{"id":20520,"date":"2011-04-05T20:52:34","date_gmt":"2011-04-06T00:52:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20520"},"modified":"2011-04-05T20:52:34","modified_gmt":"2011-04-06T00:52:34","slug":"how-to-play-the-stock-market-when-they-keep-changing-the-rules","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/04\/05\/how-to-play-the-stock-market-when-they-keep-changing-the-rules\/","title":{"rendered":"How to Play the Stock Market When They Keep Changing the Rules?"},"content":{"rendered":"

How to Play the Stock Market When They Keep Changing the Rules?<\/a><\/span><\/p>\n

By Aaron Tyrrell<\/strong><\/abbr><\/p>\n

I\u2019ve got a cousin who likes to play board games. But no one will play with her. Because she has a habit of changing the rules as the game goes on\u2026<\/p>\n

I\u2019m sure you know the type.<\/p>\n

Just when you think you\u2019ve got the rules down pat, she makes up new ones.<\/p>\n

Or changes old ones.<\/p>\n

Or knocks your pieces off the board.<\/p>\n

And all you can do is go back to square one and adjust \u2013 that\u2019s if you want to keep playing.<\/p>\n

This is where we\u2019re at in today\u2019s market.<\/p>\n

Just when you think you can see what is meant to happen, the government intervenes and \u2013 BANG! The rules change.<\/p>\n

Reuters<\/a> reports the Group of Seven (G7) sold an estimated Y530 billion on Friday 18 March to weaken the Japanese Yen. And according to an article on Yahoo news<\/a>, traders think the Bank of Japan bought back about $25 billion with yen, to boost supply and weaken the currency\u2019s value.<\/p>\n

Kris talked about what this is doing to the Aussie dollar last week<\/a>.<\/p>\n

According to Murray Dawes, (the technical genius behind Slipstream Trader<\/a><\/em>) the central banks have basically come out and said they\u2019ve capped the Yen. \u00a0They won\u2019t allow it to climb.<\/p>\n

And this manipulation is stuffing up the market.<\/p>\n

Murray has spent over 20 years in the markets. He\u2019s battled it out in the trading pits. He\u2019s handled multi-million-dollar accounts for some real high rollers.<\/p>\n

But right now he\u2019s incredibly frustrated.<\/p>\n

Because \u2013 thanks to this outside interference \u2013 it\u2019s almost impossible for him or any experienced trader to tell where the market is going to go next.<\/p>\n

Below is a chart Murray knocked up of the Aussie Yen versus the ASX 200. The AUDJPY is in blue. The ASX200 is the black line.<\/p>\n

AUDJPY vs ASX200<\/strong><\/p>\n

\"\"<\/a>
\nSource: Slipstream Trader<\/a><\/em><\/p>\n

As you can see, they are about as closely correlated as they could be.<\/p>\n

You see that sharp selloff to the right of the screen? The low was the same day as the G7 intervention\u2026 now take a look at that turnaround!<\/p>\n

The ASX200 can\u2019t keep pace with the rally. But it\u2019s trying to.<\/p>\n

Murray called the rally to 4700 \u2013 using his technical indicators \u2013 but just when the market should have fallen, the G7 stepped in and propped it up again.<\/p>\n

The market is like a feather floating on the breeze. And the central banks are using a big cash fan to keep the feather afloat.<\/p>\n

Eventually they\u2019ll blow it so far it\u2019ll fly out of reach\u2026 then nothing they can do will stop the crash from happening.<\/p>\n

But here\u2019s where you\u2019re at today\u2026<\/p>\n

The US dollar is weakening.<\/p>\n

The yen is weakening to the US dollar.<\/p>\n

So, versus the Aussie dollar, we\u2019re seeing a large sharp spike in that Aussie yen which is feeding through to strong buying in the equity market.<\/p>\n

And things could be about to get interesting\u2026<\/p>\n

You see, Murray says the market has rallied into a key sell zone.<\/p>\n

\"\"<\/a>
\nSource: Slipstream Trader<\/a><\/em><\/p>\n

Over the last two years, this area (around the 5000 mark) has provided amazing resistance\u2026 you can see the market has failed to break through it four times.<\/p>\n

We\u2019re rallying strongly into that zone. And Murray expects we\u2019ll meet resistance here\u2026 but if we continue to rally through and break out to the upside \u2013 and the strength of this market continues unabated next week \u2013 who knows where it could go?<\/p>\n

Instead of looking for ways to cash in on this rally \u2013 or a crash \u2013 you might be better off waiting to see what the market will do next. Because we\u2019re still waiting for the smoke to clear from the G7\u2032s latest effort. And you need clear vision if you\u2019re going to profit from what happens next.<\/p>\n

Aaron Tyrrell
\n<\/strong>Money Morning<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Reuters reports the Group of Seven (G7) sold an estimated Y530 billion on Friday 18 March to weaken the Japanese Yen. And according to an article on Yahoo news, traders think the Bank of Japan bought back about $25 billion with yen, to boost supply and weaken the currency\u2019s value…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-20520","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=20520"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20520\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=20520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=20520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=20520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}