9/10 Market Analysis and Short Column

Nice to work with you today as well.

This is Ere.

Real-time tweets are posted here.

The Dow-Japan spread short was exited at around 7:30 AM Japan time with full profit.

Yesterday's dollar-yen also hit the target exactly with a limit order and exited fully.
As for trading, this is about it, and I spent the rest just watching.

The Dow Jones average found support at a horizontal line connecting July highs and bounced.
The Tuesday after Labor Day, Wall Street was supposed to be in a meeting, so today felt like the real opening act.
Thereafter, stock prices surged.

Thus, the flow was to unwind the initially targeted price gap short that had fallen to a first-approximate level in Japanese time.

As for the dollar-yen, there is nothing particularly to mention about the trade as noted in yesterday's article.
There is no distortion, so I expect to trade in a range; if cheap, buy; if expensive, sell. In the current environment of dollar strength, the only option is to buy if cheap.

Today's topic is the ECB monetary policy decision meeting.
It will flow into next week's FOMC.
Interest rates are expected to stay unchanged, so I think the focus will be on the economic outlook, the stance on easing, and commentary on the foreign exchange market.

Volatile pairs carry high risk and high reward, but it becomes difficult to calculate position sizing, and if you only look at margin, losses relative to total assets stay fixed, yet the high volatility can undermine profitability, so calculating those aspects is cumbersome. If you can't ride it, you tend to give up quickly.
Those factors will matter later, and I will monitor the trend as I write, but since euro/yen selling is not triggering now, ECB looks more like just observing.

Stock selection (short column)

Choosing currency pairs is a very important factor that determines trading performance, and one instrument should be