07:25am   Fairly early start for me today, I am back in Suffolk and off for a cycle ride in a minute along the beach path and then I’ll be here in the study this morning doing some chart watching and catching up on emails then this afternoon I am playing my first game of golf for 15 years….

Market Update:

Overnight the Japanese Nikkei was the only main Asian index that ended up after a volatile session. Both Chinese indices finished down with the main Shanghai Composite losing nearly 1.8% and last night’s volatility was mainly blamed on Janet Yellen’s comments after the U.S. markets closed yesterday. She hinted that the Federal reserve will probably raise rates before the end of 2015 by saying that as long as inflation stays stable and the economy continues to be strong enough to support an increase in employment then all the conditions were right for a rise in the base rate before the end of the year. She also said that herself and other Fed policymakers thought that the U.S. economic prospects over the next year “appeared solid” so markets today should be generally bearish as companies look to endure higher borrowing costs in the run-up to Xmas. With a rate rise in the U.S. now definitely on the cards, it’s only a matter of time before Mark Carney and the Bank Of England move their own base rate off the historic low.

The Gold market was in a bullish mood yesterday as it staged its biggest one day move in 8 months, rallying 230 pips as the U.S. market opened and ended the day at $1153.20 although with the prospect of higher interest rates there may well be a return the bearish trend that is evident on the weekly chart.

Trading Diary:

10:55pm    Not much happening on my charts this morning so far so going into town for an hour to do some shopping.

12:20pm   There maybe a bullish trendFX set-up on my German Dax 30 chart.

12:35pm    The Dax price has moved up sufficiently to trigger a ‘long’ trade — my stop loss is 33 pips.

13:15pm   Before I go to lunch I’ll watch my position carefully as the U.S. trading session is about to start and European markets have the potential to become volatile for a short while.

13:45pm   Price has become quite volatile so I am out of my trade with a +43 pip profit.  Lunch and golf now.