07:25am    Early start for me today, I’ve just sent off my daily ‘Trading-Guidance’ email to subscribers and now I’m off for a cycle ride with neighbours along the beach path in half an hour.

Market Update:

China is dominating market news again, the People’s Bank Of China has devalued their currency for the second day in a row after disappointing Industrial Production and Retails sales numbers were announced earlier this morning (UK time).  The market reaction hs been larger than expected today as the Chinese Government did say yesterday that Monday’s devaluation was an isolated move, but typically they were economical with the truth again. This latest move has been instigated to stem any panic in Asian markets and to stabilise the economy which should result in the Chinese Yuan more closely reflecting market forces rather than be controlled by the communist government.

These problems within China are also having ripple effects here in Europe as luxury goods manufacturers who have had enjoyed a bumper few years due to the expanding Chinese economy are now feeling the pinch as their products will now be more expensive – this explains some of the falls in European indices yesterday. U.S. markets also ended the day down slightly over worries about cheap Chinese imports affecting their own manufacturing base plus another fall in Crude Oil values – WTI Crude ended the day at $43:11 (down $1:60) and has fallen further during the overnight Asian session.  Watch out for more sudden moves today after the U.S. Crude Oil Inventories stock situation is announced this afternoon, a fall of 1.6 million barrels is expected.

Trading Diary:

10:20am   Back home now and the only possible opportunity I can see on my charts at the moment is a potential ‘long’ trade on WTI Crude/Brent Crude.

10:55am   I am now in a ‘long’ position on my WTI Crude chart with a 43 pip stop loss.

12:00 Midday    I am now also in a ‘short’ trade on my Dax 30 chart using another trendFX set-up. The stop loss this time is 25 pips.

14:10pm   Still in both positions, the Dax trade is doing much better than the WTI one.

15:05pm   Understandably the WTI Crude chart is becoming quite volatile as well get close to the Crude Inventories numbers announcement, so with this in mind I have exited my position with a small +9 pip profit. Still in the Dax trade.

17:10pm    My Dax trade has been going sideways now for the last couple of hours so I am now out with a profit of +109 pips.  Going to pick up some trader friends up from the Airport now so no more trading today.