenomenal in my view.
Check out this week’s video for all the strategy details.
And for more tips and picks, you can join me in my Money Flow Trading Room. It’s where I talk about market and trade strategies every week.